Western Downs shaping up as new economic powerhouse

The Western Downs is set to become a new economic powerhouse of the state with rapidly developing coal seam gas industry playing an important role, Mines and Energy Minister Geoff Wilson said today.

Mr Wilson inspected gas fields and production facilities around Miles, Chinchilla and Dalby, which highlight the tremendous potential of the region.

“The Surat Energy Resources Province, which stretches west from Toowoomba to Mitchell and south from Theodore to the New South Wales border, is rich in energy resources,” Mr Wilson said.

“The exploration and development activity underway will provide a tremendous boost to the regional economy in the future.

“This source of gas will help us deal with the challenges of climate change.

“Coal seam gas is a clean energy source and it’s here in abundance in the Surat Energy Resources Province,” Mr Wilson said.

Minister Wilson said the Bligh Government was investing in a range of initiatives to encourage new technology, renewable energy and smarter energy use.

“Our $40 million Queensland Energy Policy has helped diversify the state’s generation mix with hydro, gas, biomass, wind and bagasse.

“Our world-leading 13% gas scheme requires retailers and other large electricity users to source at least 13% of their electricity from gas-fired generation. Under ClimateSmart 2050, we will increase this figure to 18% by 2020.

“Queensland has around 3,000 megawatts of gas-fired generation projects on the drawing board.

“There are a number of gas-related projects that reduce greenhouse gas emissions including the Swanbank E power station which is the country’s newest and most advanced gas-fired power station and Swanbank B’s landfill gas supply that generates green energy.

“Some projects are big, some are small, and most are cutting edge technology. All up, they are saving tens of thousands of tonnes of greenhouse gas emissions.

“Gas is destined to play a significant role in meeting the energy needs of our rapidly-growing population.

Mr Wilson visited Queensland Gas Company’s Berwyndale South coal seam gas fields and the Kenya field, a joint project involving Queensland Gas Company and Origin Energy.

“Coal seam gas projects have already yielded around $1 billion worth of development across the state and they look set to continue to provide investment of at least $160 million a year.

“The Surat Energy Resources Province has been identified by the Department of Mines and Energy as having significant potential for future energy projects and infrastructure development.

“It’s set to become a significant energy producing region. And that means jobs for local workers and a boost to local economy.

“Local communities have been hit hard by the drought and the potential for the Surat Energy Resources Province to become an economic powerhouse is a real shot in the arm for towns like Dalby, Miles and Chinchilla.

Coal seam gas companies are active in the Surat Basin, which has an estimated total contained coal seam gas resource exceeding 40,000 petajoules.

“This has created a hive of activity, leading to significant investment in gas-fired electricity generation,” he said.

“Earlier this year, Origin Energy decided to build a $780 million, 630 megawatt gas-fired combined cycle power station at Braemar.

“ERM has announced plans to expand the Braemar Power Station by a further 450 megawatts.

“The Queensland Gas Company has also announced its intention to develop the Condamine Power Station, a 135-megawatt combined cycle plant about eight kilometres east of Miles.

“There are a number of other proposals on the table from private investors, including Origin Energy’s 1,000 megawatt Spring Gully power project, and plans by Liquegas to build and operate a 100-tonne a day liquefied natural gas plant at Daandine, fed by Arrow Energy coal seam gas.

“Gas could hold the key as a transitional fuel source while emerging renewable energy and clean coal technologies are being developed,” Mr Wilson said.

Media Inquiries: Minister’s Office 3225 1819