Veolia Water Wins €650 Million Coal Gas Contract

Mon Apr 15, 2013 2:59am EDT

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PARIS--(Business Wire)--
Regulatory News : 

Veolia Environnement (Paris:VIE) : 

QGC, a 100% subsidiary of BG Group, has just signed a 20-year contract with
Veolia Water to manage the three water treatment plants at its coal gas
production sites in the Surat Basin, southeast Queensland (Australia).

Following the international call for proposals published by QGC, a 100%
subsidiary of BG Group, one of the world`s leading oil and gas companies, Veolia
Water won an estimated cumulated total turnover of €650 million contract to
treat and recycle the water from the coal gas wells. This 20-year contract also
includes an option for a five-year extension. 

Competing against three other service companies, Veolia Water was selected by
QGC because of its unique expertise in managing the complete production water
treatment cycle in the complex area of non-conventional hydrocarbons. Veolia
Water`s solid presence in Queensland was also a deciding factor in winning this

Starting in June 2013, Veolia Water will be responsible for managing the three
water treatment plants at the Surat Basin coal gas extraction site. The gas
field operated by QGC covers an area of 20,000 km2 and includes plans for
drilling 6,000 wells by 2030. Veolia Water will treat the production water from
these 6,000 wells as they enter production. In all, almost 200,000 m3 of
production water will be treated each day with the ongoing guarantee of very
high quality at the plants` outlets. 

With a high salt content, the production water - pumped up from the wells
together with the methane - must undergo complex treatment before being reused
by industrial or agricultural applications. The waters must comply with the
stringent standards applied by the Queensland government . 

"For Veolia Water, the non-conventional gas market will be one of the most
active segments in the coming years," says Régis Calmels, Senior Executive Vice
President in charge of Asia. "There will be major opportunities in Australia
which has the world`s third largest coal; gas deposits after the United States
and Canada. In Australia, the Queensland deposits are among the biggest of any
of the continent country`s states." 

QGC which has already invested a lot in Australia since 2008, is stepping up a
gear. It intends financing a project to extend coal gas extraction in the Surat
Basin and build a gas liquefaction plant on the east coast 540 kilometers away.
Called the Queensland Curtis LNG Project, it will convert the coal gas into
liquefied natural gas. This LNG will then be exported to the Asian (Japan, China
and Singapore) and Chilean markets, where the demand for energy is constantly on
the rise. 

"This operation contract is one of the largest we have ever signed with an
industrial concern," says Jean-Michel Herrewyn, Chief Executive Officer of
Veolia Water. "It is recognition of our expertise in the highly technical area
of non-conventional gases and gives a major boost to our new strategy of
achieving 50% of our revenues with industry clients. Given growing energy needs
and increasing awareness of environmental responsibility, I have no doubt that,
Veolia will be signing more and more contracts of this type." 


Veolia Water, the water division of Veolia Environnement, is the world leader in
water and wastewater services. Specialized in outsourcing services for municipal
authorities, as well as industrial and service companies, it is also one of the
world`s major designers of technological solutions and constructor of facilities
needed in water and wastewater services. With 89 094 employees, Veolia Water
provides water service to 100 million people and wastewater service to 71
million. Its 2012 revenue amounted to € 12,078 billion.

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With 220,000 employees*, the company has
operations all around the world and provides tailored solutions to meet the
needs of municipal and industrial customers in three complementary segments:
water management, waste management and energy management. Veolia Environnement
recorded revenue of €29.4 billion* in 2012.

(* ) Excluding VeoliaTransdev employees and revenues currently under divestment

Important Disclaimer

Veolia Environnement is a corporation listed on the NYSE and Euronext Paris.
This press release contains "forward-looking statements" within the meaning of
the provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These statements are based on management`s current expectations or beliefs and
are subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements, including the risks described in the documents Veolia Environnement
has filed with the U.S. Securities and Exchange Commission. Veolia Environnement
does not undertake, nor does it have, any obligation to provide updates or to
revise any forward-looking statements. Investors and security holders may obtain
a free copy of documents filed by Veolia Environnement with the U.S. Securities
and Exchange Commission from Veolia Environnement. 

Press release also available on our web site:

Veolia Environnement
Analyst and institutional investor contact:
Ronald Wasylec, +33 1 71 75 12 23
US Investors contact:
Terri Anne Powers, Tel +1 312-552-2890

Copyright Business Wire 2013

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