BG Takes Control of Australian LNG Production Site

British gas producer BG has taken full operational control of the first production facility, known as Train 1, at its Queensland Curtis LNG plant in Australia from builder Bechtel, marking the official start of commercial operations.

The Queensland plant is one of Australia's biggest capital infrastructure projects, involving $20.4 billion of investment from 2011 to 2014. It is a jewel in BG's LNG business that Shell said was one of the factors justifying its $70 billion takeover bid for BG.

BG has already shipped 16 cargoes from the facility since its opening in December 2014 and the second production site, Train 2, is expected to start operating in the third quarter of this year, the company said.

The energy producer also said on Thursday it had gained approval from equity partner China National Offshore Oil Company (CNOOC) to sell its QCLNG gas pipeline, pushing forward a $4.5-5 billion deal with APA Group announced in December.

The deal is expected to conclude this quarter, BG said, who will use proceeds from the sale to reduce net debt and fund future growth.
 

Reporting by Karolin Schaps