QLD could struggle to meet long-term CSG contracts

APLNG Chief Executive Warwick King has stated that accessing the state’s coal seam gas reserves is proving to be a bigger challenge than anticipated.

Speaking at a conference in Sydney on 10 October, Mr King said “Most of us are finding, particularly in the tougher coals, it’s turning out to be more challenging than we thought.”

This confirms the concerns of industry analysts who have previously stated that the long-term gas contracts were based on reserves where extraction of gas was not economical.

This uncertainty has opened the door for development in NSW, with Australian Industrial Energy CEO James Baulderstone stating, “The existing 2P in Queensland has some risk attached to it, and there are some actual quality issues that are coming through now.

“There are challenges and there is a view they will not produce to expectation.

“There has already been 300PL of 3P reserves written off in the past 18 months in Queensland.”

Mr Baulderstone is leading the charge on getting the Port Kembla LNG import project up and running by 2020.

If you have news you would like featured in Gas Today contact Assistant Editor David Convery at dconvery@gs-press.com.au

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