APLNG, QCLNG agree to share infrastructure

Two liquefied natural gas export projects on Queensland’s Curtis Island, Australia Pacific LNG and QCLNG have agreed long-term infrastructure sharing.

APLNG, a joint venture between ConocoPhillips, Origin Energy and Sinopec, has also agreed to secure additional natural gas supplies, the project’s statement reads.

Under the tolling agreements, the Shell-led QCLNG project will be able to transport and process gas and water from the Arrow Energy Surat Basin fields using available capacity in existing Australia Pacific LNG-QCLNG joint infrastructure.

The infrastructure sharing arrangements will commence from 2020 and continue until 2035, with options to extend to the end of 2049.

In addition, Australia Pacific LNG has taken the opportunity to secure up to 350 PJ of gas from the QCLNG project. The agreement to buy gas from the QCLNG project at an oil-linked price over 10 years from 2024 will diversify and strengthen Australia Pacific LNG’s gas portfolio.

The deals are, however, subject to Arrow Energy taking certain final investment decisions in connection with the development of its Surat Basin fields.