Qld premier tours newly opened QCLNG plant

The Queensland premier Anastacia Palaszczuk toured the QCLNG
plant on Curtis Island on Friday to celebrate the start of commercial operations
from Train One.

The plant has already been producing gas since January, with
16 cargoes of gas shipped from the plant during commissioning and performance
testing at QCLNG, worth $328 million in export revenue.

The premier was joined by federal minister for industry Ian
MacFarlane on Curtis Island, where they met with QGC managing director Mitchell
Ingram, who said the project generated domestic as well as export gas supplies.

“We’re proud to be delivering an important new energy
industry for Queensland and world markets,” Ingram said.

“Congratulations to our team and Bechtel who have worked
hard to achieve this milestone.

“We also greatly appreciate the support received from our
partners, governments, contractors, suppliers, our many landholders and
community members.”

Construction of the BG Group/China National Offshore Oil
Corporation owned plant by construction contractor Bechtel has been a US$20.4
billion project.

Train 2 at QCLNG will come online in third quarter 2015, and
by 2016 will bring the plant to plateau production of 8 million tonnes of LNG
per year.

Santos follows closely behind with the GLNG plant, which
will begin the commissioning and testing phase in the second half of 2015,
while Origin is targeting October this year for first gas out of the APLNG
plant.

AFR
reported
that the three gas plants would drive up the price of gas in
Queensland by accelerating demand, tripling it in the first two years of
production, as some of the projects do not have enough of their own gas
reserves to meet export contracts.

Analysts say domestic east coast customers are already
complaining of price hikes and inability to lock in long-term supplies.

In addition BG Group is set to be taken over in a US$70
billion deal by Royal Dutch Shell.

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