Chinese Firm to Take $2b Stake in Gladstone LNG Project

A $2 billion stake in a central Queensland liquefied natural gas (LNG) project has been earmarked for sale to a Chinese corporation.

International gas company BG Group has announced it has signed an agreement with China National Offshore Oil Corporation for the sale of a $2 billion interest in the Queensland Curtis LNG project at Gladstone.

Construction of the project to convert coal seam gas to LNG for export began in 2010.

It is one of Australia's biggest infrastructure projects, expected to cost about $20 billion before it is completed in 2014.

BG's Australian business, QGC, will remain the majority owner of the project and retain all of the LNG tanks, the jetty on Curtis Island and the pipeline network.

The sale will be subject to government and regulatory approval.