BG Group announced it has signed binding agreements with China National Offshore Oil Corporation (CNOOC) for the sale of certain additional interests in the Queensland Curtis LNG (QCLNG) project in Australia for $1.93 billion and for the supply of an additional 5 million tonnes per annum of liquefied natural gas.
Additionally, CNOOC will reimburse BG Group for its share of QCLNG project expenditure incurred from 1 January 2012.
The terms of the documents were laid out in the heads of agreement announced on 31 October 2012.
At a signing ceremony in Brisbane, BG Group Chief Executive Chris Finlayson said: “These agreements extend our strong relationship with CNOOC, which spans not only LNG but also exploration offshore China and production in the UK Continental Shelf through participation in the large Buzzard oil field.
“As a foundation partner in QCLNG, CNOOC was among the first to recognise the value and strategic importance of this world-first project – a vision that is now coming to fruition as we move towards first LNG in 2014.
“Combined with the 3.6 million tonnes per annum (mtpa) LNG sale agreement signed with CNOOC in 2010, BG Group now has total committed volumes to China of 8.6 mtpa which will make the Group the largest supplier of LNG to the world’s fastest growing energy market.
“More broadly, the agreements expand our strong LNG position in the Asia-Pacific region, where we are on schedule with our LNG export project on Curtis Island in Queensland; where we have signed long-term LNG sales contracts with customers in China, Japan and India; and, where we will soon begin importing LNG into Singapore through our position as sole gas market aggregator,” Mr Finlayson said.
Under the terms of the agreements:
The agreements exclude any interest in the Train 2 liquefaction facility, transmission pipeline and QCLNG project common facilities.
Completion of the transaction is expected by the end of the year, subject to government, regulatory and other relevant approvals and to the finalising and execution of certain other related documentation.
BG Group’s Australian business QGC Pty Limited remains operator and retains majority ownership of the QCLNG project. In particular, BG Group will have:
[mappress] LNG World News Staff, May 6, 2013; Image: QCG