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ConocoPhillips announces second train for Australia Pacific LNG Project
Comtex News NetworkAug 26, 2012 (Datamonitor via COMTEX) --ConocoPhillips, an integrated energy company, has announced the sanction of development of a second 4.5 million tonnes per annum, or MTPA, production train for its Australia Pacific LNG coal seam gas, or CSG, to liquefied natural gas, or LNG, project in Queensland, Australia.
"This announcement marks another important milestone for the Australia Pacific LNG project and ConocoPhillips," said Ryan Lance, chairman and CEO. "Sanctioning of the second train is the final step in the approval process for the project. From this point we are committed to the development and construction of all infrastructure and facilities to ensure the first delivery of LNG in 2015."
LNG exports from the second train are scheduled to commence in early 2016 under binding sales agreements to Sinopec Corp. and Kansai Electric Power Company (Kansai Electric). Sanction of the second LNG train includes the further development of related upstream gas gathering and processing infrastructure as well as the construction of the second production train by Bechtel.
As previously announced, the estimated gross capital cost associated with the second train is $6 billion, with a total two train project cost of $20 billion. The majority of the scope will be executed under pre-agreed options to extend existing contracts related to the first LNG train, including the Bechtel International, Inc. and Bechtel Australia Proprietary Limited contract for facilities on Curtis Island.
Following the start up of the second train, the project has an anticipated peak production net to ConocoPhillips of 100,000-105,000 barrels of oil equivalent (BOE) per day. This long-term project has returns that are competitive with other LNG projects and will provide long-term production and cash flow to ConocoPhillips's portfolio, contributing to the company's plans to deliver 3 to 5% annual production growth and 3 to 5% annual margin improvement.
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