Anna Bligh, MP
Premier of Queensland
100 George Street
BRISBANE QLD 4000
I write today from Beijing to advise that BG Group - the parent
company of QGC Pty Limited - and the China
National Offshore Oil Corporation, have just signed one of Australia' s largest
sales and purchase agreements for liquefied natural gas.
The contract allows for China to buy 3.6 million tonnes of
Queensland liquefied natural gas each year for 20
years from 2014.
The sales contract was signed by the BG Group chief executive,
Frank Chapman, and the CNOOC president, Fu Chengyu. It was witnessed by the
Federal Minister for Resources, Energy and Tourism,
Martin Ferguson, the Duke of York, and the Vice Minister of China's National
Energy Administration, Liu Qi.
QGC plans to produce coal seam gas from its petroleum licences
in the Surat Basin and transport it by pipeline for
export at the Queensland Curtis LNG plant on Curtis
Island near Gladstone.
When combined with our existing LNG supply agreements - a
20-year agreement with Singapore for three million tonnes a year and a 21-year
agreement with Chile for 1.7 million tonnes a year - the China contract
underpins full production for the first two production "trains" at Gladstone.
This achievement is remarkable, particularly as Queensland's
coal seam gas industry was virtually non-existent a decade ago and plans for a
liquefied natural gas industry emerged only two to three years ago.
We thank you and your Government for the assistance and support
you have given the gas industry to allow us to reach this milestone.
Similarly, we thank your public servants for their hard work and
support in ensuring we have made such good progress.
While success should be celebrated, we still have a significant
way to go to ensure that the QCLNG Project proceeds to a final investment
decision later this year.
We look forward to your continued support and to bringing you
further good news.