Australia's LNG nuclear bomb
20 November 2013 -
Business Spectator - The high price of gas in Australia has made
replacing coal-fired power stations with gas uneconomic and
“fugitive emissions” from the LNG plants mean that reducing overall
emissions within Australia by 5 per cent by 2020, as government
policy states, will require much bigger cuts in other industries.
Doubts grow over ability of gas wells to feed Curtis LNG
19th Nov 2013 -
Gladstone Observer - Doubts about the ability of
Queensland's coal seams to produce enough gas to feed Gladstone's LNG export plants are growing, with claims that
many wells are not producing as expected and that more gas could be needed.
The concerns, which have been rejected by the three proponents spending $70 billion on projects to export gas
through Curtis Island, have been backed up by Houston-based drilling supplier Superior Energy Services.
"When we are talking to the operators in Queensland, we hear from them that the coal-seam gas (wells) that currently have
been drilled are actually not meeting the production expectations," SES head of Asia Pacific, Ruud Boendermaker,
told investors in Houston last week.
"So what they have to do is to drill a lot more CSG wells in the next few years because of the commitments to the LNG trains that they are currently building in the north of Queensland."
Export forecasts put $20bn
LNG project at risk: report
- The owners of the $20 billion Arrow coal seam gas project in Queensland are looking for more value
in the project, raising doubts about it going ahead as the International Energy Agency downgrades long-term Australian LNG export forecasts.
Surging costs of every big development approved in the past decade have put projects at risk and Royal Dutch Shell and PetroChina have
told the Arrow operators to sharpen the cost structure, The Australian reported.
In September, Arrow Energy, the venture between oil majors Shell and PetroChina, secured Queensland government approval for its planned
LNG plant in Gladstone, but considerable uncertainty remained whether the partners will proceed with a standalone venture.
The approval meant Arrow now has state-level clearance for three of the five parts of the Arrow LNG project: the LNG plant, and the two
pipelines that will take coal seam gas from the Surat and Bowen Basins to Gladstone.
Still outstanding are the approvals for the development of the upstream coal seam gas fields.
Arrow is targeting a final investment decision by early 2014 for the project, but most observers believe it will not go ahead with a stand-alone plant, but will instead link with one of the three
existing coal seam gas-based LNG ventures being developed in Queensland.
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