Gas Stream February 2016 1

Gas StreamFebruary 2016

Contents

CEO message p.3

Project update p.2

Shipping LNG safely p.4 New medical centre p.9

Gas trading p.11

Local ethylene deal p.5 Thornhill boost p.10

Gladstone housing p.8

Saving Roxy the turtle p.7

In early January the LNG carrier Methane Spirit disembarked from the LNG loading jetty, laden with more than 160,000 cubic meters of LNG, bound for international waters and Asian markets.

Australia Pacific LNG Chief Executive Officer Page Maxson said the successful loading and departure of the Methane Spirit heralded an exciting new era for Queensland and Australia.

“This momentous occasion represents the culmination of years of hard work, by many thousands of people, working safely together with one purpose, and a shared vision for a bright new future for Queensland and Australia,” Page said.

The LNG processed at the Curtis Island Facility was gathered from over 1,000 gas wells located within Australia Pacific LNG’s gas fields in south west

Queensland, compressed at seven new gas processing facilities, and transported to the Curtis Island LNG facility via a 530km high pressure gas pipeline.

We expect to reach full production from two LNG trains by the end of 2016, and the LNG Facility will be capable of filling an LNG tanker like the Methane Spirit every three days.

First export cargo success for Australia Pacific LNG

> The Methane Spirit moored at Australia Pacific LNG’s jetty is loaded with the first liquefied natural gas export cargo.

Australia Pacific LNG has successfully completed the first export cargo shipment of liquefied natural gas (LNG) from its new Curtis Island LNG facility, off shore from Gladstone, in Queensland.

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Project update>

On Curtis Island, final commissioning of train one was completed and production of LNG commenced in December 2015, with progressive cool-down of LNG pipework and storage facilities successfully completed prior to loading the first LNG cargo for export.

The LNG tanker Methane Spirit was loaded with LNG and departed the LNG Facility on Saturday 9 January. By early February Australia Pacific LNG had successfully produced and loaded four more export

cargoes, including the Sinopec LNG tanker MW Pavilion Vanda (above).

ConocoPhillips’ works on Curtis Island now focus on completion of tasks associated with preparations for the start of train two. Successful completion of works on train one has allowed re-deployment of additional resources and support towards train two completion activities.

Upstream gas field facilities associated with Phase One activities are complete, with

all seven new Gas Processing Facilities (GPF) online.

The 977th and final Phase 1 well, COM462, was successfully commissioned at Combabula in November.

As at 31 December 2015, 1,272 development wells had been drilled and 1,090 wells commissioned.

In late December, combined production from all new and existing Australia Pacific LNG gas wells exceeded 1,000 Terajoules per day (T/day).

As a result Australia Pacific LNG is able to meet all customer obligations including export cargoes from train one on Curtis Island and domestic customers.

Upstream operator Origin is now focused on sustain operations with progress on sustain wells proceeding to plan.

Origin has also established a new Condabri distribution facility, which now holds the bulk of the capital spares required to support the gas field and pipeline operations

Australia Pacific LNG continues to make strong progress in the transition from the construction phase to sustainable ‘steady-state’ operations.

Project update>

And this is just the beginning.

Our first export cargo marks the start of a thirty year journey, and perhaps longer, where we help to place Australia, and Queensland in particular, at the forefront as a global force in energy exports.

At the time of publication we have successfully shipped five cargoes of liquefied natural gas, and each cargo contains enough energy when converted to electricity to power a city the size of Brisbane for a week.

An extraordinary amount of work has been achieved over the past seven years. Great achievements are possible when we work safely together with a common purpose and a vision for the future.

I would like to extend my heartfelt appreciation to the many people and organisations who have supported us on this great journey.

In particular I would like to recognise and thank landholders and the communities in which we operate, our contractor partners and suppliers for their respective contributions, and the valuable contributions and support from all levels of Government.

And of course I thank the many thousands of people working tirelessly from our shareholders Origin, ConocoPhillips and Sinopec.

We have a great team in Australia Pacific LNG, and it is a pleasure to be part of it.

We have been very focused on achieving the milestone of first cargo for export. And I am proud that through all this hard work and effort that we have maintained a strong and unrelenting focus on safety, achieving a 32 per cent improvement throughout the 2015 calendar year.

Now we are turning our attention to the remaining second train on

Curtis Island, which we anticipate will be online later this year.

And our Upstream Operator Origin is already strongly focused on sustaining our operations, where we develop new gas wells at a steady and sustainable rate, in order to reach and maintain gas production rates of around 1,400 terajoules per day (TJ/day).

I am certain we will achieve our goals and meet all customer obligations, as we head towards steady state operations for Australia Pacific LNG.

I recognise that 2016 will bring continued challenges as we come fully up to speed against a tough market environment. I am confident that we are well positioned for the challenge.

And as we head into another busy year it’s worth pausing for a moment to reflect on safety and how important it is that we keep focused and keep striving for safer workplaces and behaviours, everywhere, every day.

We have started the New Year with resounding success as Australia Pacific LNG begins exporting liquefied natural gas to the world.

A moment of great pride: First export cargo

Page Maxson, Chief Executive OfficerAustralia Pacific LNG

First shipment to customer and shareholder Sinopec on the Pavilion Vanda.

and maintenance activities, as well as the development inventory to deliver our well campaigns and gathering networks into the future.

The Condabri facility has 6,000m2 under roof storage and 120,000m2 in associated laydown yards centrally located in the Surat Basin to support inventory requirements for Australia Pacific LNG gas field and pipeline operations.

In addition, the Brisbane Central Control Room (BCCR) demonstrated remote facility management capability with a successful remote restart of the Reedy Creek Water Treatment Facility.

The BCCR has the ability to monitor and remotely control the functions of gas field infrastructure, including gas wells and gas processing facilities.

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Sailing the seas with LNG

Local supplier of ethylene sourced for Australia Pacific LNG

How the LNG Facility works

LNG ships are very large - typically up to 290 meters long. That is around twice the length of a rugby field.

Before it can be shipped, natural gas needs to be liquefied by cooling it to -161˚C. This reduces the volume of the gas by 1/600th making it easy to transport.

The LNG is stored in a special containment system within the inner hull of the vessel, which enables the LNG to stay cold without the need for pressurisation.

LNG tankers are double-hulled to provide the insulation to

help keep the gas in its liquid state during transportation.

Additional primary and secondary containment systems also provide a secure storage environment to prevent leaks.

LNG ships are equipped with a range of safety equipment, emergency shutdown systems and fire and gas detection systems.

These purpose-built carriers have transported LNG more than 200 million kilometres over the past 50 years without significant incident.

To support transiting LNG ships, Australia Pacific LNG worked closely on the development of specific LNG Vessel Operating Parameters for Gladstone Harbour.

While in the harbour, each ship will be guided by four tugs and a pilot vessel. It takes 12 - 14 hours to load an LNG ship.

When Australia Pacific LNG’s two trains are up and running, Australia Pacific LNG will ship up to 120-130 cargoes each year, and ships will arrive in the harbour approximately every three days for loading.

Ethylene is one of the refrigerant gases used at the LNG Facility to cool the natural gas until it reaches a liquid state.

Warwick King, President ConocoPhillips Australia East, said the collaboration with BOC and Qenos reduced plant reliability risks by augmenting a traditionally international supply of ethylene with a locally produced refrigerant.

“International supply has a 12 week lead time so the capability to source ethylene in Australia assists ongoing plant reliability,” Warwick said.

“As we use a significant amount of ethylene, a refrigerant used in our cooling process, we have historically sourced it from international markets

as local suppliers were unable to supply in the quantities we required.”

“We have worked with BOC and Qenos so they have the ability to supply Australia Pacific LNG with 60 per cent of the ethylene we will use at the facility with the remaining 40 per cent purchased from international suppliers in South East Asia.”

ConocoPhillips worked with BOC and Qenos to develop and install a unique ISO refilling terminal at the Qenos facility in Victoria. The terminal will supply required quantities to two ConocoPhillips operated LNG facilities - Australia Pacific LNG and Darwin LNG.

The LNG Facility on Curtis Island uses refrigerant gases as part of the compression and cooling process that turns natural gas into liquid form.

These gases – propane and ethylene – are used and re-used to cool the natural gas into a liquid as it travels through the processing facility. They play a key role in the liquefaction technology owned by Australia Pacific LNG shareholder ConocoPhillips.

This technology is called the Optimized Cascade® Process, and has been developed over more than 40 years’ operating experience.

The gas that enters the Curtis Island facility via the main gas transmission pipeline is treated to remove any impurities, such as CO2 and moisture.

The gas then enters the liquefaction section of the plant. Successively colder heat exchangers first use propane, then ethylene and finally liquefied natural gas itself as refrigerants to chill the gas to approximately minus 161 degrees Celsius.

Once natural gas becomes liquefied it takes up just a tiny fraction of its previous volume – in fact it shrinks down to 1/600th of its gaseous state.

Australia Pacific LNG is now proudly exporting LNG cargoes on specially designed ships that are custom-built for the task of safely shipping LNG to Asia.

(L-R) President ConocoPhillips Australia East, Warwick King; BOC South Pacific Managing Director, Colin Isaac and Qenos Chief Executive Officer and Executive Chairman, Jonathan Clancy at the Qenos facility in Victoria.

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Flares

LNG storage Tanks

Train 1

Train 2

Control and Maintenance

Aerial Site LayoutAerial Site LayoutAerial Site Layout>

7Materials Offloading Facility

1 LNG Jetty

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Fitzroy Basin Association Inc. (FBA) and Greening Australia are working in partnership through funding from the Australian Government’s National Landcare Programme and Australia Pacific LNG to protect the nests of this small and unique species during the 2015/16 breeding season, which runs from August to January.

FBA Senior Project Officer Cassandra Bouna said the organisations are proud of the achievements to date, having protected more nests for the first half of the 2015 breeding season, than in the full 2014 season.

“In 2014, we monitored and protected 37 Fitzroy River Turtle nests, and this season we have already protected 80 turtle nests from predators,” Cassandra said.

“The Fitzroy River Turtle nests on shallow sandy or loamy riverbanks along the Fitzroy River upstream of Rockhampton city and can lay 16-20 eggs at a time, with a maximum of two clutches laid during a season per breeding turtle,” she said.

“Eggs are incubated for 46 days so it is a significant task to find, monitor and protect numerous nests at different sites along the Fitzroy River.”

Greening Australia’s Field Officer Kymberly Robinson said the threats for turtle eggs during breeding season were water rats, foxes, pigs, goannas, feral cats and dogs, but also destruction of the nests by cattle and humans active along river banks, and poor water quality.

“Once we find the nest, we use mesh to protect the nest sites, which stops predators from digging up the nests, while allowing the hatchlings to scramble through when they are born,” Kymberly said.

On behalf of Australia Pacific LNG, Natasha Patterson, Origin General Manager Approvals, Land and Community, said the nest protection program was a strong example of the positive outcomes that result from such partnerships.

“The success of this conservation program demonstrates that partnering with FBA and Greening Australia has delivered outstanding results for this vulnerable species, and thanks to their great work, the Fitzroy River Turtle now has a more secure future,” Natasha said.

The Quoin Island Turtle Rehabilitation Centre, located in the Gladstone Harbour, has welcomed Australia Pacific LNG’s renewed support of the facility, which rescues and rehabilitates sick and injured turtles.

The founder of Gladstone Harbour’s Quoin Island Turtle Rehabilitation Centre, Bob McCosker said they are delighted to have received a funding boost from Australia Pacific LNG, allowing the Centre to continue their work with turtles.

“Thanks to Australia Pacific LNG, the support of local businesses, our employees and the many volunteers we have here at Quoin Island, we have seen approximately 70 percent of turtles successfully rehabilitated and released back into the wild,” Bob said.

The Centre has been running for over three and a half years and has cared for 166 turtles since opening.

It has four stand-alone tanks, an in-ground heated rehabilitation pool, an air conditioned treatment room and dry dock room, water filtration systems and a necropsy facility.

On behalf of Australia Pacific LNG, Robert Gibb, ConocoPhillips’ Manager Community and Sustainable Development, said that the funding assistance will go towards food, medical and veterinary expenses, rescue boat and volunteer transport from the mainland to Quoin Island.

Australia Pacific LNG continues its support of the Quoin Island Turtle Rehabilitation Centre

Helping hand for threatened turtles

Fitzroy River turtle hatchlings.

Funding support from Australia Pacific LNG has helped to expand an important nest protection program designed to improve the survival rates of the Fitzroy River turtle (Rheodytes leukops ), which is listed as vulnerable by both the Queensland and Australian Governments.

Australia Pacific LNG External Affairs Manager, Fiona McLeod and ConocoPhillips Manager Communities and Sustainable Development, Robert Gibb with Roxy the juvenile Hawksbill turtle before her release

Australia Pacific LNG has supported construction of a fish ladder which will enable fish migration and improve native fish habitat and breeding grounds along a large section of the Condamine River in southern Queensland.

Origin on behalf of Australia Pacific LNG has contributed approximately $180,000 in funding through an environmental offset arrangement in partnership with the Queensland Murray-Darling Committee (QMDC) to construct a fish ladder below the Condamine Bridge to help native fish ‘step’ their way over the Town Weir wall.

The ladder is a series of rising rock pools and will effectively open the river stretch from Cotswold to the Condabri Weir,

giving native species such as the vulnerable Murray River Cod a better chance of survival.

Natasha Patterson, Origin General Manager Approvals, Land and Community, said the partnership with QMDC was an important initiative.

“We are proud to be assisting in efforts to ensure that native fish habitat is enhanced in areas of the Queensland Murray-Darling Basin where Australia Pacific LNG operates,” Natasha said.

QMDC CEO Geoff Penton said weirs that are a barrier to fish migration had been identified as a contributor to the decline of native fish species in the Murray-Darling Basin.

“This fish ladder is low maintenance and is expected to open up almost 100kms of the Condamine River to fish passage which is a significant gain for fish needing to migrate to forage and breed,” Geoff said.

“And it’s already working, with sightings of dozens of native fish resting in the pools during a flow in the river from recent rain.”

Below Left: QMDC’s Paul Webb (left) with Origin Senior Environmental Specialist Lauran Hahn and Australasian Fish Passage Services Principal Consultant Tim Marsden at the Condamine River.

Below Right: The completed fish ladder – already working.

Fish ladder installed at Condamine Weir>

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Launch of housing project completes commitment

In preparation for steady-state-operations, Australia Pacific LNG has opened a permanent medical centre at the LNG Facility on Curtis Island.

Managed by downstream operator, ConocoPhillips, the medical centre will service all employees and allied contractors working at the facility.

ConocoPhillips Occupational Health Coordinator, Dennis Murphy, said the facility would be staffed daily by a shift nurse and provide employees and contractors with assistance with health related concerns and issues.

“The centre has been developed to manage the broader occupational health needs of Curtis Island employees and medical surveillance requirements of the operational team,” Dennis said.

“The shift nurse will provide assistance in areas such as health and wellness, injury management, return to work and stay at work programs and personal protective equipment fittings.”

“With the centre now operational it will be able to support the ongoing work we are undertaking to integrate Health and Wellness into the business.”

The LNG Industry in Gladstone has launched a new traineeship program that will qualify 18 more local residents to apply for LNG Process Operator roles by early 2017. Successful candidates are expected to begin training next month.

The program is a collaborative partnership between Australia Pacific LNG, QGC and Santos GLNG and will see Energy Apprenticeships Group (EAG) and Central Queensland University deliver a tailor-made training program for people with no prior LNG experience.

Brian Inglis, ConocoPhillips Australia East Training and Competency Lead, said the program would see Gladstone locals gain qualifications to apply for LNG Process Operator roles.

“Trainees in the program will be employed by EAG and get on the job experience hosted at one of the three LNG facilities while completing their Certificate III in Process Plant Operations,” Brian said.

“The program will also help ensure business reliability by providing potential candidates to ConocoPhillips to fill any vacancies that may arise.”

“EAG received over 900 applications to the program and are currently going through the recruitment process so the successful candidates can commence in 2016.”

Australia Pacific LNG’s contribution of $7.5 million dollars to affordable housing in Gladstone was recognised with the completion and launch of the Fisher Crest and Shearwater developments in 2015.

In collaboration with QGC and GLNG, thirty-six high standard apartments and town houses were specifically constructed by Gladstone Affordable Housing (GAH) to provide affordable accommodation options for low to middle income key workers in the health, education and community services sector as part of the Australia Pacific LNG Integrated Housing and Accommodation Strategy (IHAS).

The IHAS was developed in response to conditions of approval set by the Coordinator-General in 2010 and aimed to mitigate the housing and accommodation impacts associated with the Australia Pacific LNG Project in Gladstone, Queensland. The IHAS has two key elements – strategies to manage the accommodation needs of the Project and strategies which addressed the affordable and social housing needs of Gladstone.

Implementation of the IHAS involved significant up-front cash investment into a multi-component approach in an effort to reduce the impacts felt by residents. The components included:

• Establishment of Gladstone Affordable Housing (GAH) and the delivery of 36 high standard apartments and townhouses to the affordable housing market in Gladstone.

• Collaborative rental assistance initiative.

• Fast tracking of Urban Land Development Authority’s land development located in Gladstone suburb of Clinton.

• Construction of new dwellings in Gladstone to accommodate at least 50% of field-non-manual workforce expected to settle in Gladstone, totalling 69 dwellings.

• Construction of a 2,478 bed Temporary Workforce Accommodation Facility on Curtis Island.

The opening of the Fisher Crest development in October 2015 marked the completion of Australia Pacific LNG’s Gladstone IHAS.

Australia Pacific LNG also worked with the Maranoa Shire Council, the Western Downs Regional Council and not-for-profit housing developer Horizon Housing to develop affordable housing options for local people in the Surat Basin communities of Miles and Roma.

> New partnership to deliver LNG Operator Traineeships to Gladstone

>> Permanent medical centre now open at the Australia Pacific LNG Facility

Selling fast: The Fisher Crest Gladstone Affordable Housing development.

Project partners at the opening of the Fisher Crest Gladstone Affordable Housing development (from left) Gail Sellers, Mayor, Gladstone Regional Council; John McAuliffe, Chair, Gladstone Affordable Housing; John Phalen, GLNG Santos; Robyn Sotiris, QGC; Robert Gibb, Australia Pacific LNG; Rebecca Oelkers, Manager, Gladstone Affordable Housing.

Occupational Health Nurse, Jill Brown is one of the nurses based at the medical centre.

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Trade and deliver

As Australia Pacific LNG celebrates the successful first LNG cargo, gas field production continues to ramp up to meet export delivery levels, presenting opportunities to trade excess gas on Australia’s emerging short term gas trading market.

To take advantage of these short term opportunities, and to manage the longer term requirement for matching production with export and domestic customer requirements, Australia Pacific LNG established a new Trading and Delivery team.

The Trading and Delivery team is part of the Shareholder and Commercial group, managed by upstream operator Origin of behalf of Australia Pacific LNG.

Headed up by Senior Manager Mark Zdenek (ConocoPhillips), the Trading and Delivery team has responsibility for executing a variety of sales and delivery contracts secured by the Commercial Operations group, initiating short term customer transactions, as well as participating in the Wallumbilla HUB Gas Trading Market. The team comprises energy traders managed by Nestor Praska and trading delivery systems managed by Paul Forrester.

“Our mission is to find the best commercial outcome for our gas position each day. To do this, we have to take into account a wide range of factors including the operational needs of the enterprise, pipeline capacity and constraints, supply and demand variations, market price, and other factors that affect energy demand such as weather and electrical generation,” Mark said.

The fifteen-member team executes both contracted longer term sales and short term gas agreements with a wide range of commercial and industrial customers, electric generators, aggregators and retailers, as well as the other Queensland LNG exporters QGC and GLNG.

In the short space of 12 months the new Trading and Delivery team has fast become one of the key players in Australia’s emerging short term gas trading market, which revolves around the Wallumbilla Gas Hub, operated by the Australian Energy Regulator.

With the rapid increase in gas field production capability ahead of first gas cargo from the Curtis Island LNG

Facility, the Trading and Delivery team has maximised short-term opportunities to find commercially effective solutions for daily gas volumes that exceed domestic demand.

In recent weeks Australia Pacific LNG has exceeded production rates of around 1,000 terajoules per day (TJ/day).

Of this, 400 TJ/day is earmarked for Australia Pacific LNG’s direct domestic customers – the largest domestic portfolio in Queensland - and the remaining volume is managed through arranged products such as physical puts or swaps, short term transactions or via the Wallumbilla Hub.

With train one up and running on Curtis Island, work is now focussed on bringing the second train on line later this year. Field production will ramp up to a sustained level with a majority of gas directed towards Curtis Island LNG Facility while continuing to meet our ongoing commitment to domestic customers.

Some of the Australia Pacific LNG Trading and Delivery team (l to r) Mark Zdenek (Manager), Todd Minuzzo, Adam Offermann, Erin Sim, Mikolay Podgorski, Paul Forrester, Christine Girgis, Julie McGee and Nestor Praska at the trading desk.

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Aboriginal and Torres Strait Islander people in central Queensland will have access to additional training and employment opportunities, thanks to funding from Australia Pacific LNG for the upgrade and expansion of the Thornhill Training Centre.

The $1.4 million upgrades were constructed in a partnership between Australia Pacific LNG and QGC, together with funding contributed by Thornhill’s owners, Gidarjil Development Corporation.

The centre expansion has delivered new accommodation to house 24 people, an industrial camp kitchen, dining and laundry facilities.

Located south of Gladstone on a 170 hectare grazing property, the new facilities enable Gidarjil trainees to undertake accredited training courses while gaining firsthand experience living and working in a semi-remote location.

Gidarjil Managing Director Kerry Blackman commended Australia Pacific LNG and QGC for their ongoing commitment to helping provide training and development opportunities for local Indigenous people.

“Thanks to the support we’ve received from both companies we are now better placed than ever before to give our people the best possible employment opportunities,” Kerry said.

We are Safer Together as industry comes of age

Twenty years ago Australian coal seam gas exploration and production activities were widely regarded as a most unconventional experiment.

Today, with Australia Pacific LNG now shipping export cargoes of liquefied natural gas to the world, the industry has come of age, and Australia is fast becoming one of the world’s leading exporters of LNG.

A key feature of Australia Pacific LNG’s success has been a continuing drive to improve safety across all aspects of the construction phase of the development of gas field facilities, the high pressure gas transmission pipeline, and the LNG facility on Curtis Island.

That focus on safety is being reinforced in the transition to long-term operations through Australia Pacific LNG’s involvement with the not-for-profit organisation Safer Together.

Safer Together brings together more than seventy-five natural gas operators and contract partner companies to develop an industry-wide approach to safety.

Australia Pacific LNG Chief Executive Officer Page Maxson said member companies have made a

formal commitment to work together to create the leadership and collaboration needed to build the safety culture right across the industry.

The Safer Together member companies have committed to develop initiatives which will deliver significant benefits across five key high-risk areas:

• Safety Leadership • Competence and Behavior • Land Transport • Process Safety • Rig Site Safety

Page represents Australia Pacific LNG on the Safety Leadership working group, which is developing an industry-wide Strategic Safety Plan.

“It’s just common sense to work together to share knowledge and develop uniform, industry-wide solutions for improving safety,” Page said. “We work in similar areas, we use similar technologies, and we face similar challenges and safety risks.”

“In terms of safety, we must be seen as one industry and not separate companies.”

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Funding Boost for Thornhill Training Centre

Thornhill opening day: Left to Right: Bradley Maher and Kevin Alley from QGC; Gidarjil Managing Director Kerry Blackman, QGC’s Joanne Pafumi; Matthew Ralph and Melanie Grills from the Origin Indigenous Engagement Team and Gladstone Regional Council Deputy Mayor Cr Matt Burnett.

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CSG: Regional benefits

5,000 hectares for environmental offsets

The growth in CSG in southern Queensland has brought substantial changes to regions where development has occurred during the construction phase, with positive effects in terms of income, ongoing jobs, and attracting young people to local communities, according to a new report.

The report - Overview and synthesis of regional economic effects of the CSG industry during the construction phase was produced by GISERA and was based on a review of studies undertaken in the Surat and Bowen Basins since the early years of CSG development.

The report found that the CSG industry’s extensive geographical footprint allowed for “a broader range of stakeholders to benefit from resource extraction, potentially affecting more evenly the initial distributions of income across regions.”

This included an influx of younger people, both male and female in the regions, due to the increased demand for employment in service and support industries.

While the reports focussed on the impact of the construction phase, it also found that as the industry moves into long-term operations,

“many labour requirements… can be sourced either from local towns or from nearby town centres.”

GISERA (Gas Industry Social and Environmental Research Alliance) is a collaborative research body funded by CSIRO, Australia Pacific LNG, and QGC to undertake publicly-reported research addressing the socio-economic and environmental impacts of Australia’s natural gas industries.

For a copy of the report or to find out more about GISERA visit www.gisera.org.au

Australia Pacific LNG has now secured 5,000 hectares of land for environmental offsets after the latest addition of an offset area on the Colamba property, 30km north east of Miles.

The Colamba offset area features brigalows scrub and wetland areas and is the fifth offset area secured across Queensland for Australia Pacific LNG.

As part of its Federal and State environmental approvals to develop the gas fields and construct the pipeline and LNG Facility on Curtis Island, Australia Pacific LNG provides biodiversity offsets to counterbalance necessary disturbance.

These offsets can involve preserving and protecting world heritage values, marine habitat, endangered and of concern regional ecosystems and threatened fauna habitat.

Origin Environment Manager Rob Ully said around 300 hectares of Brigalow vegetation will be protected on the Colamba property alongside 73 hectares of wetland area which includes habitat for eight fauna species.

Rob said the work that has gone into the offsets project over the past five years is something the team should be very proud of.

“In November 2013, the team secured the Dukes Plain property near Theodore in central Queensland, which fulfils around 75 per cent of Commonwealth and State offset requirements related to the gasfields and pipeline,” Rob said.

“This first property really set us up on the right path and we’ve continued to build on this success.”

On Curtis Island, near Gladstone, Australia Pacific LNG played a lead role in securing

landmark conservation initiatives that will see nearly two thirds of the island managed under an island-wide conservation management strategy, consistent with the island’s inherent natural values and management priorities.

Australia Pacific LNG was also the first LNG proponent to secure offset land access for relocating endangered cycads (Cycas megacarpa) the large-fruited Zamia Palm.

In addition to carefully removing and relocating mature cycads growing along the pipeline corridor, Australia Pacific LNG is working with Greening Australia to germinate more than 2,500 cycad seedlings in a specialist dry-tropics nursery.

These seedlings are growing well and are being progressively sun-hardened and planted out in the offset area.

In good hands - Jermaine Minniecon tends to Cycad seedlings at Greening Australia’s Dry Tropics Nursery in Townsville.