Project Profile
Value: US$35,000 million
Location: Curtis Island, Port of Gladstone, Queensland, Australia
LNG: 9 million tonnes per year
Start-up Year: 2015
The project will see the development of the coal seam gas reserves and the initial construction of two LNG liquefaction trains, which will use coal seam gas as feed stock. The first two LNG trains will have a capacity of 4.5 million tonnes per year each. A first train may be sanctioned on its own, and then followed by a second train; unless the partners can approve both trains at the same time. A third train will be added when resources and markets are firmed up to give a total capacity of 13.5 mtpa. A potential fourth train to lift capacity to 18.5 mtpa will be considered in the project’s environmental impact statement. Laird Point is the proposed site of the LNG plant. The main 400-kilometre-long export pipeline to Curtis Island off the Port of Gladstone will be buried in a trench around 45 metres deep. Origin estimates the gross CBM resource base in Queensland’s Surat and Bowen basins at 42 trillion cubic feet, of which 17 Tcf are prospective. The reserves will be tapped by an estimated 20,500 wells.
Australia Pacific LNG has shipped its first cargo of liquefied natural gas (LNG) from Curtis Island to Kansai Electric Power Company. Under the sales and purchase agreement (SPA) signed in 2012, Kansai Electric will receive approximately 1 million tonnes of LNG each year for 20 years from APLNG. (July, 2016)
The second train started production and produced 150,000 cubic metres of LNG. (October, 2016)
Operators:
Australia Pacific LNG, which is a joint venture between:
Origin Energy: 37.5% interest
ConocoPhillips: 37.5% interest
Sinopec: 25% interest
Contractors:
Amiad: Supply and commissioning of self-cleaning disc technology
Baulderstone Bilfinger Berger Services (Australia) Pty Limited
Bechtel: FEED contract
Cimeco: Civil and concrete services
Clayton Utz: Financial and legal advisor
DHL: Manage all transportation logistics
East Coast Pipeline: Install polyethylene pipe
Ezion Holdings: Provide full logistics and support services for the haulage of equipment and modules
Intertek: Provide supplier quality surveillance services
KBR: FEED for pipeline
Leighton Holdings: Gas gathering system contract
Laing O’Rourke: Contract to build gas processing plants and associated infrastructure
LogiCamms: Deliver multidiscipline engineering services
Longmont Engineering Pty Ltd.: Construct the first temporary accommodation facility
MCJV: Upstream pipeline EPC:
Monadelphous Group: construction of upstream gas processing and compression facilities. Construction of the Spring Gully Pipeline Compression Facility at Roma, South Central Queensland (2014).
Consolidated Contractors International Company (CCC)
McConnell Dowell
Nektar Remote Hospitality: Provide catering and camp management services
Resources Camp Hire (RCH): Build a 200 room accommodation contract
Rotork: Supply valve actuation products
Siemens: Compressors
TITAN Energy Services (TTN): Drilling services contract
Vinidex Pty Ltd.: Polyethylene plastic pipe (HDPE)
Wah Seong Corporation Berhad: Pipe coating
WDS Limited: Gas gathering works
Jacobs Engineering Group Inc: A multi-year engineering services agreement by ConocoPhillips to support the sustaining capital program for the Australia Pacific LNG facility after its completion. Jacobs’ scope of work includes engineering studies, Front-End Engineering Design (FEED) services, and detail design including procurement, commissioning and construction support for sustaining capital and mid-cap projects at the facility over a period of four years. The agreement has the option to extend for a further four years.
UGL Ltd: A four year contract with ConocoPhillips on behalf of Australia Pacific LNG (APLNG) to provide downstream maintenance, shutdown and modification project services for the operational phase of the Curtis Island LNG facility. The company expects the contract to generate multi-million dollar revenue over the initial term.
Valmec Services: Contract to provide services to the Talinga Gas Processing Facility, operated by Origin. With a contract value of approximately US$5.3 million, the project will involve Valmec providing maintenance and overhaul services for the compression equipment at the facility , near Chinchilla, Queensland. Work will commence immediately, with an expected completion date of July 2015.
Upstream Production: Upstream PS has been selected to provide wellsite, gas production and water treatment facility maintenance and major works to support Australia Pacific LNG’s operations and maintenance activities in the Surat Basin in South Western Queensland. Under the contract, Upstream PS has been engaged to complete scheduled and unscheduled maintenance and associated services for a minimum of 1500 wells, seven gas processing facilities, nine water gathering systems, two water treatment facilities and one pre-treatment facility. The revenue for the two-year contract, with a one-year extension option, is expected to be approximately US$50 million in total over the total project term. (May 2016)
Xodus Group: Delivery of a new Integrated Production Modelling simulation suite for Origin to run complex scheduling scenarios for the Australia Pacific LNG project. Simulation experts in Xodus’ Perth operation carried out detailed modelling of both the compression facilities and the high pressure pipeline network. A further scope of work involved the use of HYSYS dynamics to produce a hi-fidelity mimic of Origin’s centrifugal compressor control system to fully verify its design prior to installation. The value of both contracts was approximately US$220,000 or AUD$ 300,000. (March, 2016)
APA Group: Build and operate a pipeline from the Australia Pacific LNG network directly to the Wallumbilla Gas Supply Hub, part of a 20-year Gas Transportation Agreement. (September, 2016)
Sub Contractors:
ATCO Structures & Logistics: Design and manufacture a 2,600-person temporary accommodation facility from Bechtel Australia
Ellis Patents: Help construct seven processing plants
Honeywell Process Solutions (HPS): Vital Integrated Control and Safety Systems (ICSS) for Bechtel
Inmarsat: Provide the permanent plant telecommunication systems
Metito: supply of demineralisation systems using reverse osmosis and electrodeionisation
SMOE: Module assembly for Bechtel
ALE: Transportation, load-out, and load-in operations for Bechtel in Indonesia and Australia, as part of the construction of the Australia Pacific LNG project. The company was contracted by Bechtel in August 2011 to carry out the site transportations and load-outs of 69 modules at the S.M.O.E. yard in Batam and Indonesia, and at the LNG facility on Curtis Island in Gladstone, Queensland. The 69 modules ranged in weight from 100t to 3,363t. There was a total of 665 site-moves of various cargo, including the load-in of project components from ships at the neighbouring Kabil Port. ALE then performed the load-out of the modules onto barges.