QCLNG begins commercial operations, gets CNOOC pipeline sale approval

BG Group subsidiary QGC has taken operational control of Train 1 at its Queensland Curtis LNG (QCLNG) plant from Bechtel Australia, which built it. BG Group’s Train 1 equity partner, China National Offshore Oil Co. (CNOOC), also approved sale of the QCLNG natural gas pipeline to APA Group, satisfying the last of the transaction’s preconditions. The sale should be finalized this quarter.

The transfer of operational control of Train 1 marks the start of commercial operations at QCLNG. First production from Train 1 occurred in December, with 16 cargoes shipped to date. QCLNG’s Train 2 is under construction and is expected to start operations next quarter (OGJ Online, Dec. 31, 2014).

BG holds roughly 74% equity interest in the upstream resource and related infrastructure supplying QCLNG and 100% of the project’s Curtis Island plant (including LNG storage tanks and jetty).

BG agreed last year to sell its 100% equity interest in the 540-km pipeline to APA for $4.5-5 billion (OGJ Online, Dec. 10, 2014).

Contact Christopher E. Smith at [email protected].