Presentation - Chincilla CSG Local Content Forum

Chinchilla CSG Local Content Forum
December 2014
Transition to operations
• The initial construction phase of the Queensland Curtis LNG (QCLNG)
project is nearing completion
• We are preparing to commence LNG production in a world first
• Detailed planning is underway to shift our focus from project deliverables
to efficient operating performance over a two year transition period
• We continue to invest in the communities in which we operate
2
QCLNG project – Phase I scope/status
• Upstream:
• 2,060 access agreements
• >2 000 wells available for start-up
• 3,500km gathering pipeline now laid
Curtis Island
QCLNG plant
Gladstone
• 17 field compression stations (FCSs)
• 4 central processing plants (CPPs)
• 2 major water treatment facilities
• Pipeline:
Gas collection header
Export pipeline
QGC development
QGC exploration
Chinchilla
Dalby
0
30
60
90
Kilometers
• 200 km gas collection header pipeline
• 340 km export pipeline
• LNG plant: 2 trains, 8.5 mtpa capacity
• 1.3 bcfd required for plateau production
Toowoomba
• 2 LNG storage tanks, jetty
3
Major infrastructure development
2014
Q1
Q2
2015
Q3
Q4
Q1
Q2
Q3
Upstream
Six field compressor
stations start up (FCS) (Ruby Jo)
All 6 FCSs achieved start up
Three FCS start up (for Bellevue)
Woleebee
Creek CPP
Jordan CPP
Ruby Jo CPP
Bellevue CPP
LNG
Northern Water
Treatment Plant
Complete 1st
tank hydrotest
Start
commissioning
of gas turbine generators
First LNG
Train 2 First LNG
4
Procurement strategy
• Committed to giving local, Queensland and Australian suppliers full, fair
and reasonable opportunity to participate
• Buy local where quality, competitive goods and services are available
• QGC aims to:
– Increase local supplier capability
– Develop and maintain local content in the supply chain
• Methods to drive local content:
1. Enhanced supplier capacity and engagement
2. Improved reporting, monitoring and evaluation of local content contribution
3. Major contractor compliance with local content obligations
5
Procurement strategy
• Major contractors required to support Local Content and Indigenous
Participation
• Requires delivery of plans, annual reports required on performance
and audits
THIESS
• Local supplier examples
QCLNG Upstream Compression
- P&K Clarris
Facilities PIC contract
- Assess Orr
• $72 million invested directly with
Western Downs supply chain
- Noller Construction
• $156 million invested directly in
Maranoa and Toowoomba regions
• 10% of 3,500 workforce lived locally
in Surat Basin
- South Queensland Soils
- Various service companies eg
haulage, plant hire, aggregate or
water purchase
6
Principal contracts
Timeframe
O&M work packages
Current to
6 months
Health and medical services
Road and civil construction
Camp management
Waste management
Weeds and vegetation management
Cranes and scaffolding
12 to
24 months
Core contracts in place since May 2014 this year
Opportunities in this timeframe will be:
- Scaleable increase in scope of works with existing contractors
- Sub-contracting to major contractors for capital projects
- Ongoing review of existing contracts
Next phase of development subject to sanction
7
Accessing local supply chains
1.
Pre-qualifying local suppliers
– QGC is part of the Achilles First Point Supplybase community
– Will be used as part of our supplier prequalification process
– QGC on steering committee for Achilles and is working with them to streamline
questionnaires and processes online
– Registration with QGC only via Achilles stage one is free. Suited for low risk
contractors
– Training on how to access Achilles is part of CCIQ partnership with QGC
2.
ICN Gateway
– Tender portal used by us and our major contractors
3.
Direct promotion
– Advertising tenders
– Inviting targeted pre-qualified suppliers to tender
– Sharing opportunities through local chambers of commerce
8
Developing local content
Investment in enterprise development
– Partnerships planned under new Social
Investment Program to develop entrepreneurship
culture and build the capacity of start-up SMEs
and existing small businesses
Strengthening Local Chambers Program
– Consulting support provided to 6 local Chambers
of Commerce across the Western Downs to
develop strategic plans during 2014
– New $440,000 partnership announced with
Queensland Chamber of Commerce and
Industry to continue support
Michael Leathem, TCL – small
business owner in Chinchilla directly
contracted to QGC
– Building the capacity of local Chambers of
Commerce to grow memberships and facilitate
business development through technology,
services and education
9
Total workforce numbers
16000
Contractors forecast
Employees Forecast
14000
Contractors
Employees
Steady state location
12000
Major upstream
contractors demobilise
Midstream, 7%
10000
Brisbane,
15%
8000
Major midstream
contractors demobilise
Upstream, 78%
6000
4000
2000
0
Nov-11
Nov-12
Nov-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
10
Location of Surat workforce
Forecast – December 2015
North
Central
QGC
South
142
413
134
Contractors
1,370
1,122
357
Total
1,512
1,535
491
• All numbers are indicative
• Actual number working on any one day is
subject to rosters
Around 30% of QGC
employees live locally
in the region
• Bus transfers available between Chinchilla
and Dalby and various work sites
• For safety reasons, local employees will stay
in camps while on roster when the
commuting distance creates a safety and
fatigue management risk
11
Community promotion
• Our people are encouraged to live
locally
• Range of incentives offered including
relocation support and allowances
• Role design and needs are changing
so the number required on a 24x7
basis, day and night shift basis, will
reduce once fully operational
• Need to be flexible as many skilled
employees prefer FIFO engagement
• Community welcoming booklets
developed for Wandoan and in
development for Miles, Dalby and
Chinchilla
• Social investment program focused
on regional liveability
– Improving sustainability of
community organisations
– Facilitating access to services
for residents
– Support community cohesion
12
Local career development
Education
Vocational skills training
• STEM Schools Program
commenced in 2010
• 490 local people involved in
training programs to support
Indigenous participation since
2011
• Aim to raise participation in science,
mathematics, engineering and
technology (STEM)
• Implemented in 35 state schools in
the region spanning from Dalby to
Roma and surrounding communities
• Cross CSG industry initiative
– Engineering camps, events
– Site rehabilitation projects
• BUSY at Work – over 200
apprenticeships and traineeships
supported
• Currently reviewing
apprenticeship and traineeship
opportunities in QGC for O&M
phase
– Teacher professional development
– CSG modules in curriculum
– Scholarships
13
Standardising Industry Inductions
• The safety of our workforce is our first priority
• Risks and processes in CSG industry distinct from mining
• QGC working to standardise inductions across our business
• Well Engineering team is leading the way in standardising inductions across the
industry
– Collaborating with APLNG, GLNG, Arrow and Energy Skills Queensland over
the past 12 months
– Developing an industry standard specific to drilling and completions
• Tripartite operations committee formed between QGC, APLNG and GLNG to
investigate collaboration opportunities in various aspects of our businesses
14
Future profile of QGC
• Operator producing natural gas from coal seams for domestic markets
and LNG for international markets
• Within 3 years anticipate reaching a steady state, long term workforce of
around 3,500 employees and contractors of which 78% will work
upstream
• Continuing to develop upstream infrastructure for which a contract
workforce will be required
• Operations characterised by:
– More of our people living locally in regional communities
– Local content contributions to procurement directly and indirectly
• A company which continues to work closely with and invest in the
communities in which we operate.
15

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