Australia Pacific LNG Project, Gladstone, Queensland, Australia

Australia Pacific LNG is a coal seam gas (CSG) to liquefied natural gas (LNG) project under construction 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 will deliver significant benefits to the region, as well as nation as a whole, by producing cleaner energy. It currently employs 1,600 personnel and will create 6,000 jobs during construction, as well as 1,000 jobs when operational in 2015.

DHL was awarded the logistics contract for all the transportation activities involved in the CSG to LNG project, in March 2012.

Joint venture partnership of Origin, ConocoPhillips and Sinopec

"DHL was awarded the logistics contract for all the transportation activities involved in the CSG to LNG project, in March 2012."

The project is being 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 will manage the construction and operation of the gas fields and the main gas transmission pipeline. The LNG facility will be constructed and operated by ConocoPhillips. The two LNG trains at the plant will have a combined capacity of nine million tons per annum (mtpa).

Infrastructure requirements for the coal seam gas (CSG) to LNG project

The project will require the construction of major facilities, such as underground gas and water gathering systems, a gas pipeline network, processing facilities, drilling rigs and compressor trains for the upstream gas gathering systems.

Related project

  • Arab Gas Pipeline (AGP), Jordan, Syria, Lebanon, Egypt
  • 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 will also complement the new wells developed as part of the project.
  • Support infrastructure includes temporary accommodation, access roads, commutations and sewage infrastructure.
  • Construction is currently underway for the expected completion of the $14bn phase one by the end of 2012. The LNG facility will be built near Laird Point on Curtis Island.
  • It will be constructed using ConocoPhillips' Optimised Cascade Technology.
  • Processing facilities at the Australia Pacific LNG refinery
  • Australia Pacific LNG plant will include two initial LNG trains, each with a nameplate capacity of 4.5mtpa.

The LNG facility will consist of an inlet feed gas metering facility, gas processing systems, product storage tanks, temporary accommodation, mainland storage and marine facilities. It will also feature a jetty, loading berths and docks for shipping the LNG to energy markets in Asia.

Pipeline to transport liquefied natural gas to the Curtis Island facility

The gas pipeline network will include a 522km main gas transmission pipeline from the CSG fields to the LNG facility, with a marine crossing at Port Curtis.

A lateral pipeline will be laid from the Condabri and southern development areas to the main pipeline. Another lateral pipeline will connect the Woleebee and Western development areas with the main pipeline.

A 110km-long infield pipeline will be 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.

Contractors linked to the Australia Pacific LNG project, in Queensland

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 (MCJV) and the Baulderstone Bilfinger Berger joint venture (BBBJV) for the pipeline and upstream facilities, respectively.

"The LNG facility will be built near Laird Point on Curtis Island. It will be constructed using ConocoPhillips' Optimised Cascade Technology."

In May 2011 Leighton Contractors was awarded two contracts worth $800m to construct gas and water infrastructure for the first phase of the CSG development. Under the contract, Leighton will supply 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 will reduce the pressure of the coal seam gas at the upstream gas gathering facility, before the gas is sent to the refinery for processing.

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