Published Sunday, 03 February, 2008 at 12:00 AM
Premier
The Honourable Anna Bligh
BLIGH WELCOMES $8 BILLION GAS INVESTMENT
Queensland Premier Anna Bligh has welcomed news that the Queensland Gas Company (QGC), has announced an alliance with global energy giant BG Group to build a world-scale LNG plant in Queensland using QGC coal seam gas as feedstock.
“We are potentially talking about an $8billion investment program offering massive job opportunities and a royalties windfall for the State,” said the Premier.
“To have another major mineral export opportunity in this State is welcome.
“LNG is also a key transition fuel as we move away from traditional fuels. For example a gas-fired power station emits half the greenhouse gases of a coal-fired station.
“As well coal seam gas contains only about 3% carbon dioxide and the carbon dioxide produced can be pumped back into the coal seam as part of the gas extraction process.
“Another plus is that part of the gas extraction process produces large volumes of underground water of bore-water quality, some of which can be used as town water after further processing.
“The coal seam gas industry owes, in part, its beginnings to the Beattie Government ‘s original 13% gas policy requirement.
“Our raising that to 18% has played a part in boosting investor confidence, which has lead to increased exploration efforts resulting in an announcement like today’s.
“My Government’s world-leading 13% gas policy requires retailers and other large electricity users to source at least 13% of their electricity from gas-fired generation. Under ClimateSmart 2050, this will increase to 18% by 2020.
“The two companies have committed to a long-term alliance for the development of an LNG project producing 3 to 4 million tonnes per annum for the export market,” she said.
QGC’s agreement with BG Group covers an estimated $8 billion development programme, including a 380 kilometre pipeline to port and construction of a world scale LNG plant.
“The supply of 190 petajoules a year of coal seam gas to feed the project is to be sourced from QGC’s Surat Basin tenements, presently supplying the south east Queensland domestic market.
“Again the Surat Basin is proving to be an economic dynamo. The development success of the Bowen Basin from the 1960s onwards is now primed for replication in the Surat Basin.
“Today’s news reinforces that the Surat Minerals Province - centred on a triangle west from Toowoomba to Taroom/Injune down to the New South Wales border – is going to critical in future State development.
“The Province has significant development opportunities in thermal coal seam gas, thermal coal, and coal seam gas water.
“By the year 2030, it is predicted to provide additional gross regional (Southern inland Queensland) product of more than $10 billion a year.
“And as a province predicted to create an extra 16,000 fulltime jobs by 2030.
By 2030 the population in the Surat Energy Resources Province is predicted to reach 260,000.
The global demand for LNG is forecast to more than double from 150 million tonnes per annum (mtpa) in 2006 to 400 mtpa by 2015.
Users in North America, Europe, and Asia are seeking guaranteed supplies of LNG because of the greenhouse-friendly nature of this energy source, compared with coal.
Media contact: Premier’s Office 3224 4500
“We are potentially talking about an $8billion investment program offering massive job opportunities and a royalties windfall for the State,” said the Premier.
“To have another major mineral export opportunity in this State is welcome.
“LNG is also a key transition fuel as we move away from traditional fuels. For example a gas-fired power station emits half the greenhouse gases of a coal-fired station.
“As well coal seam gas contains only about 3% carbon dioxide and the carbon dioxide produced can be pumped back into the coal seam as part of the gas extraction process.
“Another plus is that part of the gas extraction process produces large volumes of underground water of bore-water quality, some of which can be used as town water after further processing.
“The coal seam gas industry owes, in part, its beginnings to the Beattie Government ‘s original 13% gas policy requirement.
“Our raising that to 18% has played a part in boosting investor confidence, which has lead to increased exploration efforts resulting in an announcement like today’s.
“My Government’s world-leading 13% gas policy requires retailers and other large electricity users to source at least 13% of their electricity from gas-fired generation. Under ClimateSmart 2050, this will increase to 18% by 2020.
“The two companies have committed to a long-term alliance for the development of an LNG project producing 3 to 4 million tonnes per annum for the export market,” she said.
QGC’s agreement with BG Group covers an estimated $8 billion development programme, including a 380 kilometre pipeline to port and construction of a world scale LNG plant.
“The supply of 190 petajoules a year of coal seam gas to feed the project is to be sourced from QGC’s Surat Basin tenements, presently supplying the south east Queensland domestic market.
“Again the Surat Basin is proving to be an economic dynamo. The development success of the Bowen Basin from the 1960s onwards is now primed for replication in the Surat Basin.
“Today’s news reinforces that the Surat Minerals Province - centred on a triangle west from Toowoomba to Taroom/Injune down to the New South Wales border – is going to critical in future State development.
“The Province has significant development opportunities in thermal coal seam gas, thermal coal, and coal seam gas water.
“By the year 2030, it is predicted to provide additional gross regional (Southern inland Queensland) product of more than $10 billion a year.
“And as a province predicted to create an extra 16,000 fulltime jobs by 2030.
By 2030 the population in the Surat Energy Resources Province is predicted to reach 260,000.
The global demand for LNG is forecast to more than double from 150 million tonnes per annum (mtpa) in 2006 to 400 mtpa by 2015.
Users in North America, Europe, and Asia are seeking guaranteed supplies of LNG because of the greenhouse-friendly nature of this energy source, compared with coal.
Media contact: Premier’s Office 3224 4500