The BG Group has decided to halt the construction of the coal seam gas pipeline of its Australian arm QGC. The $15 billion worth Queensland Curtis Island coal seam gas to LNG project has run into a wall thanks to some of its environmental management plans having not been approved. QCG made the announcement about halting work on the pipeline last Thursday.
QGC senior vice-president Jim Knudsen said that its contractor, MCJV, might have failed to adhere to the environmental conditions imposed by the federal and Queensland governments. This came to light after an internal review was conducted once MCJV cleared a six km by 40 meter area for the pipeline near Dalby.
Jim Knuden said that they did not believe that the clearing has an adverse impact on protected plants and animals. He added that the potential breach did not affect the safety of people either but the company stopped work as it was committed to doing the right thing.
Add to this the fact that last week there were several people standing before the bulldozers trying to get to the worksite in protest against the coal seam gas development. Mr Knuden said that the company took its obligations seriously to meet the more than 1500 state and federal conditions on the QC LNG project. Work on the project will remain suspended until a compliance review is completed.