PREMIER BLIGH WELCOMES LNG AUSTRALIA FIRST

Queensland will host the first plant in Australia to convert coal seam gas to liquefied natural gas on a commercial scale under an new deal announced by Premier Anna Bligh today.

Premier Bligh welcomed the signing of a $100 million agreement that will see the construction of a multi-million dollar liquefied natural gas plant near Chinchilla to create fuel for trucks from coal seam gas.

Premier Bligh joined Gas company BOC and coal seam gas exporter QGC to announce the $100 million contract at a function in Chinchilla, in southern Queensland today.

Both companies say the new plant is on track to be first in Australia to produce liquefied natural gas (LNG) from coal seam gas.

The Premier said BOC’s new plant will complement the company’s other micro-LNG plants in New South Wales, Victoria and Tasmania, which create LNG from conventional gas reservoirs.

“This deal means QGC will supply BOC with up to 30 petajoules of coal seam gas over 15 years, with an option for a further 15 years,” said the Premier.

“BOC intends to liquefy the gas at a micro-LNG plant to be built near next to the Condamine Power Station. Construction is expected to start in early 2011 providing 40 jobs in the region.”

Premier Bligh said the agreement heralded the start of a new industry for Queensland that could see heavy transport switch to LNG, an environmentally cleaner fuel than current alternatives.

“LNG produces up to 25 per cent fewer emissions than diesel when used for transport and is a quieter, proven, safe alternative to other fossil fuels,” she said.

“Through this agreement, Queensland will join the rest of Australia as BOC develops a network of refuelling stations across the country for vehicles converted to run on LNG.”

Under the agreement, QGC will supply gas to BOC from July 2011. If the companies meet that deadline Queensland will become the first in Australia to produce LNG from coal seam gas through proven technology.

LNG is methane, which when cooled to -161⁰C, becomes liquefied taking up 600 times less volume than it does as a gas. This liquefied natural gas can then easily be stored in tanks at atmospheric pressure and be used as a fuel for heavy transport.

The four BOC plants in Queensland New South Wales, Victoria and Tasmania will complement refuelling stations already in operation in South Australia, Western Australia and the Northern Territory, completing a national grid of LNG refuelling stations for the haulage industry.

QGC Managing Director Catherine Tanna said the agreement offered great economic and environmental benefits to Queensland.

“This is a partnership in innovation in which QGC and BOC will use the natural resources of the region’s coal seam gas to create an attractive new industry for Queensland,” Ms Tanna said.

“We will supply trucking companies with an environmentally beneficial replacement for diesel and, in turn, help to support local economies.

“QGC is committed to supplying the domestic gas market from our gas fields in southern Queensland as we continue to develop our Queensland Curtis LNG Project at Gladstone.

“It’s gratifying that we are also on track to become the first to produce LNG from coal seam gas.”

BOC South Pacific Managing Director Colin Isaac said the agreement marked an important step in the development of micro-LNG for the transport sector,.

“This is a safe, reliable and proven technology that will allow hauliers in Queensland to turn to an economically and environmentally appealing alternative to diesel,” Mr Isaac said.

“This fuel is cleaner than diesel and its source is local, which is a win for the hauliers, the environment and for the local economy. Our Chinchilla micro-LNG plant will provide the final link in a national chain of LNG refuelling stations for the heavy transport industry in Australia.”

Contact 07 32244500

Notes to Editors:

BOC

BOC is a member of The Linde Group which supplies compressed and bulk gases, chemicals and equipment around the globe. The company develops safe, sustainable and innovative solutions for customers in many specialty sectors, heavy industry and medical environments. For more than a century the company's gases and expertise have contributed to advances in industry and everyday life, including steelmaking, refining, chemical processing, environmental protection, wastewater treatment, welding and cutting, food processing and distribution, glass production, electronics and health care. For further information, see

www.boc.com.au

The Linde Group

The Linde Group is a world leading gases and engineering company with almost 52,000 employees working in around 100 countries worldwide. In the 2008 financial year it achieved sales of EUR 12.7 billion. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services.

Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at www.linde.com

QGC

QGC Pty Limited (ACN: 089 642 553) is a leading Australian coal seam gas explorer and producer focused on supplying gas to domestic and international markets. QGC is establishing one of Australia’s largest capital infrastructure projects to turn Queensland’s world-class coal seam gas reserves into liquefied natural gas. Queensland Curtis LNG, a priority project for QGC, involves expanding exploration and development in southern and central Queensland and transporting gas through a 540km underground pipeline network to Curtis Island near Gladstone where it will be liquefied. For further information visit: www.qgc.com.auor www.qclng.com.au

BG Group

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. BG Group is active in more than 20 countries on five continents, and has a broad portfolio of exploration and production, liquefied natural gas, transmission and distribution, and power generation businesses. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information go to www.bg-group.com