LNG

BG Group subsidiary QGC awarded a A$100 million contract to Brisbane pipeline construction company Murphy Pipe and Civil Constructions for the installation of more than 90 kilometres of steel pipelines for the Queensland Curtis LNG project.

The pipelines will transport coal seam gas and water between gas and water processing facilities west of Dalby in the Surat Basin, southern Queensland.

The contract is for about 25km of 400mm-diameter gas pipelines and 66km of 560mm, 760mm and 960mm-diameter water pipelines. QGC said.

Work will start immediately and will provide employment for about 250 people, with Murphy Pipe and Civil recruiting locally, where possible.

The work is expected to be completed in mid-2013. The contract includes an option for Murphy Pipe and Civil to undertake further work of this type.

The gas pipelines will link three field compression stations to a central processing plant. The water pipelines will link storage ponds in the area to the Kenya Water Treatment Plant, south of Chinchilla.

A field compression station receives gas from wells and increases the flow rate through a pipeline to a central processing plant, which removes any remaining traces of water and impurities from the gas for supply to customers.

This year, QGC also awarded a A$250 million contract to Murphy Pipe and Civil to construct
polyethylene pipelines that transport gas and water from wells to processing facilities.

Queensland Curtis LNG Project Director Mitch Ingram said work on gas field development would expand rapidly over the next year, providing excellent opportunities for local companies to bid for work.

"Local communities are reaping the benefits of our spending on the construction of infrastructure for our QCLNG Project," Ingram said.