The first phase of the project encompasses the development of a two-train liquefaction plant on Curtis Island near Gladstone in Queensland together with the associated upstream and pipeline facilities.

The QCLNG project will be operated by BG Group’s Australian subsidiary, QGC, a coal seam gas explorer and producer.

The first phase of the liquefaction plant will consist of two LNG trains with a combined capacity of 8.5 million tonnes per annum (mtpa).

First LNG exports are planned to commence from 2014, underpinned by agreements in Chile, China, Japan and Singapore for the purchase of up to 9.5mtpa of LNG.

BG Group’s decision to sanction the development of the first phase of the QCLNG project completes the final condition required for implementation of its agreements with the China National Offshore Oil Corporation signed in March 2010.