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New development of Queensland CBM extraction

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World Coal,

BG Group has issued a statement confirming that QGC Pty Ltd and its joint venture partners China National Offshore Oil Corp. and Tokyo Gas have agreed a two-year development of coalbed methane extraction – which is called coal seam gas (CSG) in Australia – west of Wandoan in Queensland, Australia.

The AUS$1.7 billion project, known as Charlie, follows receipt of federal and state government environmental approvals and will help support gas production in the area. It will involve the construction of 300 – 400 wells, a large field compression station and associated pipelines and facilities, which will feed into existing gas processing and water infrastructure at Woleebee Creek.

“This is a vote of confidence in the secure, long-term future of Queensland’s natural gas industry, which will employ Queenslanders for many years to come,” said Tony Nunan, Managing Director of QGC. “The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1600 construction jobs and business opportunities during the two-year project.”

The works are part of the continuous development of QGC’s tenements in the Surat Basin to sustain natural gas supply to both domestic customers and the two-train Queensland Curtis LNG (QCLNG) liquefaction plant on Curtis Island, near Gladstone. QGC has appointed Leighton Contractors Pty Limited as the main works contractor. Development and construction is set to begin immediately.

The announcement comes as Senator Glenn Lazarus, a prominent critic of the CSG and unconventional gas industry in Australia, introduced a measure into the Australian Senate that would set up an enquiry into the industry – a move that Australian Petroleum Production and Exploration Associated described as “politically motivated and costly.”

“The Senate enquiry announced today will cover issues which has already been exhaustively investigated by numerous independent or parliamentary enquiries,” said Malcolm Roberts, CEO of the APPEA. “The gas industry is confident that the facts will show and industry which is safe, responsible and enormously beneficial to Australia, especially to regional communities.

According to the APPEA, the Queensland gas industry – which sees CSG extracted and then exported as LNG - is worth AUS80 billion.

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