Queensland gas scheme proves a winner

Queensland’s 13% Gas Scheme has been an outstanding success, sparking an estimated $1 billion of coal seam gas development since 2000.

Mines and Energy Minister Geoff Wilson said in Roma today the coal seam gas sector is expected to be the catalyst for continuing investment of $160 million a year.

“Most of the investment will be in regional areas of the state,” Mr Wilson said.

Mr Wilson was inspecting Origin Energy’s Spring Gully coal seam gas facility near Roma, which is being further expanded with a $52.8 million injection that will create 20 new wells and a reverse osmosis water treatment plant.

“Origin’s commitment to the Spring Gully coal seam gas field is now $360 million, which is a pivotal investment in the economic growth of this region,” he said.

Mr Wilson said the 13% scheme’s first year in 2005 showed how successful the Queensland Government initiative had been in driving the state’s burgeoning coal seam gas industry and diversifying the state’s energy fuel sources.

“The Scheme commenced in January 2005 and requires electricity retailers and other liable parties to source 13 percent of the electricity they sell or use in Queensland from gas-fired generation,” Mr Wilson said.

“In the scheme’s first year of reporting, eight generators were accredited to operate 10 gas-fired power stations representing in excess of 1600 megawatts (MW) of generation capacity.

“This is the equivalent to about half the average electricity demand of south-east Queensland.

“By the 31 August 2006, the scheme had registered 5.25 million gas electricity certificates, representing 5.25 million hours of gas-fired generation.

“The scheme and its requirements for gas-fired generation has been the foundation of Queensland’s mushrooming coal seam gas industry.

“In 2000, when the Scheme was announced, coal seam gas was supplying around 2 petajoules of gas a year, or around 2 percent of Queensland’s gas requirements.

“Now, in 2007, coal seam gas will supply about half, or around 60 petajoules, of Queensland’s gas.

“Growth projections are equally robust.

“By 2010 about 70% of Queensland’s gas market will be supplied from coal seam gas.

“Not only has the scheme boosted the coal seam gas industry and provided jobs and development in regional Queensland, it is expected to reduce the growth of Queensland’s greenhouse gas emissions by approximately 26 million tonnes over the 15-year life of the scheme,” he said.

Mr Wilson said the 13% Gas Scheme was continuing to drive gas-fired generation.

“When the scheme was announced in 2000, Queensland’s gas-fired generating capacity was about 900MW,” he said.

“The commissioning in 2006 of the 450MW Braemar Power Station, west of Dalby, brought Queensland’s gas-fired power station capacity to over 2000MW and there is at least as much gas-fired generating capacity under development or under consideration in Queensland,” Mr Wilson said.

Media inquiries: Brooke Johnson (07) 3224 7332