Agreement part of LNG development decision

A group of gas companies working in Australia said Tuesday they were part of a decision to set aside most of the country's Curtis Island as a preserve area.

BG Group, Santos GLNG and Australia Pacific LNG said they were working through a consortium to "return the last major area of non-conservation land on Curtis Island, which is currently a cattle farm, to its natural habitat."

Australian energy company Santos leads an $18.5 billion project designed to convert coal seam natural gas to liquefied natural gas for exports to the global market.

The project is fed by a 260-mile underground pipeline from the Bowen and Surat basins in Queensland. Santos says first deliveries of LNG are scheduled for next year.

The companies involved in other LNG projects there said 59 percent of Curtis Island is now reserved as environmentally-protected land. That's compared to the 2 percent designated for LNG development on the southern tip of the island.

All three LNG projects received consent from the Queensland and Australian governments for developing provided they take steps to offset any potential environmental damage.