QCLNG Project Update Newsletter Edition 1 June 2102 - QGC

Approaching
FIRST LNG
Edition 1, June 2012

It is with a sense of excitement that I join
the QCLNG Project at this key period of
development. Evidence of the project’s
progress can be found everywhere you
look across the broad variety of activities
underway from the Port of Brisbane, out
west to the gas fields, up north on Curtis
Island and at scores of points in between.
The project teams have achieved some
important milestones in recent weeks and
with so much going on we want to increase
the frequency of our communications to
share developments on the project with
our key stakeholders. This newsletter will
be issued regularly from this month to
provide key updates on each aspect of the
project as well as related news on QGC’s
activities in the community.
Notable achievements in May
include the awarding of more than
Contents
Message from Mitch Ingram
$335 million in contracts to local
suppliers, the commencement of
construction on the Gas Collection Header
Receipt Station and the completion of
our logistics base at Miles, which will
deliver essential infrastructure support
for the QCLNG Project in the gas fields,
where construction continues apace on
our field compression stations and central
processing plants.
With the materials offloading facility
nearing completion on Curtis Island,
anticipation is building for the first
deliveries of the modules that will form
the LNG processing facilities, scheduled
for mid year.
In the midst of so much activity we are
maintaining our priority focus on safety,
for staff, for contractors and for the
environment and communities in which
we operate. QGC is increasingly active
in rolling out the safety and community
support initiatives associated with
the QCLNG Project.
Looking ahead we will be sharpening our
focus on delivery, ensuring we achieve key
targets in accordance with the project
timelines we have put in place. There will
be many more advances to report on as
we go about delivering one of Australia’s
largest capital infrastructure projects.
I look forward to keeping you up to date
on our progress and sharing the many
highlights on the path to achieving the
world’s first CSG to LNG cargo.
Mitch Ingram
QCLNG Project Director
QCLNG Project 4
Gas fields update 5
Safety update 6
Supporting surf lifesaving in Tannum Sands 6
Pipeline update 7
Stage 2 Water Monitoring & Management Plan 8
LNG Plant update 9
$335m in contracts for local suppliers 11
Miles supply base completed 12
QGC partnership to create Indigenous career paths 12

QCLNG PROJECT
Key facts
Queensland Curtis LNG involves dozens
of communities, hundreds of businesses
and thousands of people drawn from
throughout the state, the rest of Australia
and internationally.
Our plans for this major, integrated
project, involve:
• Expansion of QGC’s exploration and
gas production in the Surat Basin.
• A 540 km buried natural gas pipeline
network linking the gas fi elds
to Gladstone.
• Two processing units, known as LNG
MAP
trains, at Curtis Island. These trains,
which have a design life of at least
20 years, will produce a combined 8.5
million tonnes of LNG a year.
• The site can accommodate an
expansion to 12 million tonnes of
LNG a year, subject to demand.Construction
began late in 2010, with
fi rst LNG expected in 2014.
• The LNG plant will occupy less
than 1% of Curtis Island and will be
separated from public areas by an
environmental protection zone.
• QGC’s existing operations produce
about 20% of Queensland’s domestic
gas demand.
QCLNG is underpinned by BG Group global
LNG sales agreements for almost 10 million
tonnes a year with the China National
Offshore Oil Corporation (CNOOC); Tokyo
Gas; GNL Chile; Chubu Electric and the
Energy Market Authority of Singapore.
In addition CNOOC has acquired 5% of
certain QGC tenements and 10% of one of
the first two LNG trains and Tokyo Gas has
acquired 1.25% of certain QGC tenements
and 2.5% of QCLNG Train 2.
Page 4

Water flowing into the Orana 5 Pond
The Bellevue Field Compression Station
PAGE 5
Kenya Water Treatment Plant
GAS FIELDS UPDATE
Key milestones
May has been a busy month for the Upstream component
of the project. The final stages of commissioning trials have
begun at the Argyle Field Compression Station. The Bellevue
Field Compression Station is also moving ahead with the air
compressors and air receiver installed, cable ladder installation
and hydrotesting under way, as well as progress on stringing
and pipe laying. Earthworks have started at the Woleebee
Creek Central Processing Plant and a field compression station.
The QCLNG Project will comprise a total of six Central Processing
Plants and 24 Field Compression Stations once complete.
The Windibri Water Treatment Plant is supplying water to
Yancoal and Condamine Power Station. At Kenya water is now
being transferred from the Orana 1 water storage pond to the
Orana 5 pond. The ponds are used to store raw water produced
in the gas extraction process before it is processed by the water
treatment plant and made suitable for beneficial use.
Pipeline crossings have been finished at Wambo Creek,
Kogan-Condamine Road and Nine Mile Creek. On the Argyle
Trunkline all crossings are now complete and tied in with the
pipeline now running continuously from Kogan Condamine Road
to the Kenya Central Processing Plant. At the Port of Brisbane
gas trunkline pipe is being unloaded for transport to the field
and construction of the trunklines which will connect the field
compression stations to the central processing plants.
Another key milestone achieved was completion and handover of
the logistics supply base at Miles. Contracts were also awarded
for the procurement of pipe to support water gathering in QGC’s
gas fields and for the installation of gas and water gathering
pipelines using the innovative “spider plough” and fast-fusion
welding technology.

SAFETY UPDATE
One team
As a BG Group business, QGC embraces the “One Team –
Being Safe Together” approach in everything we do. The One
Team approach is all about sending everyone, employees and
contractors, home safe and well at the end of every day and
conducting all our activities in an environmentally responsible
manner cognisant of our obligations to future generations.
Underpinning the One Team approach are four key pillars:
observation; intervention; compliance; and contractor
management. By working together as One Team, we aim to
reach our goal of zero incidents.
Safe driving in focus at the Callide and Valley Show
QGC this month brought its state-of-the-art driving simulator
to the Callide and Valley Show as part of the Road Aware –
Staying Safe Together initiative. This is a joint initiative of QGC
and DriverSafety, which aims to help drivers navigate changing
conditions on regional roads.
Under the program more than 5,400 school students in
Queensland have participated in training sessions since it was
launched in June 2011. Visitors to the show tested their driving
skills at the simulator and spoke to qualified experts about road
safety and safe driving practices.
QGC Vice President Sustainability Brett Smith said road safety
was crucial for all members of the community.
Tannum Sands Surf Life Saving
Club is looking forward to
starting the next summer
patrol season with greater
capacity than ever after
receiving a $47,500 grant from
QGC for important new rescue
equipment and training.
An inflatable rescue boat,
all-terrain vehicle and payment
for additional resuscitation
training courses mean that
the club’s lifesavers will
be able to patrol a wider
area of the popular beach
destination more efficiently
and effectively.
QGC is providing the financial
support through the QGC
Sustainable Communities
Tannum Sands SLSC’s new inflatable rescue boat and all-terrain vehicle
Road Aware’s Keith Poppleton (left) and Gavin Coleman with Rosano Berguescit
Supporting surf lifesaving in
Tannum Sands
Fund, which will see up to
$6 million in funding used to
support short-term, one-off
projects with eligible not-forprofit
and local government
organisations based in the
Queensland Curtis LNG Project
area between 2011 and 2014.
Tony Davis, President of
Tannum Sands Surf Life Saving
Club, said the club’s resources
were being stretched by the
increasing popularity of the
local beaches.
More than 26,000 people
visited the coastline around
Tannum Sands last year.
“QGC’s funding has enabled
us to obtain equipment to
easily access outer reaches of
the bathing reserve,” Mr Davis
said. “This allows us to provide
a high standard of support
back to the community.’’
The new equipment will help
lifesavers to carry out roving
patrols with greater speed and
capability than the current
foot patrols.
Q G C V i c e Pr e si d e n t
Sustainability Brett Smith
welcomed the opportunity
to support the lifesavers.
“This project will provide a real
boost to the capacity of the
lifesavers at Tannum Sands
to keep beachgoers safe,’’ Mr
Smith said.
“This project forms part of
QGC’s goal of supporting and
enhancing the liveability of
communities in the QCLNG
Project area.’’
Page 6

PIPELINE UPDATE Good progress
With all pipe in country
and transported to infield
locations, work on the
540km pipeline network has
continued to gain momentum.
On the 197km Gas Collection
Header, all of the pipe is now
strung out along the Right of
Way and the work continues
to advance on welding the
sections of pipe together. To
date over 90 per cent of the
required welding has been
achieved, with rigorous testing
procedures being undertaken
to ensure the integrity and
safety of the finished product
Preparation for Gas Collection Header pipe lowering-in
PAGE 7
and compliance with all
regulatory requirements prior
to burial.
On the 334km Export Pipeline
several work fronts have
progressed with activities
such as Right of Way clearing
and grading, pipe stringing
and bending, and welding,
as well as work on some
of the road crossings. At a
location approximately 40
kilometres north of Miles,
construction has started on
the Gas Collection Header
Receipt Station. Once built,
the Receipt Station will consist
The Narrows Crossing Temporary Access way, construction of the Humpy Creek bridge complete
of monitoring, control and
maintenance equipment for
the gas pipeline. The Receipt
Station will gather the gas
from the Collection Header and
prepare it for transport along
the Export Pipeline ultimately
arriving for processing at the
Delivery Station on Curtis
Island prior to entering
the LNG Plant.
At the Narrows Crossing
where the pipeline crosses
from the mainland to Curtis
Island, construction of the
second temporary access
bridge, over Targinie Creek,
Lowering-in of the Gas Collection Header pipe
is underway. This follows the
completion last month of the
shorter Humpy Creek Bridge
and the temporary access
way between the bridges.
The installation of piling has
commenced on what will
be the longer of the two
bridges at some 300 metres
in total length.
The first clearing works have
also commenced at the site
on Curtis Island where the
pipeline will come onshore in
the first half of next year and
on the right of way connecting
to the LNG Plant.

QGC LODGES STAGE 2 WATER
Monitoring and Management Plan
QGC has lodged its Stage 2 Water Monitoring and Management
Plan with the Commonwealth Government, fulfilling a key
condition of the QCLNG Project’s approval. The Stage 1 plan
was submitted in April 2011. The Stage 2 plan details how QGC
plans to monitor and manage regional water resources for the
benefit of all stakeholders. It includes results of technical work
completed to date, progress reports on current programs and
an outline of ongoing and future work.
QGC’s integrated groundwater management approach builds on
internal and external expertise to protect Matters of National
Environmental Significance (MNES) and the groundwaters of
the Murray-Darling Basin and Great Artesian Basin.
Mark Riksen, QGC General Manager Water Solutions, said that
the Stage 2 Water Monitoring and Management Plan underscored
the company’s commitment to local and regional communities
as well as to protecting the environment.
“QGC is committing more than A$1 billion to developing water
infrastructure that will provide local and regional people with
a significant new water resource,” Mr Riksen said.
“The document also outlines QGC’s role in this unprecedented
industry effort to expand our knowledge of groundwater
systems for the benefit of all stakeholders.”
Pictured above are some of the key contributors to the Plan.
Front row (left to right): Paul Luker, Tracey Gill, Georgina
Bradfield, Claudia Carter-Pike, Lindsey Campbell, Stephen Howell,
Paige Martin, Rick Evans, Kris Jewett and Jeanette Schouten.
Back row (left to right): Val Weaver, Thomas Berly, Todd Merrett,
Leif Teper, Ashley Busse, John Grounds and Mark Riksen.
Waterway near Chinchilla
Page 8

LNG PLANT UPDATE
Construction of the LNG
plant on Curtis Island is going
ahead at full steam. So far a
total of 450 rooms have been
completed at the Curtis Island
Construction Camp, of which
300 are now occupied. The
mess hall is up and running
and progress is being made
on the other recreational
amenities to benefit workers
in residence at the camp.
Completed accommodation units at the Curtis Island Construction Camp
PAGE 9
Once all dwellings are
complete, a total of 1700
workers will be able to be
accommodated on the Island.
The construction of the Curtis
Island Construction Camp is an
important part of the QCLNG
Project as it reduces the need
for workers to commute daily
from the mainland and also
eases local accommodation
and traffic pressures in and
around Gladstone.
Construction progressing on LNG Storage Tank B

The foundations under construction for the second LNG train
Full steam ahead
Construction of the two LNG
storage tanks on Curtis Island
has also progressed with the
completion of concreting
for the second wall lift on
LNG Tank B and the rebar
installation continuing on
LNG Tank A. It takes 33 months
to build one tank from start
of base construction to being
ready for receiving LNG. Once
complete, each tank will
stand 48 metres high - slightly
LNG Plant construction site on Curtis Island
bigger than London’s Royal
Albert Hall - and hold 140,000
cubic metres of LNG.Work
on the Materials Offloading
Facility is nearing completion
with the final dredging and
piling works under way. This
facility will receive a total
of 80 modules that will be
constructed to form the two
LNG processing facilities
(trains). Currently 62 modules
are under construction in our
module yard in Thailand.
Page 10

$335M IN CONTRACTS
for local suppliers
Local suppliers continue to benefit from
work generated as part of the QCLNG
Project with over $335 million in contracts
awarded in May.
Queensland Building company
J Hutchinson Pty Limited, trading as
Hutchinson Builders, has been awarded
a A$15.5 million contract to build a twostorey
operations and production support
centre for QGC in Chinchilla. The project
will employ up to 70 people, creating up
to 50 new jobs across a range of trades,
administration and health and safety.
Hutchinson Builders recently completed
a A$7 million supply warehouse for QGC
near Miles and in 2011 the company
Top of page: Spider plough. Above: Tyco pipes
PAGE 11
won a A$57 million contract through
WorleyParsons to supply modular
accommodation and facilities for QGC
gas field developments.
QGC has awarded a A$70 million pipe
supply contract to Tyco Water, a whollyowned
subsidiary of Tyco International.
Tyco has sourced all materials from
Australian suppliers for the carbon steel,
concrete-lined trunklines and pipe fittings
to support the water gathering process
in QGC’s gas fields.
Australian firm BlueScope Steel is suplying
20,000 tonnes of steel and 10,000 tonnes
of cement mortar is being sourced from
suppliers local to Tyco’s production
facilities in Queensland and Victoria.
Tyco is expected to employ an extra 100
people and has increased production from
one to two shifts at its Wacol factory in
Queensland to accommodate the contract.
The finished pipes and fittings are also
being carried to QGC’s gas fields by local
transport companies, maximising the
benefits for local business.
Brisbane-based firm Murphy Pipe and
Civil Constructions Pty Ltd has also been
successful in tendering for a contract to
install gas and water gathering pipelines
throughout QGC’s gas fields in the Surat
basin.
The initial phase of the contract is worth
about A$250 million and the company has
indicated that fulfilling the contract could
lead to the employment of an additional
250 people as well as increased work for
its existing network of Western Downs
suppliers and service providers.
In its first decade the QCLNG Project is
estimated to increase Queensland’s gross
state product by up to A$32 billion and
contracts such as these that are ensuring
the benefits of QGC’s work are already
being felt across the state.

MILES SUPPLY BASE
completed
QGC has reached an important milestone
with completion of a logistics base at
Miles, about 340km west of Brisbane.
The Miles base will deliver essential
infrastructure support for the QCLNG
Project in the gas fields and will enable
a substantial reduction in the number
of truck movements on local highways
Completed QGC supply base at Miles
QGC PARTNERSHIP TO CREATE
QGC in partnership with Hutchinson
Builders has been successful in a joint
bid to deliver the Construction Skills
Queensland TradeStart Program to
Indigenous school leavers and career
seekers in the Toowoomba and Surat
Basin catchment area.
Under the program groups of 14 students
will undertake a 12 week training program
delivered by Hutchinson’s Gold Coast
School of Construction to acquire a
Certificate 1 Construction qualification.
The construction training component
part of the program is funded through
Construction Skills Queensland.
Training will closely simulate normal
working conditions with students using
Personal Protective Equipment, working
on real construction projects and following
normal industry work hours.
QGC and Indigenous Workstars are
working with the Gold Coast School
of Construction to identify potential
students, with the first group of 14 having
already commenced their course.
The program focuses not just on training
but importantly, on maximising the
opportunity for students to gain a work
to transport project materials.
Queensland companies Ostwald Brothers
and Hutchinson Builders constructed
the base after winning a contract worth
about A$25 million. The base, comprising
a 2500 square metre warehouse,
60,000 square metre lay-down area,
offices and a rail offloading siding,
The inaugural TradeStart students with trainer Brett Lunney (far left) at Hutchinson’s Toowoomba Modular Facility
placement at the end of the course. It is
anticipated that a number of graduates
will end up on the building site of the
new QGC office in Chinchilla, for which
Hutchinson Builders was recently awarded
the construction contract.
QGC is also seeking to optimise the work
prospects for students in the program by
will be operated by Toll Energy Logistics.
The first rail deliveries of pipe, cables and
other key materials are expected to arrive
this month, eliminating an estimated 1315
truck movements over the next year.
Craig Reeves, QGC Deputy Project Director
(Enabling) said: “The base was completed
on schedule, within budget and without
a single recordable incident which is a
significant achievement.”
Project Manager for Ostwald Brothers
Keith Harris said: “This is a project that can
be truly regarded as a ‘one team’ effort.”
Project Manager for Hutchinson Builders
Bob Tedford also praised the close working
relationship that developed between the
companies during construction.
Indigenous career paths
supporting selected students to obtain
their driving licence, including helping to
fund professional lessons.
The lack of a driving licence can be a major
inhibitor to sustainable employment
and through its L’s2P’s program this is
something that QGC is actively seeking
to address.
Page 12

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