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    Media Statements

    Coat of ArmsMedia Release
    Premier and Minister for Reconstruction
    The Honourable Anna Bligh
    Deputy Premier, Treasurer and Minister for State Development and Trade
    The Honourable Andrew Fraser

    Queensland welcomes final investment decision on APLNG


    Premier and Minister for Reconstruction
    The Honourable Anna Bligh

    Deputy Premier, Treasurer and Minister for State Development and Trade
    The Honourable Andrew Fraser

    Thursday, July 28, 2011

    Queensland welcomes final investment decision on APLNG

    Queensland took another step on the path to becoming one of the leading global export hubs for liquefied natural gas today with the announcement that proponents for the Australia Pacific Liquefied Natural Gas (APLNG) project have made their final investment decision.

    Queensland Premier Anna Bligh and Treasurer Andrew Fraser said the US $20 billion Final Investment Decision for an initial train and common facilities of a two train 9.0 million tonnes per annum coal seam gas to LNG project will secure 6000 jobs for Queenslanders.

    The APLNG project comprises the development of coal seam gas fields in the Surat and Bowen Basins, a 450 km transmission pipeline to Gladstone and a LNG facility on Curtis Island, near Gladstone.

    The Premier said the decision was a big boost for the industry that will help drive sustainable development and cleaner energy innovation in Queensland.

    “Queensland is poised to become a global LNG hub for key markets in the Asia Pacific region and this investment decision by APLNG really adds weight to our fast growing reputation as a hub for cleaner energy solutions.

    “Today’s announcement makes it three from three – Queensland’s three most advanced projects under consideration have now all come to fruition – this is a huge vote of confidence in our State.

    “A decade ago people said this industry was a pipedream. Less than three years ago we published a blueprint for the industry’s development. Today LNG in Queensland is a reality.

    “The gas age we are creating right here right now will deliver decades of jobs and new business opportunities for Queensland families, that’s why we have done the hard yards on preparing for this incredible growth opportunity.

    “The APLNG project has already invested $2.4 billion in Queensland in its first two and a half years as a joint venture project.

    “At the peak of construction, the project will have some 6,000 workers – including 2,700 in the gas fields and pipeline, and 3,300 at the LNG facility,” Ms Bligh said.

    Treasurer Andrew Fraser congratulated the proponents for APLNG on their decision and praised Queensland’s stunning gas success story so far.

    “This is another example of the 21st century Queensland we are building through our commitment to working with the private sector to create cleaner energy futures and new economic pathways for Queensland,” Mr Fraser said.

    “Already Queensland’s projected economic growth is expected to surpass five per cent per annum and lead Australia, this decision today just reinforces the State’s economic advantage in a world that is hungry for cleaner energy suppliers.”

    The Final Investment Decision represents US $20 billion in coal seam gas to LNG investment and is the third CSG to LNG scheme to commit to Queensland. The others are:

    • October 2010, Queensland Curtis Liquefied Natural Gas (QCLNG) (owned by BG/ QGC) made a final investment decision in October 2010 to invest $15 billion to develop a 2 train 8.5 Mtpa LNG project; and
    • Gladstone Liquefied Natural Gas (GLNG) (owned by Santos/ Petronas/ Total/ Kogas) made a final investment decision in January 2011 to invest $16 billion to develop a 2 train 7.8 Mtpa LNG project.

    “In total, the three projects could create up to 18,000 jobs.

    “This means new business and new jobs for Queensland families for generations to come.”

    Mr Fraser said the Government had put in place a robust regulatory, legislative and policy framework to ensure the CSG industry developed in a way that balanced economic, social and environmental considerations.

    “This project is subject to 600 State and 300 Federal environmental conditions.

    “Unlike some other states who are playing catch-up on world’s best practice regulations and making sure that investment delivers new business and jobs to local people, we are also working with the industry to maximise local economic benefits and employment opportunities for Queenslanders.

    “This approach is opening up fantastic training opportunities for tradies, school leavers and apprentices and ensuring we open up the best possible training and supply chain opportunities in cities and towns right across the state.”

    The project will have initial capacity of 4.3 Mtpa but has the potential to increase production up to 18 Mtpa. The first LNG exports are expected to commence in 2015.

    The APLNG project has received the necessary environmental approvals under both State and Commonwealth legislation and is subject to rigorous conditions.

    APLNG is currently working through its final approval and permits for the LNG facility, gas pipeline and gas fields.

    “It’s also imperative that the agricultural and mining industries can co-exist together in this era of resources growth,” Mr Fraser said.

    “The Government is working with industry and communities to achieve a balance between supporting the CSG to LNG sector’s development, ensuring domestic security of gas supply, protecting prime agricultural land and mitigating the environmental impacts.

    “This is evident in the numerous conditions for approval attached to each project, which are some of the toughest requirements in the world placed on any industry to date.”

    Media contact: Treasurer's Office - 07 3224 6900
    Premier's Office - (07) 3224 4500