BG Takes Over Operational Control of QCLNG Plant in Australia from Bechtel

BG Group announced Thursday that operational control of Train 1 at its Queensland Curtis LNG (liquefied natural gas) plant in Australia has been formally transferred to QGC, BG Group’s Australian subsidiary, from Bechtel Australia, which constructed the facility.

In addition, the Company announces that approval for the sale of its QCLNG gas pipeline has been received from BG Group’s Train 1 equity partner, the China National Offshore Oil Company (CNOOC). As a result, the preconditions for sale of the QCLNG pipeline to APA Group have been satisfied in full. The sale of the pipeline remains on track for completion in the second quarter of 2015.

The transfer of operational control of Train 1 marks the start of commercial operations at QCLNG. First production from Train 1 occurred in December 2014, with 16 cargoes shipped to date. QCLNG’s Train 2 is currently under construction, and is expected to start operations in the third quarter of 2015.

Helge Lund, BG Group’s Chief Executive, commented:

"We are pleased to be taking operational control of QCLNG following its successful start-up and commissioning over the past six months. I would like to thank our partners Bechtel for building this world-first facility and helping to establish the LNG industry on the east coast of Australia. The cargoes from Train 1, along with those from Train 2 when it starts up later this year, will add flexibility to BG Group’s LNG portfolio. The transfer of operational control, and CNOOC’s approval, have also progressed our pipeline disposal, which we expect to complete in the coming weeks."

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