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    Media Statements

    Coat of ArmsMedia Release
    Premier and Minister for Reconstruction
    The Honourable Anna Bligh


    Premier and Minister for Reconstruction
    The Honourable Anna Bligh

    Friday, May 27, 2011



    Premier Anna Bligh has heralded a new „Gas Age? for Queensland after taking part in the official launch of works on the engine room of the new gas industry in Queensland.

    Ms Bligh said the start of works on the Santos GLNG liquefied natural gas plant on Curtis Island was a historic day for Gladstone and for Queensland signalling the start of the age of a new Liquid Natural Gas industry.

    The mega project on Curtis Island is part of an integrated development that will see coal seam gas sources from the Bowen and Surat Basins, piped to Gladstone and used as raw material for LNG production at Curtis Island.

    Construction of the $16 billion project was officially launched in a ceremony attended by Prime Minister Julia Gillard, Premier Anna Bligh and senior representatives of the project partners, Santos, PETRONAS of Malaysia, Korea Gas and French energy conglomerate Total.

    Ms Bligh said the GLNG project had already added over $2 billion to Queensland?s economy.

    "Over the next 25 years, the project will contribute over $6 billion to State revenue, generate $9 billion a year in exports and see the creation of 6,000 jobs," Ms Bligh said.

    "Our Government has worked hard to get this industry off the ground within a strict environmental framework and today?s milestone on this new mega facility is a historic day for the future prosperity of our state.

    "We have delivered through projects like the $30 million land corridor for an LNG superhighway and our $50million per annum skills Queensland Strategic Investment Fund to make sure the thousands of jobs in this industry can be taken by Queenslanders.

    "There are already close to 2000 people working on this project already and there are also broader economic benefits to the wider Queensland economy from Brisbane to the Gas fields in the Surat Basin.

    "Just last month I announced that a Brisbane boat builder had won a multi-million dollar contract to construct the passenger ferries that will transport the Gladstone workers who will work at this facility.

    "That is an example of how the benefits of this industry will be widespread in offices, construction sites, factories, towns and cities across our State.

    "Gas is a cleaner and lower emissions fuel than coal and it will be an important part of the region?s transition to clean energy.

    "That means Queensland is at the centre of new energy future both here at home and right across Asia."

    Santos Chief Executive and Managing Director David Knox said the commencement of works on the GLNG plant was the culmination of more than three years of planning and preparation.

    "Curtis Island is the engine room for the whole project," Mr Knox said. "This is where coal seam gas from Queensland?s world-class fields will be converted to LNG and exported to Asia."

    "The growing demand for natural gas in Asia is driven by the region?s need for cleaner, secure, safe and reliable energy – and that?s what GLNG will provide."

    GLNG alone will supply 11% of Korea?s domestic gas needs and 9% of Malaysia?s gas consumption.

    The Chief Executive of GLNG, Mark Macfarlane, said Santos and its partners were committed to maintaining the highest environmental and safety standards in developing the GLNG project, and to continue close engagement with local communities during the construction and operation of the venture.

    "Throughout construction, GLNG will always be considerate of the community?s needs. This project will leave a positive and lasting legacy," Mr Macfarlane said.

    Contact 07 32244500

    About GLNG

    GLNG includes the development of coal seam gas (CSG) resources in the Bowen and Surat Basins in south-east Queensland, construction of a 420-kilometre gas transmission pipeline from the gas fields to Gladstone, and two LNG trains with a combined nameplate capacity of 7.8 million tonnes per annum (mtpa) on Curtis Island.

    GLNG will create 5,000 jobs in construction in addition to 1,000 permanent jobs in production. Already around 2,000 people are working on the project – in regional Queensland, Brisbane, Houston and the Philippines.

    GLNG is a joint venture between Santos (30%) and three of the world?s largest LNG companies, PETRONAS (27.5%), Total (27.5%) and KOGAS (15%).

    First LNG exports are expected to commence in 2015. GLNG has binding LNG sales agreements with PETRONAS and KOGAS for 7 mtpa in aggregate.

    The project has a gross capital cost of US$16 billion from FID until the end of 2015, when the second train is expected to be ready for start-up.

    Premier’s Office – 07 3224 4500