QGC, BOC sign deal to produce LNG from coal seam gas

This is a joint venture between the Queensland Gas Company and gas company BOC. This plant will provide LNG to create fuel for trucks.


Premier Anna Bligh said it could be the start of a new industry, leading to heavy transport switching from diesel to LNG.

"LNG produces up to 25 per cent fewer emissions than diesel and is a proven safe alternative to other fossil fuels,'' she said.

"Through this agreement, Queensland will join the rest of Australia, as BOC develops a network of fuelling stations across the country for vehicles converted to run on LNG.''
Ms Bligh said QCG has agreed to supply gas to BOC from July 2011 and if the companies meet that deadline, Queensland will become the first in Australia to produce LNG from coal seam gas.

The plant will be built next to the Condamine Power Station, west of Chinchilla, with construction expected to start early next year.