Australia Pacific produces first LNG from second train in Queensland

Australia Pacific LNG has produced the first cargo of liquefied natural gas (LNG) from the second of its two 4.5 million tonnes per annum production trains at its facility on Curtis Island near Gladstone, Queensland. 

Australia Pacific LNG is a joint venture between ConocoPhillips (37.5%), Origin Energy (37.5%) and Sinopec (25%).

With the start of train two operations, approximately 200TJ/day of equity gas previously directed to the QGC sales contract will become available to Australia Pacific LNG.

Australia Pacific LNG CEO Page Maxson said that the second train has produced 150,000m³ of LNG.

Maxson said: “We currently provide approximately 25% of domestic gas to the east coast market, with sufficient reserves to meet both LNG and domestic demand.”

Recently, the company completed the 120-day operational test period, which relates to the first train at the LNG facility.

All tests for this train are expected to be completed in coming weeks.

LNG production from the facility’s first train started in December last year and the first cargo of LNG was exported in January this year.

A total of 47 shipments have been loaded at Australia Pacific LNG to date.

Origin Energy managing director Grant King said: “Australia Pacific LNG’s transition from development to production will see Origin benefit significantly from its investment in the project through earnings and returns from FY2018 and beyond, based on the current forward curve for oil.

“Origin’s strategy of investing in gas and renewables means the company is well placed to lead the transition to less carbon intensive energy, not only through the energy markets business domestically but also in regional markets through its investment in Australia Pacific.”

The project includes development of Australia Pacific LNG’s coal seam gas resources in Surat and Bowen Basins, a 530km transmission pipeline, as well as a multi-train LNG facility on Curtis Island.  

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Image: LNG production from Australia Pacific LNG’s first train started in December last year. Photo: courtesy of Australia Pacific LNG Pty Limited.