It has been more than a decade since ConocoPhillips announced approval of the final investment decision for the Australia Pacific LNG (APLNG) project in 2011. At the time, ConocoPhillips recognized the longstanding potential for this project. APLNG held one of the largest coalbed methane reserve positions in Australia and was ideally positioned to deliver safe and reliable energy to help meet the growing demand for LNG in Asia, as well as the demand of the East Coast domestic gas market.
Fast forward to 2024 and this long-term thinking has resulted in the creation of a world-class LNG facility that has built a solid export supply to Asia, reaching 1,000 LNG cargos on April 17, 2024.
Australia Pacific LNG
- Joint venture between ConocoPhillips Australia (47.5%), Origin Energy (27.5%), and Sinopec (25%)
- First LNG cargo shipped in January 2016
- 1,000th LNG cargo shipped in April 2024
- Two processing trains, each with a nameplate production capacity of 4.5 MTPA using the ConocoPhillips Optimized Cascade® Process
- Two 20-year export offtake agreements in place for LNG — 7.6 MTPA to joint venture partner Sinopec and 1 MTPA to Kansai Electric
APLNG is now the largest gas producer, domestic gas supplier and LNG exporter on the east coast of Australia, producing coalbed methane from the Bowen and Surat basins in Queensland. As a joint venture, it brings together three major energy businesses: ConocoPhillips Australia, Origin Energy (Australia) and Sinopec (China).
“The path for this project has been remarkable,” said APLNG CEO Dan Clark. “Through long-term planning and determination, we have built a world-class export scale business providing critical energy supply to Asia and Australia, while sharing benefits with the communities where we operate.”
Since its inception, APLNG’s supply contribution has seen 3,700 Petajoules (PJs) shipped to international customers and a further 2,100 PJs supplied to the domestic market in Australia. The project attracted 20-year commercial commitments from two key customers in Asia.
“Throughout its eight years of operations, Australia Pacific LNG has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific market and to Australia’s East Coast gas market,” Clark said.
A world-class facility
APLNG’s first LNG cargo shipped in January 2016, after nearly five years of development and construction.
Origin Energy operates APLNG’s gas fields, upstream exploration, production and pipeline system, while ConocoPhillips Australia operates the downstream LNG export facility and the LNG export sales business. APLNG is the largest producer of natural gas in eastern Australia and the liquefaction plant routinely achieves over 99% reliability and can produce greater than 110% of its nameplate capacity.
The LNG export facility employs state-of-the-art engineering and environmental technology and strives to use local and regional resources.
Over the life of the project, approximately 3,500 net wells are ultimately envisioned to supply both the domestic gas market and the LNG sales contracts. The wells are supported by gathering systems, central gas processing and compression stations, water treatment facilities and an export pipeline connecting the gas fields to the LNG facility.
Natural gas is sold to domestic customers. Each year APLNG supplies approximately 30 percent of the Australian east coast domestic gas market. In addition, a steady LNG export supply is supported by two export offtake agreements to joint venture partner Sinopec and Kansai Electric, as well as additional exports made to spot customers.
Decarbonization and environmental protection
The ConocoPhillips-operated LNG facility at Curtis Island uses the ConocoPhillips Optimized Cascade Technology. This technology is a key driver of APLNG's low-intensity greenhouse gas (GHG) profile, making it one of the lowest emissions intensity LNG plants in the world.
APLNG is committed to continually reducing its emissions intensity, with a long-term ambition to be net zero by 2050 for Scope 1 and 2 emissions, by actively pursuing opportunities and leveraging technological innovation to lower GHG emissions intensity from its operations and improve its efficiency. To date, some of the projects that have been implemented include reactivating nitrogen reduction unit thermal oxidizers to reduce flare emissions; and a power boost project, where the gas turbine generator’s peaking power is elevated, increasing "spinning reserve" and thereby reducing emissions by reducing the number of units online.
The LNG facility, located on Curtis Island, is within the Great Barrier Reef World Heritage Area and features important coastal ecosystems, including marine plain, mangroves and saltpan. In 2019, ConocoPhillips Australia worked with the two other LNG proponents to transfer 3,200 hectares (about 7,900 acres) of land to government ownership, forming the Curtis Island Conservation Park. This initiative was a momentous milestone in safeguarding the island’s unique ecology. Additionally, A$35 million was contributed by the joint LNG companies for ongoing initiatives to preserve the area.
Sharing the benefits with communities
In addition to providing safe and reliable energy, APLNG has provided benefits of more than A$5 billion dollars through state government royalties, local government rates, spending with local business, access agreements with landholders and community investment. The project (together with other early coalbed methane to LNG projects) introduced the LNG industry to regional communities in Queensland, paving the way for the creation of new jobs and upskilling in advanced industry operations, including creating employment pathways for the local community.
ConocoPhillips, along with the shareholders of APLNG, value a constructive and trusted relationship with their local and regional communities, landowners and stakeholders from all levels of government. Community investment in long-term sustainable programs is an ongoing priority and more than A$60 million has been invested into community support programs.
Committed to safe, reliable energy for the future
ConocoPhillips' commitment to APLNG was strengthened in February 2022 when it completed the purchase of an additional 10% shareholding interest from Origin Energy for $1.645 billion.
“We are proud of the hard work and dedication that has gone into this asset for many years and its importance in the global energy mix in continuing to provide cleaner energy for our long-term buyers in both China and Japan,” said ConocoPhillips Chairman and CEO Ryan Lance. “Through the achievements of APLNG and its other shareholders, Origin Energy and Sinopec, APLNG has become a world-class integrated LNG operation. This facility now benchmarks as one of the top operations in the LNG business. It will continue supplying customers in the Asia Pacific region and Australia with reliable energy that is lower in GHG intensity than many of the alternatives and will help meet energy transition pathway demand for years to come.”