Queensland Gas Company is a rapidly-evolving integrated energy business strategically positioned to meet rising demand for its abundant coal seam gas, cleaner power and ample water.

Since listing on the Australian Stock Exchange in 2000, QGC has become the country’s leading specialist coal seam gas producer, one of Queensland’s largest companies and an award-winning business noted for nimble and innovative action. It has a workforce of more than 240 people.

The qualities and depth of QGC’s assets and management have been recognised by BG Group (formerly British Gas), a global energy company seeking to partner with QGC to export gas to higher-value overseas markets through the Queensland Curtis LNG (QCLNG) Project. On 28 October, the Boards of BG Group and QGC announced that they had agreed the terms of a recommended transaction under which BG Group would offer to acquire all the issued shares in QGC at $5.75 per share by means of an unconditional on-market takeover bid on the Australian Securities Exchange.

In June 2008, QGC was admitted to the S&P/ASX 100 index and at the close of trade on 30 October, QGC had a market capitalisation of $5.4 billion. QGC has been confirmed by Link Market Services as the standout leader in the S&P/ASX 100 in terms of Total Shareholder Return over both one and two years to 30 June.

QGC has dedicated a significant proportion of its fast-growing coal seam gas reserves in the Surat Basin to meet Australia’s energy needs. These world-class reserves are projected to supply about 20 per cent of Queensland’s domestic gas market in 2009.

The Company’s strengths are underpinned by Queensland Government policy, firm long-term contracts, Australia’s move to cleaner, more efficient fuel sources and the advent of a national carbon trading scheme.

In the world-scale QCLNG Project, QGC and BG Group are seeking approval to develop a potential capacity of up to 12 million tonnes a year of liquefied natural gas (LNG) to be produced on Curtis Island, near the city of Gladstone.

The LNG alliance involves targeting more than 7,000 PJ of 2P reserves, construction of a 380km pipeline to Gladstone, development of an LNG terminal and about 4,400 new jobs. The project contractor, Bechtel Oil, Gas & Chemicals, Inc., is developing the front-end engineering and design (FEED) process for a two-train project. The first production train will export 3 to 4 million tonnes a year.

QGC is scheduled to join the National Electricity Market in February, when the Company will be supplying coal seam gas to its new Condamine Power Station. The ground-breaking 140 MW power station will produce electricity with relatively lower emissions.

In 2008, the Company has made two agreed takeover offers, securing control of Sunshine Gas, a Queensland coal seam gas explorer and developer with more than 30,000sq km of acreage in the Surat and Bowen basins, and Roma Petroleum. QGC has also acquired a major shareholding in Victoria Petroleum. All three companies are expected to significantly expand QGC’s existing coal seam gas assets.

Innovation is the Company’s core value, driving the development of Condamine Power Station, QGC’s unique well-completion technique and its approach to water yielded during the release of coal seam gas. QGC invests in applications for large volumes of coal seam water, which has the potential to help drought-affected communities, towns and farms in the Surat Basin.