Gladstone LNG
| Company type | Joint venture |
|---|---|
| Industry | Liquefied natural gas |
| Founded | July 2007 |
| Headquarters | Gladstone , Australia |
Area served | Australia, international LNG markets |
| Products | Liquefied natural gas (LNG) |
| Owner | Santos Limited (30%), PETRONAS (27.5%), Total (27.5%), KOGAS (15%) |
| Website | www |
Gladstone LNG (GLNG) is a liquefied natural gas facility located in Queensland, Australia, distinguished by its role in transforming coal seam gas (also known as coalbed methane) into LNG. The project was announced in July 2007, with its inaugural LNG shipment dispatched in October 2015. Operations for the second LNG production train commenced in May 2016.
Technical features
GLNG extracts coal seam methane from the Surat and Bowen basins situated near Roma and Fairview in Queensland. This gas is conveyed through a 520-kilometer pipeline to a liquefaction facility positioned at Hamilton Point West on Curtis Island, close to Gladstone. The initial annual LNG output capacity ranged between 3 and 4 million tonnes with the first train, which doubled following the launch of the second train in 2016.
The front-end engineering and design (FEED) phase was carried out by Foster Wheeler and Bechtel. Final investment endorsements from both State and Federal Governments were secured in May and September 2010, respectively.
1 Dredging
Gladstone Harbour serves as a natural deep-water port off Queensland’s coastline, unlike Citrus Island, which lacks comparable depth. To facilitate port operations, Santos is required to dredge substantial quantities of seabed material—exceeding 60,750 cubic meters—across five berth locations. The Commonwealth government authorized the disposal of dredged sediments near the harbour entrance, approximately one kilometer from the Great Barrier Reef exclusion zone. This dredging activity has sparked environmental concerns affecting both Gladstone and adjacent Great Barrier Reef regions.
1.1 Water Quality
In 2011, fishing was prohibited for three weeks within Gladstone port after numerous dead or injured fish, turtles, and dugongs were found in the harbour. Although investigations remain incomplete, dredging is considered the probable cause. Observed declines in prawn, crab, and fish populations have been associated with increased disease incidence and mortality linked to waterborne toxins and disruptions caused by noise pollution and deteriorated water quality.
1.1.1 Turbidity
Data from the Port of Gladstone reveal that turbidity levels during dredging near Citrus Island exceeded regulatory limits. The dumping of sediments close to the Great Barrier Reef has negatively impacted coral ecosystems. A 42-day research study published in Nature reported that elevated turbidity led to partial coral mortality ranging from 2 to 10 percent, along with bleaching, loss of pigmentation, and lipid depletion across coral samples. Extended dredging operations at such proximity are likely detrimental to both coral reefs and surrounding marine species.
1.2 Toxicity of sediments
In addition to turbidity concerns, toxic sediments present further hazards. The Future Fisheries Veterinary Service (FFVS) identified that resuspension of Potential Acid Sulphate Soils (PASS) during dredging released dissolved metals such as copper, zinc, and aluminium into harbour waters. Historical data comparisons confirm these metal concentrations are a direct consequence of dredging activities, exerting significant adverse effects on marine organisms.
1.2.1 Physiological Effects
Elevated metal levels in fish can inhibit enzyme function by binding to amino, imino, and sulfhydryl groups within proteins, disrupting essential metabolic processes. These toxicants compromise immune defenses in marine fauna, heightening vulnerability to diseases while causing long-term impairment of olfactory senses critical for predator detection and alarm responses. Moreover, exposure results in damage to gill structures and adjacent tissues.
1.2.2 Alterations in Behaviour
The presence of metals in Gladstone Harbour adversely influences fish behaviour, affecting their ability to avoid predators, reproduce successfully, and engage in social interactions.
1.3 Impact of Dredging Noise on Fish
Noise generated by dredging activities, ranging from 111 to 170 dB, induces various effects on fish such as behavioural modifications, stress responses, hearing impairment, damage to auditory tissues, cellular injury, potential mortality, disruption of the lateral line system essential for sensing water movements, and detrimental effects on eggs and larvae.
1.4 Habitat Degradation
Although dredging operations avoid areas designated as nurseries for fish and crabs as well as feeding zones for dugongs and turtles, the large-scale removal of seagrass beds, mangrove forests, and mudflats has significantly compromised the sustainability of fisheries around Gladstone Harbour. Due to the interconnected nature of coastal ecosystems, the loss of habitat results in diminished fishery yields both locally and in surrounding regions. This situation is intensified because Gladstone Port contains the sole major seagrass habitat within a 170 km radius north and south. Recovery of fishery productivity following dredging activities is considered improbable.
2. Escalation of Shipping Traffic Near the Great Barrier Reef
Each year, more than 11,000 vessels traverse waters adjacent to the Great Barrier Reef, including approximately 350 bulk LNG carriers originating from Gladstone. While the impact of a single ship is minimal, the aggregated effects encompass damage from anchors and propellers, introduction of invasive species, emissions of greenhouse gases and nitrogen oxides, contamination from coal dust, discharge of sewage, and pollution from substances such as oil and heavy metals. The rise in shipping traffic also increases the likelihood of collisions with dugongs, turtles, whales, and other marine mammals while subjecting these species to heightened noise and light disturbances (refer to section 1.3).
Project Completion and Operational Phase
The first LNG shipment from GLNG was dispatched on 16 October 2015. This milestone was commemorated in Gladstone by Queensland Premier Annastacia Palaszczuk, Minister for State Development Dr Anthony Lynham, and Gladstone representative Glenn Butcher. The Malaysian LNG tanker Seri Bakti transported the cargo to clients in South Korea.
Ferry Services
At the commencement of construction in 2011, Sealink Travel Group secured a contract to provide crew transfer services between Curtis Island and the mainland. For this purpose, five EnviroCat-class vessels with a capacity of 400 passengers each were commissioned. Following project completion in 2016, the original fleet was sold:
- Capricornian Surfer: acquired by Fullers360, renamed Kekeno, now operating as a passenger ferry in Auckland.
- Capricornian Dancer: initially wet leased to Port Phillip Ferries before being sold to Fullers360 and renamed Ika Kākahi, currently serving Auckland routes.
- Capricornian Sunrise and Capricornian Sunset: transferred to SeaLink Rottnest Island operations.
- Capricornian Spirit: moved to Sydney for Manly Fast Ferry services before returning to Gladstone.
Project Partners
GLNG is developed by Australian energy firm Santos Limited under a joint venture structure with ownership stakes distributed as follows: Santos 30%, PETRONAS 27.5%, Total 27.5%, and KOGAS 15%.
See also
- Wheatstone LNG and Browse LNG projects located in Western Australia
- QCLNG and APLNG developments based in Queensland
References
Santos.com. no date. [online] Accessible at: <https://www.santos.com/wp-content/uploads/2020/02/santos-glng-project-construction-environment-management-plan-to-address-matters-of-national-environmental-significance.pdf> [Accessed 24 June 2022]. En.wikipedia.org. no date. Gladstone LNG - Wikipedia. [online] Available at: <https://en.wikipedia.org/wiki/Gladstone_LNG> [Accessed 24 June 2022]. Hunt, C., 2011. The environmental impact of Gladstone's LNG development. [online] The Conversation. Available at: <https://theconversation.com/what-is-gladstones-lng-development-really-doing-to-the-environment-3885> [Accessed 24 June 2022]. Jones, R., Giofre, N., Luter, H., Neoh, T., Fisher, R. and Duckworth, A., 2020. Coral responses to prolonged turbidity exposure. Scientific Reports, 10(1). Landos, M., 2012. Examination of aquatic animal health issues in Gladstone Harbour and surrounding waters. [online] pp. 58–66. Accessible at: <http://media2.apnonline.com.au/img/media/pdf/FFVS_Gladstone_FINAL_trustee_version.pdf> [Accessed 24 June 2022]. Bechtel Corporate. 2011. Advancing energy efficiency and cleaner fuels for Australia’s LNG export sectors. [online] Available at: <https://www.bechtel.com/projects/curtis-island-lng/> [Accessed 24 June 2022]. SantosLNG. 2022. Overview of the project. [online] Available at: <https://web.archive.org/web/20130224111120/http://www.santosglng.com/the-project.aspx> [Accessed 24 June 2022].