Coal Seam Gas (CSG / Liquefied Natural Gas (LNG)
Domestically, gas is an important energy resource for Queensland and through the Queensland Gas Scheme has been recognised as the key transitional fuel to a lower carbon intensity economy. Due to its low greenhouse gas emissions relative to other fossil energy sources, gas will play an increasingly significant role as a fuel source for electricity generation, industrial processes, business and residential customers. Under the State initiative of the Climate Smart 2050 policy, Queensland’s 13% Gas Scheme will increase to 18% by 2020, fuelling further development of the demand for cleaner, lower emissions fuel through the development of reliable gas fired power stations.
Rising global demand for energy from population growth and developing countries, and the increasing demand for cleaner fuels to reduce greenhouse gas emissions will be the catalyst for significant development of a liquefied natural gas (LNG) export industry in Queensland, using coal seam gas (CSG) as the feedstock. In 2007, global demand for LNG was 175 million tonnes with the Asia Pacific region accounting for 65% of this trade. Indicative of this growing demand, the CSG Industry in Australia has experienced outstanding growth in coal seam gas production. Rapid expansion of the industry into Queensland is imminent with six LNG projects to export gas from Gladstone having been announced since May 2007. Gladstone will become the first LNG centre in the world to use coal seam gas to supply a major LNG facility. The first LNG train is expected in 2011/12 with exports expected to reach in the region of 37 Mtpa of LNG within 20 years, double the anticipated capacity of the Eastern Australian domestic market. From 2014 onwards, the industry’s production of LNG is likely to enter a period of rapid expansion.
CSG is a form of natural gas trapped in coal beds by water and ground pressure. CSG refers to the methane gas lining the open fractures between the coal (called the cleats) and the pores within the coal (called the matrix). CSG is then liquefied to produce LNG. CSG is an emerging energy source around the world and is in abundance in Queensland. Most of Queensland's CSG is close to existing major gas pipelines, making it an attractive energy source for power station operators, large industrial users and gas retailers. A large proportion of the commercial coal seam gas production comes from the Bowen Basin areas of Moranbah, Moura, Fairview, Spring Guly, Peat and Scotia and the Surat Basin areas of Roma, Dalby, Chinchilla and Emerald. Many of the projects include piping CSG from the Basin areas to Gladstone or Abbot Point, liquefaction of CSG to produce LNG and export of LNG to international markets. Together, the CSG/LNG Industry will generate significant positive economic and social benefits on a national scale for Australia, at the State level and for regional economies of Mackay-Fitzroy- Central West, predominantly Gladstone and Darling Downs-South West including Roma, Dalby and Chinchilla and Moranbah (Peak Downs vicinity).
CSG/LNG Projects in Queensland
Image supplied courtesy of Arrow Energy
Domestically, gas is an important energy resource for Queensland and through the Queensland Gas Scheme has been recognised as the key transitional fuel to a lower carbon intensity economy. Due to its low greenhouse gas emissions relative to other fossil energy sources, gas will play an increasingly significant role as a fuel source for electricity generation, industrial processes, business and residential customers. Under the State initiative of the Climate Smart 2050 policy, Queensland’s 13% Gas Scheme will increase to 18% by 2020, fuelling further development of the demand for cleaner, lower emissions fuel through the development of reliable gas fired power stations.
Rising global demand for energy from population growth and developing countries, and the increasing demand for cleaner fuels to reduce greenhouse gas emissions will be the catalyst for significant development of a liquefied natural gas (LNG) export industry in Queensland, using coal seam gas (CSG) as the feedstock. In 2007, global demand for LNG was 175 million tonnes with the Asia Pacific region accounting for 65% of this trade. Indicative of this growing demand, the CSG Industry in Australia has experienced outstanding growth in coal seam gas production. Rapid expansion of the industry into Queensland is imminent with six LNG projects to export gas from Gladstone having been announced since May 2007. Gladstone will become the first LNG centre in the world to use coal seam gas to supply a major LNG facility. The first LNG train is expected in 2011/12 with exports expected to reach in the region of 37 Mtpa of LNG within 20 years, double the anticipated capacity of the Eastern Australian domestic market. From 2014 onwards, the industry’s production of LNG is likely to enter a period of rapid expansion.
CSG is a form of natural gas trapped in coal beds by water and ground pressure. CSG refers to the methane gas lining the open fractures between the coal (called the cleats) and the pores within the coal (called the matrix). CSG is then liquefied to produce LNG. CSG is an emerging energy source around the world and is in abundance in Queensland. Most of Queensland's CSG is close to existing major gas pipelines, making it an attractive energy source for power station operators, large industrial users and gas retailers. A large proportion of the commercial coal seam gas production comes from the Bowen Basin areas of Moranbah, Moura, Fairview, Spring Guly, Peat and Scotia and the Surat Basin areas of Roma, Dalby, Chinchilla and Emerald. Many of the projects include piping CSG from the Basin areas to Gladstone or Abbot Point, liquefaction of CSG to produce LNG and export of LNG to international markets. Together, the CSG/LNG Industry will generate significant positive economic and social benefits on a national scale for Australia, at the State level and for regional economies of Mackay-Fitzroy- Central West, predominantly Gladstone and Darling Downs-South West including Roma, Dalby and Chinchilla and Moranbah (Peak Downs vicinity).
CSG/LNG Projects in Queensland
Image supplied courtesy of Arrow Energy