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$18.5 billion from the final investment decision to the end of 2015 when the second train is expected to be ready for start-up, based on foreign exchange rates which are consistent with the assumptions used at FID (A$/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 August 2014, the GLNG project was over 85% complete and on track for first LNG in 2015.
In line with the 2014 drilling plan, forty-two wells were spudded in the GLNG acreage during the second quarter, which included 27 development wells (all in the Fairview field) and 15 appraisal wells. In total, 77 wells were spudded in the first half of 2014, which included 51 development wells (46 at Fairview, 5 at Roma).
The deliverability of existing wells in Fairview continues to exceed expectations, with a current average optimum gas rate of 2.2 TJ/day per well from the 183 connected wells, with a total gross field well capacity of 400 TJ/day at the end of May 2014. The Roma field continues to perform in line with expectations, with 52 development wells on-line and an additional 23 pilot wells on-line to assess coal productivity in potential future development areas.
Commissioning of the first upstream hub (Fairview 05) is underway. Construction of the Fairview 04 hub was completed during the quarter and the Roma 02 hub is substantially complete. Commissioning of the pipeline compressor station has commenced and construction of the 120-kilometre Comet Ridge to Wallumbilla pipeline loop is now more than 50% complete.
During the quarter, GLNG executed two third-party gas supply agreements for an aggregate quantity of 85 PJ.
Gas transmission pipeline
Pre-commissioning activities for the entire 420-kilometre gas transmission pipeline are drawing to completion, with hydro-testing and dewatering complete and final drying in progress. Commissioning of the pipeline is planned to commence in the third quarter of 2014.
Good progress was made on the QGC pipeline interconnections during the quarter, with the Mt Larcom interconnect complete and pre-commissioned and construction complete on the Curtis Island interconnect.
Construction on Curtis Island continues to progress well. All of the 82 Train 1 modules have now been set, and work continues on cable pulling and piping hook-up. Of the 29 Train 2 modules, 11 have been set, nine modules are on site or in transit and the final nine modules are under assembly in Batangas. In total, the module yard has shipped 102 of the 111 modules required for the project.
The Train 1 utilities area is substantially complete and work continues on the Train 2 utilities. Hydrostatic testing of the first LNG tank is complete and construction continues to progress well on the second tank. The LNG loading jetty is more than 95% complete, with the installation of quick release mooring hooks, capstans, vessel access gangway tower and loading arms all completed.
The integrated Bechtel/GLNG commissioning and start-up team is mobilising to site. First commissioning gas is expected to be delivered to the LNG plant in the fourth quarter of 2014.
For the latest news on the GLNG project, please visit the GLNG website.
GLNG is on track for first LNG in 2015.