BG Group
The management, development and operation of long term capital assets across the gas chain, from exploration and production of gas & oil, to liquefied natural gas manufacture and transportation, transmission and distribution and power generation.
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BG Group in China LNG project
BG Group PLC (LSE: BG) said it signed a liquefied natural gas project development agreement with China National Offshore Oil Corporation and its affiliates (CNOOC), focused on BG's Queensland Curtis LNG project (QCLNG) in Australia.
Under the agreement, CNOOC will purchase 3.6 million tonnes per annum of LNG for a period of 20 years from the start-up of QCLNG, which is being developed by BG. CNOOC will purchase 5 percent of BG's interest in the reserves and resources of certain tenements in the Walloons Fairway of the Surat Basin in Queensland.
The Chinese group will also take a 10 percent stake in one of the two liquefaction trains which will form the first phase of the QCLNG development at Gladstone in Queensland, and the partners will jointly participate in a consortium formed to construct two LNG ships in China that would be owned by the consortium.
BG and CNOOC intend to complete negotiations and execute fully-termed transaction documents prior to BG's final investment decision, expected in 2010, to sanction the QCLNG project.
BG and CNOOC have been in partnership in offshore exploration in China since 2006. In 2008, BG and CNOOC signed a memorandum of inderstanding under which the two companies agreed to explore opportunities for strategic cooperation.
BG wholly-owned unit QGC continues to make good progress with QCLNG. Upstream exploration, appraisal and development activities are advancing and Front End Engineering and Design work is underway.
In February 2009, BG entered into an agreement with the Queensland government to acquire a 270 hectare site at North China Bay on Curtis Island near Gladstone. The first phase of the QCLNG project will manufacture around 7.4 million tonnes per annum of LNG from two trains, beginning in 2014.
