Australia Pacific LNG Project, Gladstone, Queensland

closed

Australia Pacific LNG is a coal seam gas (CSG) to liquefied natural gas (LNG) project constructed in Queensland. The scheme includes the development of CSG fields in the Surat and Bowen Basins, a transmission pipeline and a two-train LNG facility on Curtis Island, near Gladstone. The two-phased project took off for construction in 2012. It delivers significant benefits to the region, as well as nation as a whole, by producing cleaner energy. It employed 15,000 personnel during construction, and creates 1,000 jobs during operation. DHL was awarded the logistics contract for all the transportation activities involved in the CSG to LNG project, in March 2012. The CSG to LNG project began the first production of LNG in December 2015 and the first LNG cargo from the facility was exported in January 2016. The project was developed by a joint venture between Origin (37.5%), ConocoPhillips (37.5%) and Sinopec (25%), at an estimated cost of $20bn. The project received environmental approval from the state of Queensland in November 2010. The final investment decision (FID) on the first phase of the project was approved by the Board of Australia Pacific LNG in July 2011. The FID also extended the project scope to include a second LNG train of the same size. Origin managed the construction and will operate the gas fields and the main gas transmission pipeline. The LNG facility is operated by ConocoPhillips. The two LNG trains at the plant have a combined capacity of nine million tons per annum (Mtpa). The project involved the construction of major facilities such as underground gas and water gathering systems, a gas pipeline network, processing facilities, and drilling rigs and compressor trains for the upstream gas gathering systems. Arab Gas Pipeline (AGP) is a trans-regional gas export pipeline built to carry natural gas from Egypt to Jordan, Syria and Lebanon. The infrastructure also complements the new wells developed as part of the project. Support infrastructure includes temporary accommodation, access roads, commutations and sewage infrastructure. Construction for the $14bn phase one was completed by the end of 2012. The LNG facility was built near Laird Point on Curtis Island. It was constructed using ConocoPhillips’ Optimised Cascade Technology. Australia Pacific LNG plant includes two initial LNG trains, each with a nameplate capacity of 4.5Mtpa. The LNG facility comprises an inlet feed gas metering facility, gas processing systems, product storage tanks, temporary accommodation, mainland storage and marine facilities. It also features a jetty, loading berths and docks for shipping the LNG to energy markets in Asia. The gas pipeline network includes a 530km main gas transmission pipeline from the CSG fields to the LNG facility, with a marine crossing at Port Curtis, which was commissioned in February 2015. A lateral pipeline was laid from the Condabri and southern development areas to the main pipeline. Another lateral pipeline connects the Woleebee and Western development areas with the main pipeline. A 110km-long infield pipeline was laid to connect the smaller gauge pipe to the larger, main transmission pipeline. It is the key component of the project as it acts as a universal adaptor between the secondary pipelines and the main pipeline. Bechtel Overseas is the engineering, procurement and construction (EPC) contractor of the LNG facility. It subcontracted SMOE, a subsidiary of Sembcorp Marine, to assemble the modules of the LNG plant. In January 2010, Australia Pacific LNG placed engineering, procurement and construction contracts with a McConnell Dowell and Consolidated Contractors joint venture (JV) and the Baulderstone Bilfinger Berger JV for the pipeline and upstream facilities, respectively. In May 2011, Leighton Contractors was awarded two contracts worth $800m to build the gas and water infrastructure for the first phase of the CSG development. Under the contract, Leighton supplied gas gathering systems, including 1,200km-long poly welded pipelines, 1,700km of fibre-optic and power cables and well head instrumentation for installation within the Condabri development area. ATCO Structure and Logistics was contracted in August 2011 to build 2,600 modular accommodation units. Leighton Contractors was awarded another contract in February 2012 to construct a 2,600-bed temporary workers accommodation village at the site. Siemens Energy was awarded a contract for the supply of ten compressor trains for the LNG facility, in March 2011. Compressor trains reduce the pressure of the coal seam gas at the upstream gas gathering facility, before the gas is sent to the refinery for processing. The Ichthys liquefied natural gas (LNG) terminal is part of the $34bn Ichthys LNG project in Darwin, the capital city of the Northern Territory in Australia. The Ichthys LNG project will be one of the largest LNG export facilities in Australia. Drilling for hydrocarbons is intrinsically hazardous but correctly identifying critical safety flaws can go a long way.

High