BG Group invests in Australia's LNG sector

Nov. 1, 2010 at 8:40 AM
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READING, England, Nov. 1 (UPI) -- A liquefied natural gas plant in Australia is set to become the first to be supplied by coal seam gas, British energy company BG Group announced.

BG Group said it was set to invest $15 billion during the next four years to develop an LNG plant, related wells, field facilities and pipelines for the Queensland Curtis LNG project. The decision was made after the Australian government sanctioned the company's environmental program at the facility.

The first phase of the project will have the capacity to produce more than 8.5 million tons of LNG per year.

BG Group Chief Executive Officer Frank Chapman said the latest investment decision comes three years after initial interests in the project.

"Today, less than three years later, we are announcing our decision to develop the world's first LNG plant to be supplied by coal seam gas and the foundation project at the center of a major new Australian export industry," he said in a statement.

Coal seam gas comes from gas trapped by water pressure in underground coal beds.

First LNG shipments are scheduled for Chile, China, Japan and Singapore starting in 2014.

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