Blue Energy: QCLNG to load two more cargoes
BG’s QCLNG project on Curtis Island near Gladstone is preparing to load its third and fourth LNG cargo.
Two carriers are currently sitting at anchor off Gladstone, Blue Energy’s Managing Director John Phillips said in a statement on Tuesday.
As shipping data shows, the 159,800 cbm Maran Gas Delphi is currently docked at the QCLNG loading facility, with the 161,170 cbm Maran Gas Posidonia anchored off Gladstone.
“Following start-up of the first LNG plant in Gladstone (QCLNG) and the historic first shipments of LNG cargoes from the east coast over the Christmas/New Year break, demand for gas supply in Gladstone is set to increase exponentially in the coming 12 months as the other LNG plants (GLNG and APLNG) each reach production start-up mile stones,” he said.
Blue Energy also informed that it significantly increased its gas resources in the company’s Bowen Basin ATP814P asset that is surrounded by Arrow Energy’s existing Moranbah gas project and its proposed new gas development and export pipeline project presently undergoing a FEED process to supply gas to the Gladstone LNG hub.
According to Phillips, it is clear that the complex issue of upstream coal seam gas field development and continuous production of feed gas is now the critical element for Queensland’s massive LNG plants to maintain production rates and contractual commitments for the supply of LNG to customers over the next 20 years.
“The consequences of this major change to the east coast gas supply-demand equation will now become apparent as existing domestic gas contracts roll off in NSW, LNG producers attempt to shore up short and medium term gas deliverability shortages through third party gas transactions and domestic gas users struggle to secure long term gas supply agreements for their businesses in the new price environment,” added Phillips.
The paradigm shift from east coast gas producers being price-takers in a high risk business to price-setters in the domestic gas market will be the new norm as nearly 80% of the east coast gas reserves are controlled by entities associated with the LNG export plants in Gladstone, said Phillips.
He added that the progression of the Arrow project would allow Blue’s reserves and resources to access the Gladstone demand centre.
Blue Energy’s current net gas resource across the portfolio now stands at nearly 4,400 PJ of contingent resource, 55 PJ of 2P Reserves and 200 PJ of 3P Reserves, all of which are currently uncontracted.
LNG World News Staff; Image: Bechtel