Queensland Curtis LNG plant QGC operates the Queensland Curtis LNG plant, located on Curtis Island the second largest island on the east coast of Queensland (after Fraser Island) and the largest island within the boundaries of the Great Barrier Reef World Heritage Area. QGC would like to acknowledge and pay respect to the Port Curtis Coral Coast Traditional Owner groups on whose land we live, work and walk. The island’s southern tip is approximately 6km north of the city of Gladstone, on Queensland’s Capricorn Coast, about 475km north of Brisbane and 40km south-east of Rockhampton. The island is about 58,000 hectares in size and features coastal heaths, rainforest, sand dunes and beach ridges. It is bounded by sandy tidal lagoons on the northern shores, a 40km mangrove-lined passage Evolution of QCLNG on Curtis Island 2010 between the western shore and the mainland, known as The Narrows, and sea grass tidal flats within the natural bay of Port Curtis at its southern end. It features a 8,640ha National Park on its eastern side. 2011 For more than 100 years from 1862, large portions of Curtis Island were pastoral land used to run livestock. In 2008, the transformation began to a new land-use when the Queensland Government set aside a small section of the south-west of the island for an industrial precinct. 2012 Today it has become the source of a new form of energy for the world through the establishment of three liquefaction plants which convert natural gas sourced from coal seams in western Queensland into a global commodity – liquefied natural gas (LNG). 2013 QCLNG plant facts • The plant covers about 270 hectares, or about 1% of Curtis Island • Two 4.25 mpta trains. Total 8.5 mtpa capacity • Expected throughput on plateau around 8 mpta • Conoco Phillips Optimised Cascade® liquefaction process 2014 • Two LNG storage tanks, capacity 140,000m3 each • First plant in the world fitted with GE aero-derivative low emissions turbines – has reduced greenhouse emissions output by 27% • World’s most greenhouse efficient LNG plant outside the Arctic Circle www.bg-group.com www.qgc.com.au Industrial development In October 2010, QGC’s parent company BG Group approved the QCLNG project following receipt of environmental approvals from the Australian and Queensland governments. Principal contractor Bechtel Australia started construction of the LNG plant shortly afterwards and the first quantities of LNG were produced in December 2014. The plant covers about 270 hectares, or about 1%, of Curtis Island. When its two trains reach plateau production in 2016 it will have an output of about 8 million tonnes of LNG a year. Plant efficiency QCLNG is the first LNG plant in the world to be fitted with GE Dry Low Emissions turbines instead of heavy duty turbines, which have reduced its greenhouse emissions output by about 27%. This makes the plant the world’s most greenhouse efficient LNG plant outside the Arctic Circle where naturally cold temperatures create a natural advantage. Natural gas sourced from QGC’s gas fields – the primary gas flared at the QCLNG plant – is almost 98% methane (CH4), as well as small amounts of carbon dioxide (CO2), nitrogen (N) and ethane (C2H6). It requires less processing than gas with a higher carbon dioxide content that is typically processed at other LNG plants around the world. Proven technology QCLNG uses the ConocoPhillips Optimized Cascade® process. This technology was first used in the Kenai LNG plant in Alaska in 1969 and is now used in 12 LNG plants around the world. Natural gas is treated to remove impurities and then chilled in three successively colder refrigeration processes (propane, ethylene, methane) until it reaches a liquid state (LNG) at -162°C. LNG is stored at near atmospheric pressure in insulated tanks and transported in double-hulled vessels to customer receiving terminals. At these terminals LNG is returned to ambient temperature and becomes the same natural gas used to cook meals, warm homes, fuel busses and power plants. Process safety Safe operation of the LNG plant is our number one priority. The facility has world-class systems including significant controls and risk reduction measures to ensure that risks are minimised. The QCLNG Safety Case, which complies with the Queensland Work Health and Safety Act 2011, provides a comprehensive analysis of potential incidents and risks that could lead to an incident, and outlines the control measures in place. The QCLNG plant emergency management plan defines the procedures to ensure protection of employees, the public, environment and assets and caters for information flow and liaison with external authorities and agencies. Our operators have extensive training in operating the plant’s integrated control and safety system. The system features an emergency blowdown system that allows sections of the plant, or the whole plant, to be depressurised automatically or manually following the activation of flame or gas detectors. The plant’s safety system is supported by dedicated fire and rescue crews based at the plant. Under the command of specialist fire and rescue services provider Corporate Protection Australia, QGC has one of the largest private fire services in Australia with crews at Curtis Island and at its processing facilities in the Surat Basin. An integral feature of the emergency response capability at the LNG plant is a $1.1 million fire truck that was specifically designed by Queensland company Quik Corp Fire Engineering. How we make LNG Queensland Curtis LNG plant, Curtis Island, Gladstone, Australia The process: Loading arms 10 LNG carrier LNG storage tanks 9 LNG TRAIN 1 Metering and flow control 1 Filter separation 2 CO2 removal 3 Dehydration 4 Carbon filtration 5 Propane exchange 6 LNG TRAIN 2 Ethylene cold box 7 Methane cold box 8 1 Control the flow Valves regulate the flow of natural gas as it enters the plant. 2 Remove impurities In this first stage of filtration, natural gas is separated from impurities – chiefly free liquids and solids (dust). Some of these elements remain. 3 Remove carbon dioxide CO2 is removed as the gas passes through a solvent. 4 Remove water Remaining water is absorbed in dehydration beds. 5 Carbon filtration Activated carbon beds remove remaining impurities from the gas. 6 Refrigerate using propane The natural gas is ready to be cooled. It passes through a series of three units which operate on the same principles as domestic refrigerators. The first uses propane. 7 Refrigerate using ethylene The natural gas passes through a refrigeration system that uses ethylene. This further cools the gas to the state where it starts to condense. 8 Refrigerate using methane (natural gas) The natural gas passes through a refrigeration process that uses methane to fully condense the gas into LNG. 9 Store the LNG LNG is pumped to two storage tanks, each with 140,000m3 capacity, or about enough to fill an LNG vessel. 10 Load the LNG LNG is pumped from the storage tanks along a 250m loading jetty to the carrier. At the jetty head loading arms transfer the LNG into the carrier. Liquefied natural gas (LNG) Environmental offset In August 2014, QGC, the Queensland Government and neighbouring LNG project proponents announced a landmark conservation initiative that means nearly two thirds of Curtis Island is now set aside for environmental conservation, compared to just over 2% used for the industrial precinct. The companies finalised an environmental offset package worth $34.5 million over 25 years that includes: • Purchase of the 25,000 ha former cattle property Monte Christo and associated freehold and leasehold land and transfer of title to the Queensland Government • Protection of more than 8,700 ha of land either as newly declared conservation park or national park • Removal of grazing, forestry and threatening land use processes from nearly 23,500 ha of the World Heritage Area. Combined with the existing 8,640 ha Curtis Island National Park, more than 59% of the island is now actively managed under an island-wide conservation management strategy that is enabling long-term restoration and management of its environmental values, including research into native plants and animals such as dugongs, turtles and seagrass. The offsets package meets environmental offset requirements for the development of the three LNG plants and marine facilities, plus the gas transmission pipeline corridor on Curtis Island and the marine crossings required for the pipelines between the island and the mainland. In addition, QGC will contribute about $11 million over the next 20 years to the Great Barrier Reef Marine Park Authority for ongoing management of the Great Barrier Reef. In collaboration with industry, science, government and statutory bodies, QGC is also a member of the Gladstone Healthy Harbour Partnership that monitors and reports annually on the environmental, social, cultural and economic health of Gladstone Harbour, including considerations of water quality and fish health. Natural gas is used safely by millions of people around the world. It is colourless and odourless and, like all fuels, it remains safe as long as good operating practices are followed. Natural gas is liquefied by chilling it to -162°C. This reduces it to 1/600th of its original volume – the equivalent of a 43cm beach ball being reduced to a ping-pong ball – making it economical to transport by ship to places that cannot be connected by pipelines. Natural gas was first liquefied in 1912 at a plant in the United States. As a liquid LNG cannot be ignited, however, the industry still goes to extreme lengths to prevent sparks and naked flames in LNG plants. Australia’s Commonwealth Scientific and Industrial Research Organisation, the CSIRO, has shown that LNG poses less of a potential hazard than many commonly used fuels, such as diesel. Although LNG vapours may burn when released to the atmosphere, they do not release energy quickly enough to create overpressures, or an explosion. When LNG mixes with water or comes in contact with land, it warms to form a white vapour cloud that dissipates into the atmosphere, leaving no lasting residue. About QGC London Stock Exchange-listed BG Group is a world leader in natural gas with a broad portfolio of business interests focused on exploration and production and liquefied natural gas (LNG). 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. Contact Details www.bg-group.com In December 2014, QGC became the first operation in the world to produce LNG from natural gas sourced from coal seams and is now adding volumes and flexibility to BG’s global LNG portfolio. The start of production from QGC’s first LNG train is the result of more than four years of development and construction on Curtis Island near Gladstone and in the gasfields of the Surat Basin through the Queensland Curtis LNG (QCLNG) project. Please contact QGC for more information. 1800 030 443 (toll-free) email: [email protected] Published: May 2015 QGC Pty Limited 275 George Street Brisbane QLD 4000, Australia 2015-0105 QGC Pty Limited is the Australian asset of BG Group plc. www.qgc.com.au
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