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2011 March 23   09:15

BG Group stops gas pipeline work on Queensland LNG project

BG Group has stopped major gas pipeline work for its $15 billion Queensland Curtis Island coal seam gas to LNG project (QCLNG) because some of its environmental management plans had not been approved, Reuters reports.

QGC, BG's Australian unit, said Wednesday it had stopped work on the pipeline last Thursday after an internal review revealed that the work could breach environmental conditions.

"We do not believe the clearing has had an adverse impact on protected plants and animals and the potential breaches do not affect the safety of people," QGC senior vice president Jim Knudsen said in a statement.

Work on the pipeline, which would link the company's gas fields in Queensland's Surat Basin to Gladstone port, will not resume until the environmental conditions are met, Knudsen said.

Australia gave BG's QCLNG project environmental approval last year, but attached 300 environmental conditions.

QGC said it has now submitted management plans for environment, soil, and species management plans to regulatory agencies, but has not yet received approval. The company said it does not expect a material impact on the project's schedule, which has QCLNG coming online in 2014.

QCLNG is one of several coal seam gas to LNG projects worth roughly $70 billion moving forward around the coal port of Gladstone in the next four to seven years.

The coal-seam gas LNG export projects have faced strong local opposition from farmers and environmentalists who say gas drilling in the region will drastically lower water levels in Australia's Great Artesian Basin and pollute groundwater.

Local residents and environmentalists began a blockade to stop BG's construction work earlier this month in a residential area near the town of Tara. A QGC spokesman said Wednesday the current work stoppage was unrelated to the protests.

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