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 March 2014, the GLNG project was 80% complete and on track for first LNG in 2015.
In line with the 2014 drilling plan, thirty-five wells were spudded in the GLNG acreage during the first quarter, which included 24 development wells (19 at Fairview, 5 at Roma) and 11 appraisal wells.
The deliverability of existing wells in Fairview continues to exceed expectations, with a current average optimum gas rate of 1.9 TJ/day per well from the 171 current producing wells. The Roma field continues to perform in line with expectations, with 50 wells on line and dewatering of the field underway.
Construction at the three upstream gas hubs progressed towards 85% complete during the quarter, with a focus on the critical activities required to achieve mechanical completion. The planning and ramp up of commissioning activities has commenced.
Gas transmission pipeline
The 420-kilometre gas transmission pipeline is progressing well and remains on track for completion in the second quarter of 2014. All pipeline is in the ground and reinstatement is complete on 85% of the pipeline route. Pre-commissioning is well underway, with 85% of clean and gauge activities successfully completed and 48% of the pipeline hydrotested.
A major milestone was achieved during the quarter with construction completed on the 4.3 kilometre marine crossing tunnel and the pipeline successfully installed. Testing, tie-ins and end plug construction is underway.
Construction on Curtis Island continues to progress well. All of the 82 Train 1 modules have now been delivered to site and installation is nearing completion. Six of the 29 Train 2 modules have been delivered to site, and construction is underway on all of the remaining Train 2 modules. Module connections, piping fit-up and welding, and cable pulling are progressing, and the gas flare stacks raised into position.
Three of the five inner nickel steel tank shell rings for Tank B have been installed, and installation of internal instrumentation piping has commenced. Work also continues on Tank A, with two of the five nickel steel tank shell rings installed.
The jetty is over 95% complete with the installation of quick release mooring hooks and fenders complete, and installation of the gangway tower and pre-commissioning works commenced. The Central Control & Administration and Marine Terminal Buildings are over 90% complete with commissioning and handover procedures commenced.
For the latest news on the GLNG project, please visit the GLNG website.
GLNG is on track for first LNG in 2015.