Queensland’s Burgeoning LNG Industry
Whilst Chevron’s Gorgon project has garnered most, if not all, of the nation’s attention, many don’t realise that the contracts already signed for LNG projects in Queensland’s Surat Basin are actually more than that of Gorgon.
In fact, Queensland’s burgeoning LNG industry will offer as many as 18,000 direct and indirect jobs, including over 4,300 in the Darling Downs South West region alone. If all of Queensland’s projects materialise, they will have the potential to export in excess of 50m tonnes of LNG per annum.
So...what is LNG?
It starts with Coal Seam Gas (CSG) - a predominantly methane gas stored within coal deposits or seams by pressure and water. Because coal has many fractures and a large internal surface area, it can potentially hold large volumes of gas. Coal extraction is actually not required to recover CSG.
Coal Seam gas is extracted from the fields in the Surat and Bowen Basins and piped to a LNG facility near Gladstone. At the LNG facility, the gas is then reduced in temperature to -161 degrees celcius, liquefied and stored at normal atmospheric pressure, providing a safe way to ship bulk supplies.
A large proportion of the commercial coal seam gas production comes from the Bowen Basin areas of Moranbah, Moura, Fairview, Spring Gully, Peat and Scotia and the Surat Basin areas of Roma, Dalby, Chinchilla and Emerald – and is close to existing major gas pipelines. This makes it an attractive energy source for power station operations, large industrial users and gas retailers.
Many of the projects include piping coal seam gas from the Basin areas to Gladstone or Abbot Point, liquefication of CSG to produce LNG and export of LNG to international markets. Essentially, there are eight major projects – worth more than $40b in development.
GLADSTONE LIQUEFIED NATURAL GAS PROJECT (GLNG)
Partners Santos and Petronas propose to build an LNG plant on Curtis Island. Preparations are underway and Santos has been recruiting solidly all year, having just opened a purpose-built office premises in Brisbane. The first LNG cargo is expected in 2014.
The project includes the development of gas fields in the Bowen and Surat Basins and the construction and operation of a 450km gas pipeline to Gladstone, employing some 3,000 in construction at its peak.
QUEENSLAND CURTIS LNG
QGC Ltd, a wholly owned subsidiary of BG Group plans to develop a LNG plant on Curtis Island also. The first LNG cargo is expected for late 2013.
The project includes development of CSG fields around the Miles in the Surat Basin and the construction and preparation of a 380km pipeline to Gladstone, generating some 3,000-4,000 jobs in construction and 800 jobs post-construction.
GLADSTONE LNG Pty Ltd
LNG Limited and Arrow Energy propose to develop a LNG plant at Fisherman’s Landing in Gladstone. The first LNG cargo is scheduled for 2012.
The project includes a 470km long pipeline and the development of Arrow’s CSG fields around Dalby in the Surat Basin.
AUSTRALIA PACIFIC LNG PROJECT
This development is a joint venture between Origin and ConocoPhillips. Also proposing to build an LNG plant on Curtis Island, the first LNG cargo is scheduled for 2014.
The project also includes the further development of CSG fields and the construction and operation of a 470km pipeline to Gladstone. The project is expected to generate 5,000 construction jobs and 1,000 permanent jobs.
SHELL AUSTRALIA/ARROW
Shell Australia and Arrow Energy propose to develop a LNG plant on Curtis Island.
Shell has signed an agreement with Gladstone Ports Corporation for an exclusive right to investigate a site on Curtis Island for a LNG plant.
SOJITZ CORPORATION
Proposing a mid-scale LNG plant at Fisherman’s Landing, Gladstone which will produce 0.5Mtpa of LNG, Sojitz are aiming for a first cargo as early as 2012.
IMPEL (SOUTHERN CROSS LNG)
Impel’s Southern Cross LNG project proposes to construct an open-access LNG terminal on Curtis Island.
The project also includes construction of an open-access 400km pipeline to Gladstone. Production is expected to start in 2013.
ENERGY WORLD CORPORATION
Proposing to construct a mid-scale LNG plant at Abbot Point near Bowen, Energy World Corporation’s project will also include the development of tenures in the Cooper Basin near Eromanga and the construction/operation of a pipeline to Abbot Point. Production is expected to start in 2012.
source: Energy Skills Queensland