QCLNG To Take Downtime in October

Shell-operated Queensland Curtis LNG (QCLNG) is to shut its plant for scheduled maintenance during this October.

It said on QGC’s Facebook page that maintenance is carried out every few years and is essential to the safe operation of LNG facilities. It has applied to the government’s environment department to conduct flaring, so that any excess gas – which could include some of the unit’s propane refrigerant – may be burnt off in a safe and controlled way. QCLNG consists of two liquefaction trains, each of 4.3mn mt/yr capacity. 

The US$20.4bn QCLNG complex began production late 2014 from train 1 which shipped its 1st cargo January 2015. Train 2 started up later in 2015. It was developed by BG Group, which Shell then acquired en bloc for $54bn in a transaction that closed February 2016.

Chinese state Cnooc holds 25% equity of the upstream resource and 50% equity in Train 1; remaining equity, including 100% of common facilities like the jetty, is owned by Shell – apart from a 2.5% equity stake in T2 held by Tokyo Gas.

Cnooc, the largest offtaker from QCLNG at 8.6mn mt/yr, was given in 2013 the option to participate up to 25% in any third or subsequent QCLNG train, but none has been sanctioned. Tokyo Gas is a smaller offtaker.

Shell expects the company's first floating liquefaction facility, Prelude, to start exports next year.

Mark Smedley