The project also includes a 200 km collection header pipeline to collect gas from centralised compressor facilities for delivery to the 380 km export pipeline and potentially a 150 km lateral pipeline enabling the connection of additional CSG fields to the export pipeline.

BG will immediately implement phase one of the project after receiving federal and state government environmental approvals for QCLNG.

“Over the next four years, BG Group plans to invest approximately $A15.2 billion in developing the liquefaction plant and related wells, field facilities and pipelines,” the company said.

“There is also significant potential to expand QCLNG, with the construction of a third LNG train already covered by existing state and federal approvals.”

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BG will now issue final notices to proceed to the main contractors appointed for the development of the first phase of QCLNG, including: Bechtel for the engineering, procurement and construction of the liquefaction plant; WorleyParsons for gas field facilities and infrastructure development; and MCJV, a joint venture between McConnell Dowell and Consolidated Contractors Company, for the transmission pipeline network.

Queensland Resources Council Chief Executive Michael Roche has said that BG’s FID on the project demonstrates that Australia’s coal seam gas (CSG)-based export industry has moved “from pipedream to economic reality” in less than a decade.

Queensland Premier Anna Bligh said that the FID would mean that the first of up to 5,000 workers involved in the overall project would be on the ground in Curtis Island this week.

The first phase of project construction will involve development of a two-train, 8.5 MMt/a liquefaction plant on Curtis Island near Gladstone, together with associated upstream and pipeline facilities.

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

The QCLNG Project will be operated by BG Group’s Australian subsidiary, QGC.