APLNG Project Update: first LNG due in 2015

The ambitious Australia Pacific LNG (APLNG) project remains on track to deliver first LNG in mid-2015 and is expected to reach full production in the following year.

In an investor site tour presentation late last month, Origin Energy revealed that 71% of the project’s upstream component – covering pipeline construction, well drilling, gas and water facilities, electrification, and water disposal and treatment – has now been completed.

Construction and hydrotesting of the 360-kilometre, 42-inch main pipeline line is complete, first gas and water has been produced from the Reedy Creek facility, and mechanical completion of the Talinga pipeline compression station has been accomplished.

Commissioning of Condabri Central Train 1 and first gas and water production from the Orana facility are both on track to for the last quarter of this year, while mechanical completion of both Orana Train 1 and Reedy Creek Train 1 are expected in the first quarter of 2015.

By the end of April this year, 700 Phase 1 operated wells had been drilled and 587 wells had been completed.

To ensure future sustainability of the project, drilling will continue in the Walloons and Spring Gully areas through to 2020, with around 300 operated wells expected to be drilled per year on average.

As part of electrification for the project, construction of the Wandoan South to Eurombah Transmission Project  is forecast to begin in the third quarter of this year.

In addition to the upstream components, the downstream project also remains on schedule, with 70% of the elements now completed.

This involves construction of an LNG plant, tanks and LNG terminal on Curtis Island in Gladstone, with the first two trains to have a processing capacity of up to 9 million tonnes per annum.

Train 1 construction is approaching 60% completion and Train 2 construction is progressing on plan.

Two tanks are nearing mechanical completion. Hydrotesting  is due to begin shortly and both tanks are expected to be complete by the first quarter of next year.

Additional work has involved construction of a temporary workers’ accommodation facility which now has  2,600 beds available and utilised.

With work across the entire APLNG project remaining on target, Origin energy forecasts that 2017 will be the first full year of earnings from both APLNG trains, generating a distributable cash flow of around US$1 billion on average per year.

Read more http://advancewesterndowns.com.au/news-monitor/aplng-set-to-deliver-first-lng-next-year


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