Joint venture partners
Santos - 30.0% (operator)
PETRONAS - 27.5%
Total - 27.5%
KOGAS - 15.0%
Sanctioned in January 2011, GLNG includes the development of CSG resources in the Bowen and Surat Basins in south-east Queensland, construction of a 420-kilometre underground gas transmission pipeline to Gladstone, and two LNG trains with a combined nameplate capacity of 7.8 mtpa on Curtis Island.
The project has an estimated gross capital cost of US$18.5 billion from final investment decision to the end of 2015, based on foreign exchange rates which are consistent with the assumptions used at FID (A$/US$ 0.87 average over 2011-15).
GLNG has sales and purchase agreements with PETRONAS and KOGAS for 7.2 million tonnes per annum of LNG in aggregate.
As at the end of the second quarter 2013, the GLNG project was over 60% complete and on track for first LNG in 2015.
Seventy wells were spudded in the GLNG acreage during the second quarter, which included 58 development wells and 12 appraisal wells. In total, 119 wells were drilled in the first half of 2013, which included 103 development wells (41 at Fairview, 62 at Roma) and 16 appraisal wells.
As mentioned above, a rig floor incident on Saxon Rig 185 operating in the Fairview field occurred on 23 June 2013, tragically resulting in a fatality. All Queensland drilling operations were immediately stopped pending internal and external investigations. All non-Saxon rigs had resumed operations by 5 July and the Saxon rigs are expected to resume operations by the end of July.
Construction progressed at the three upstream gas hub sites, with the Fairview Hub 5 associated water amendment facility (AWAF3) reaching the pre-commissioning stage. At its peak, AWAF3 will be able to treat four mega-litres of water each day, which will be used to irrigate leucaena. Additionally, at Fairview Hub 5 two gas turbines were set on their foundations and installed along with lube oil coolers and the foundations for the hub compressor control room were completed.
At Roma Hub 2, two nodal compressors were installed along with other major equipment including lube oil coolers for three gas turbine alternators, two hub compressor units and a hub compressor intercooler. Testing commenced on the transfer sump for the 100 mega-litre pond.
At Fairview Hub 4, all nodal compressors and coolers were placed on foundations. The control room sites for the hub compressor station and nodal compressor station were backfilled and steel erection of a warehouse was completed, while an oxidation tank and essential services generator were installed. All mechanical equipment was set in the desalination area and a wall embankment for the 200 mega-litre pond was completed.
Gas transmission pipeline
Construction of the 420-kilometre gas transmission pipeline was well underway, with 300 kilometres of the mainland pipeline right-of-way cleared and graded, over 260 kilometres strung and 55% of the total pipeline length welded out. Over 130 kilometres of the pipeline had been buried, with rehabilitation complete on 80 kilometres of the pipeline route. Tunnelling works on the marine crossing commenced on 15 April and continued to progress ahead of schedule, with 1.6 kilometres of the 4.2-kilometre tunnel complete as at mid-July.
In early July, GLNG and QGC reached an agreement to interconnect both projects’ major pipelines to support plant operation flexibility and efficiency for the life of both projects. The construction of the interconnection will enable gas to flow from one project to the other, allowing both projects to buy, sell and swap gas at these points. In addition, the interconnection will provide the opportunity for coverage of operations during respective scheduled and unscheduled downtime and maintenance events. Construction of the interconnection was expected to be completed in 2014.
A significant milestone was achieved during the quarter, with the successful raising of the LNG Tank B roof and its suspended deck in late June. The eighth outer concrete wall lift was completed on LNG Tank A and works commenced on its suspended deck.
The first four Train 1 modules were installed, and the second shipment of six piperack modules was received at site. The Train 1 compressor control building, main substation and propane substation were set on foundations and the Train 1 solvent regenerator and dry gas flare knock-out drum were also installed. The Train 2 absorber column, mercury removal beds, and methane and ethylene cold boxes were set in place. Also, the methane and ethylene compressor deck columns were poured and the third tier of the main flare derrick structure was completed.
At the LNG jetty, all trestle bents have been completed and piling commenced on the mooring dolphins and berthing dolphins. All loading platform piles were driven and cut to height and 21 of 23 pre-cast beams were set into position.
At the module yard in Batangas, 58 of the Train 1 modules are under assembly and another 14 modules were in the final stages of completion. Assembly had commenced on seven of the 29 Train 2 modules.
For the latest news on the GLNG project, please visit the GLNG website.
GLNG is on track for first LNG in 2015.