‐ $200 million plus micro LNG Infrastructure Investment opens near Chinchilla

‐ Provides a cleaner, cost effective domestic gas fuel opportunity for Queensland manufacturing, off grid generation and transport.

The development of a natural gas fuel network for cleaner, cheaper Australian fuel has stepped up another gear with the official opening of a dedicated micro‐LNG plant near the Queensland township of Chinchilla today.

The plant was officially opened by the Queensland Premier Campbell Newman (who used the opportunity to also launch a new Queensland Fuels and Energy strategy) BOC, a member of The Linde Group, has entered into a long‐term gas supply agreement with QGC, who supply natural gas, which BOC will liquefy, producing LNG, for a range of domestic fuel uses in the manufacturing, mining and long‐haul trucking markets.

The gas will also be available for use in the stationary energy sector and for cleaner power generation in remote communities.

The total spend for the gas, micro‐LNG plant and supply chain infrastructure by BOC will be over $200 million over 15 years , producing up to 50 tonnes of LNG per day into the domestic market, which is the equivalent of 70,000 litres of conventional diesel per day.

BOC South Pacific Managing Director Colin Isaac said the plant heralded a positive new era for cleaner fuel in Queensland that also utilised Australian design and construction expertise in LNG fuel production.

“This plant marks the start of a new industry for Queensland giving local and interstate manufacturing, off grid electricity generation and heavy transport users the opportunity to switch to LNG, an environmentally cleaner fuel than current alternatives,’’ Mr Isaac said.

“LNG produces up to 25% fewer emissions than diesel when used for transport and is a proven, safe alternative to other fossil fuels. It is also ideal for marine vessels and is Great Barrier Reef friendly because unlike diesel and marine oil it evaporates if spilled with no toxic effects.

Mr Isaac thanked the Queensland Premier for his Government’s leadership and willingness to support the opportunity to facilitate locally produced LNG in Queensland’s fuel mix, utilizing Queensland’s natural advantage of an abundant natural gas supply.

“Through this exciting project being launched today in the Surat Basin, Queensland is recognising its natural gas advantage and will become one of the leaders in supply of cleaner, cost effective alternatives to imported diesel,” Mr Isaac said.

“BOC and it’s subsidiary ELGAS already has off take customers in local food manufacturing (including Nestle & Buderim Ginger), mining and other sectors who want to utilize locally produced natural gas fuels as part of their contribution to cost effective reduction of greenhouse gases and other pollutants.

“BOC is proud to be a leader in the LNG space. We are innovating in new LNG applications, such as stationary energy and generation in remote communities and we hope in time to continue to progress an ‘LNG highway’ for the heavy transport sector along Australia’s eastern seaboard.”

BOC pioneered LNG in Australia with its Dandenong plant in Victoria over 30 years ago. BOC has also developed the micro‐LNG plant concept with its Tasmanian plant which was commissioned in 2010.

“As we consider where to build future LNG plants, we are encouraged that the Queensland Government recognises the opportunity and need for Queensland to ensure it has cleaner and

more diverse fuel options for the future. Natural gas fuels such as this locally produced LNG are good for the environment and are good for Australian skills and jobs, Mr Isaac said.

The plant will use natural gas fed into the Roma – Brisbane pipeline by QGC. It is the same gas Queenslanders use every day for a variety of industrial purposes and to cook meals and heat their homes.

QGC Technical and Commercial Director Walter Simpson said the natural gas company was particularly proud to have played a part in this partnership of innovation.

“BOC’s plant and customers, together with natural gas from QGC, have brought an entirely new industry to Queensland,” Mr Simpson said.

“This is yet another example of how the advantages of natural gas development in Queensland are flowing through to other parts of the community.

“Meeting gas supply commitments under long term contracts with domestic customers, such as BOC, are our first priority for production.

“Over the next few years, we will be ramping up production in order to also keep our two LNG trains full at Curtis Island.”

Using proven and safe technology, BOC will liquefy the natural gas in a refrigeration process and the resulting LNG will be transported in specially designed vacuum tankers to customers and a network of refuelling stations from Queensland to Victoria.

The plant will run 24 hours a day, seven days a week, with local operators supported from BOC’s Remote Operations Centre located in Sydney.

“The local plant will generate long term economic and environmental advantages for all Queenslanders producing a cleaner fuel alternative to diesel, which produces significantly less greenhouse gases, less sulphur, nitrogen oxides and particulate matter,’’ Mr Isaac said.