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Press release 15 November 2015

QGC development a vote of confidence in industry
 

QGC development a vote of confidence in industry

QGC Pty Limited, along with joint venture partners China National Offshore Oil Corporation and Tokyo Gas, today announces a two-year, A$1.7 billion development of its natural gas tenements west of Wandoan to support gas production.

The investment, which follows receipt of Commonwealth and State Government environmental approvals, has been approved by QGC’s parent company BG Group and the joint venture partners.

BG Group’s share of the investment is within the Group's previously disclosed capital expenditure program. QGC has a 73.75% interest in the relevant natural gas tenements.

The development, known as Charlie1, involves the construction of 300-400 wells, a large field compression station and associated pipelines and facilities which will feed into existing gas processing and water infrastructure at Woleebee Creek.

The works are part of the continuous development of QGC’s tenements in the Surat Basin to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone.

QGC, which has appointed Leighton Contractors Pty Limited as the main works contractor, will progress development and construction immediately. Major infrastructure will be built on QGC property.

Managing Director Tony Nunan said this was an important investment in the future of QGC’s operations and built on the success of the world-first production of liquefied natural gas from coal seams in the past year. The QCLNG plant has delivered 62 cargoes since first LNG production in December 2014.

“This is a vote of confidence in the secure, long-term future of Queensland’s natural gas industry, which will employ Queenslanders for many years to come,” Mr Nunan said.

“The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1,600 construction jobs and business opportunities during the two-year project.”

1 Charlie is named after the graticular section of the block on which the largest part of the development will take place.

Notes to Editors:

A map of the Charlie project area and photos from our QGC operations can be found on the QGC flickr page

About QGC

QGC Pty Limited (ACN: 089 642 553) is a leading Australian natural gas explorer and producer focused on supplying gas to domestic and international markets. QGC has established one of Australia’s largest capital infrastructure projects to turn Queensland’s world-class gas reserves into liquefied natural gas. QGC’s operations involve production of natural gas in southern Queensland, transportation through a 540km underground pipeline network and liquefaction on Curtis Island near Gladstone for export.  QGC is the Australian asset of BG Group plc, a world leader in natural gas with a broad portfolio of business interests focused on exploration and production and LNG.

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About BG Group

BG Group plc (LSE: BG.L) has a broad portfolio of business interests focused on oil and gas exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

BG Group trades in the US in the form of ADRs (American Depositary Receipts) on the OTCQX International Premier market under the symbol (OTCQX: BRGYY).

For further information visit: www.bg-group.com

Contact:

QGC

Paul Larter
+61 400 776 937

BG Group Media

Kim Blomley
+44 (0) 118 938 6568

Toby Bates
+44 (0) 118 929 2246

Out of Hours Media Mobile:
+44 (0) 7917 185 707

Investors

Mark Lidiard
+44 (0) 118 929 2079

Siobhan Andrews
+44 (0) 118 929 3171

Ian Wood 
+44 (0) 118 929 3829

Investor Relations
+44 (0) 118 929 3025

Social media channels:

Flickr - flickr.com/bggroup
Twitter - twitter.com/BGGroup
You Tube - youtube.com/bggroupofficial

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer to BG Group's Annual Report and Accounts for the year ended 31 December 2014. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.