Department of Employment Economic Development and Innovation Queensland

Department of Employment, Economic Development and Innovation Queensland LNG Industry Snapshot May 2011

Queensland Government Modelling § Overall, if all projects proposed for Queensland progressed, this would represent 50 Mtpa of production annually § Government modelling on a mid-range 28 Mtpa industry has concluded the following benefits § Creation of 18, 000 direct and indirect jobs § Increase Gross State Product by $3. 2 billion § Over $40 billion in private sector investment § Generate royalties of over $850 million per year © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 2

LNG Future Demand © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 3

LNG projects in the Asia Pacific Region Pluto LNG • Complete • 4. 8 mtpa Shell Floating LNG • FEED • 3. 5 mtpa BLNG • Completed • 7. 2 mpta Tangguh LNG Northwest Shelf • Completed PNG LNG • Completed • Construction • 3. 8 mtpa • 6. 3 mtpa • 16. 3 mtpa Wheatstone LNG • FEED • 9. 2 mtpa Sunrise Gas Project • FEED • 8 mtpa Devil Creek Development Project • QCLNG • FEED • APLNG • GLNG • LNG Limited Darwin LNG • Completed • 3. 2 mtpa Gorgon LNG • Construction • 15 mtpa © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 4

QLD LNG Projects Project QCLNG Ownership BG Group 100% Project Status LNG Production § State Government Approval - June 2010 § Federal Government Approval – October 2010 § Final Investment Decision – October 2010 § First shipment expected – 2014 § Customers – CHNOOC , Tokoyo Gas & Chubu Electric Initial capacity § 2 trains - 8. 5 mtpa Total Estimated Capex AUD $15 billion Total possible capacity § 3 trains – 12 mtpa GLNG Santos 30% Petronas 27. 5% Total 27. 5% Kogas 15% § State Government Approval – May 2010 § Federal Government Approval – October 2010 § Final Investment Decision – January 2011 § First shipment expected – 2015 § Customers – Kogas and Petronas Initial capacity § 2 trains – 7. 8 mtpa AUD$16 billion APLNG Origin 42. 5% Conoco. Phillips 42. 5% Sinopec 15% § State Government Approval – August 2010 § Federal Government Approval –February 2011 § Final Investment Decision not yet granted § First shipment expected – 2015 § Customers – Sinpoec Initial production § 2 trains – 9 mtpa AUD $36 billion (for 4 train project) § Project about to commence FEED § Initial production 9 mtpa Arrow LNG Shell 50% Petro. China 50% Total possible capacity § 4 trains – 18 mtpa Unknown § Full capacity 16 mtpa Fishermans Landing LNG limited § Environmental Approvals – April 2009 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 § 2 trains – 3 mtpa AUD $1. 2 billion 5

The big 4 - gas reserves Gas tenements - the big 4 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 6

CSG to LNG in Queensland © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 7

The CSG to LNG Process – how it works Customers Field Compression Drilling Rig Station Central Processing Plant Water Pipeline Main Gas Pipeline Water Treatment Facility Brine Contaminate Pond Treated Water Storage © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 LNG Plant LNG Tanker Beneficial Water End User 8

Water Related Issues § • Queensland Coal Seam Gas Water Management Policy introduced in June 2010 The policy deals with: – use of CSG water – evaporation dams – design standards for CSG water aggregation and brine dams – transitional arrangements for existing dams – management of saline effluent and solid salt wastes from water treatment and evaporation processes Download : www. derm. qld. gov. au/environmental_management/coal-seamgas/water-policy. html © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 9

Water Related Infrastructure Example -QCLNG Extracts from the QCLNG Environmental Impact Statement conclude a need for 6, 700 km’s of water pipelines • The pipelines will connect: – 92 in-line buffer storages with a total capacity of 19 ML, covering a total area of 2 ha – 35 regional storage ponds with a combined storage volume of 2, 000 ML, covering a total area of 35 ha – two collection header ponds with total storage of 4, 000 ML to hold 30 days water supply – two raw water storages with total capacity 1, 000 ML and a total footprint of 14 ha – two treated water ponds with 450 ML capacity, covering an area of 6 ha. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 10

Water Related Infrastructure Example -QCLNG • Central Development Area will produce approximately 32 ML/per day. • North West Development Area will produce approximately 87 ML/per day. • South East Development Area will produce approximately 72 ML/per day. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 11

QCLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers Contractor Nature of contract Est. Value Worley Parsons Gas field facilities $580 M Thiess Site works $136 M Lang O’Rourke/GE Betz Water treatment facility $350 M MCJV (Mc. Connell Dowell & CCC Main pipeline construction Unkown Bechtel Oil & Gas Liquefaction plant engineering procurement & construction $7 B-$9 B © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 12

More Information Visit www. lng. industry. qld. gov. au and download LNG Blueprint #1 released September 09 LNG Blueprint #2 released November 10 For project approval conditions visit www. dip. qld. gov. au and search for QCLNG, GLNG & APLNG © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 13

GLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers Contractor Nature of contract Est. Value Fluor Upstream facilities EPC $3. 5 B Saipem Main pipeline construction $1 B Bechtel Oil & Gas Liquefaction plant engineering procurement & construction $7 B-$9 B © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 14

APLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers Major Tier 2 Suppliers Contractor Nature of contract Est. Value Savanna Drilling & workover rigs $220 M Enerstream (Baulderstone and Conneq Infrastructure Services) Gas field early works Unknown MCJV (Mc. Connell Dowell & CCC Main pipeline construction unknown Bechtel Oil & Gas Liquefaction plant engineering procurement & construction $7 B-$9 B © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 15