1. Department of Employment, Economic Development and Innovation Queensland LNG Industry Snapshot May 2011

2. 2 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Queensland Government Modelling  Overall, if all projects proposed for Queensland progressed, this would represent 50 Mtpa of production annually  Government modelling on a mid-range 28 Mtpa industry has concluded the following benefits  Creation of 18,000 direct and indirect jobs  Increase Gross State Product by $3.2 billion  Over $40 billion in private sector investment  Generate royalties of over $850 million per year

3. 3 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 LNG Future Demand

4. 4 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Northwest Shelf Completed 16.3 mtpa Pluto LNG Complete 4.8 mtpa Shell Floating LNG FEED 3.5 mtpa Wheatstone LNG FEED 9.2 mtpa Sunrise Gas Project FEED 8 mtpa QCLNG GLNG APLNG LNG Limited PNG LNG Construction 6.3 mtpa Tangguh LNG Completed 3.8 mtpa Devil Creek Development Project FEED Gorgon LNG Construction 15 mtpa Darwin LNG Completed 3.2 mtpa LNG projects in the Asia Pacific Region BLNG Completed 7.2 mpta

5. 5 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 ProjectOwnershipProject StatusLNG ProductionTotal Estimated Capex QCLNGBG Group 100%  State Government Approval - June 2010  Federal Government Approval – October 2010  Final Investment Decision – October 2010  First shipment expected – 2014  Customers – CHNOOC, Tokoyo Gas & Chubu Electric Initial capacity  2 trains - 8.5 mtpa Total possible capacity  3 trains – 12 mtpa AUD $15 billion GLNGSantos 30% Petronas 27.5% Total 27.5% Kogas 15%  State Government Approval – May 2010  Federal Government Approval – October 2010  Final Investment Decision – January 2011  First shipment expected – 2015  Customers – Kogas and Petronas Initial capacity  2 trains – 7.8 mtpa AUD$16 billion APLNGOrigin 42.5% ConocoPhillips 42.5% Sinopec 15%  State Government Approval – August 2010  Federal Government Approval –February 2011  Final Investment Decision not yet granted  First shipment expected – 2015  Customers – Sinpoec Initial production  2 trains – 9 mtpa Total possible capacity  4 trains – 18 mtpa AUD $36 billion (for 4 train project) Arrow LNGShell 50% PetroChina 50%  Project about to commence FEED  Initial production 9 mtpa  Full capacity 16mtpa Unknown Fishermans Landing LNG LNG limited  Environmental Approvals – April 2009  2 trains – 3 mtpaAUD $1.2 billion QLD LNG Projects

6. 6 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Gas tenements - the big 4 The big 4 - gas reserves

7. 7 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 CSG to LNG in Queensland

8. 8 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 The CSG to LNG Process – how it works Central Processing Plant Field Compression Station Main Gas Pipeline LNG Plant Customers LNG Tanker Water Pipeline Water Treatment Facility Beneficial Water End UserTreated Water StorageBrine Contaminate Pond Drilling Rig

9. 9 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Water Related Issues  Queensland Coal Seam Gas Water Management Policy introduced in June 2010 The policy deals with: –use of CSG water –evaporation dams –design standards for CSG water aggregation and brine dams –transitional arrangements for existing dams –management of saline effluent and solid salt wastes from water treatment and evaporation processes Download : www.derm.qld.gov.au/environmental_management/coal-seam- gas/water-policy.html www.derm.qld.gov.au/environmental_management/coal-seam- gas/water-policy.html

10. 10 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Water Related Infrastructure Example -QCLNG Extracts from the QCLNG Environmental Impact Statement conclude a need for 6,700 km’s of water pipelines The pipelines will connect: –92 in-line buffer storages with a total capacity of 19 ML, covering a total area of 2 ha –35 regional storage ponds with a combined storage volume of 2,000 ML, covering a total area of 35 ha –two collection header ponds with total storage of 4,000 ML to hold 30 days water supply –two raw water storages with total capacity 1,000 ML and a total footprint of 14 ha – two treated water ponds with 450 ML capacity, covering an area of 6 ha.

11. 11 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Water Related Infrastructure Example -QCLNG Central Development Area will produce approximately 32ML/per day. North West Development Area will produce approximately 87ML/per day. South East Development Area will produce approximately 72ML/per day.

12. 12 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 QCLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers ContractorNature of contractEst. Value Worley ParsonsGas field facilities$580M ThiessSite works$136M Lang O’Rourke/GE BetzWater treatment facility$350M MCJV (McConnell Dowell & CCCMain pipeline constructionUnkown Bechtel Oil & GasLiquefaction plant engineering procurement & construction$7B-$9B

13. 13 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 More Information Visit www.lng.industry.qld.gov.au and downloadwww.lng.industry.qld.gov.au LNG Blueprint #1 released September 09LNG Blueprint #2 released November 10 For project approval conditions visit www.dip.qld.gov.au and search for QCLNG, GLNG & APLNGwww.dip.qld.gov.au

14. 14 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 GLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers ContractorNature of contractEst. Value FluorUpstream facilities EPC$3.5B SaipemMain pipeline construction$1B Bechtel Oil & GasLiquefaction plant engineering procurement & construction$7B-$9B

15. 15 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 APLNG Tiers of supply to date Project Ownership Major Tier 1 Suppliers ContractorNature of contractEst. Value SavannaDrilling & workover rigs$220M Enerstream (Baulderstone and Conneq Infrastructure Services) Gas field early worksUnknown MCJV (McConnell Dowell & CCC Main pipeline constructionunknown Bechtel Oil & GasLiquefaction plant engineering procurement & construction$7B-$9B Major Tier 2 Suppliers