Liquefied natural gas in Queensland - where will the gas come from?

Image source: Parliamentary Library,
source data courtesy of Geoscience Australia

The production of liquefied natural gas (LNG) from Australia has become an important export industry. Sales from three existing LNG projects (the North West Shelf, Darwin LNG and Pluto LNG) earned $14.3 billion in export revenue in 2012-13, according to the Bureau of Resources and Energy Economics (BREE). Increased global demand for gas is driving investment in Australia to open new LNG projects, exploiting gas resources offshore from Western Australia and the Northern Territory. In addition, onshore coal seam gas (CSG) resources will be used to develop at least three (and possibly up to seven) new LNG projects at Gladstone, in Queensland – but where will all the gas come from?

Is this the end of coal seam gas for now?

Drilling a gas well
Image source: Wikimedia commons

Coal seam gas (CSG) has become a divisive issue in recent times, particularly in rural and regional areas of Queensland and New South Wales. Despite the regulation of CSG being primarily a State responsibility, several private members have introduced bills that aim to exert greater Commonwealth controls over CSG. This FlagPost will examine the latest bill, which was introduced into the House of Representatives on the 11th of February. It could have the effect of stopping all new coal seam gas developments across Australia for at least two years.

The deeper worries about coal seam gas

Image source: WikiMedia Commons

One-third of Eastern Australia cooks its breakfast, warms its homes, and generates its power from natural gas, the main component of which is methane, supplied by coal seam gas (CSG) operations. Our need for natural gas has allowed CSG operations to grow, but critics contend that this has not always been accompanied by sufficient understanding of the social and environmental implications. Ground and surface water contamination, water consumption, and waste disposal are but a few issues fuelling the ongoing debate. However, reports of deeper risks are now surfacing.

Coal seam gas: should the gates be locked?

Coal seam gas! It’s controversial and in the news every day. Why has it suddenly become an issue? What is going on? The exploration for and development of coal seam gas (CSG) is a relatively new and small activity in Australia, but the size of the estimated CSG resource suggests that it could grow to become a major industry, and an important new energy export sector. But only if it can overcome some problems.