There is significant interest in the development of a liquefied natural gas (LNG) sector in Queensland based on processing coal seam gas (CSG). As the CSG-LNG sector presents both opportunities and challenges, the Queensland Government is conducting a review to help shape its policy response.

How much gas does Queensland currently use and what will it be in the future?

Queensland consumed approximately 148 petajoules (PJ) of gas in 2007, up from approximately 100 PJ in 2004.

Annual demand for gas within Queensland, and for the LNG sector, is forecast to increase more than 16 times on the 2007 consumption level. Table 1 provides the forecasted consumption levels.

Table 1: Forecasted consumption levels

Where is the gas mainly used?

Electricity generation and mineral processing accounts for more than 80 per cent of Queensland’s gas consumption—this consumption has grown by 70 per cent in the last decade. Residential use accounts for approximately a further 10 per cent.

There are more than 140 000 residential and small commercial natural gas users in Queensland (using less than one terajoule¹  a year). Most of these customers are located in Brisbane, while the majority of industrial customers are in regional areas including Gladstone and Mt Isa.

How is the natural gas transferred to regional areas in Queensland?

Natural gas is transported via five major natural gas transmission pipelines:

• Ballera to Wallumbilla (Roma) Pipeline (756 km
• Ballera to Mt Isa Pipeline (841 km)
• Wallumbilla (Roma) to Brisbane Pipeline (440 km)
• Wallumbilla (Roma) to Gladstone and Rockhampton Pipeline (627 km)
• Moranbah to Townsville Pipeline (391 km)

These pipelines directly service large industrial customers and gas-fired generators. They also provide gas for local distribution networks throughout Queensland.

Who owns the gas network?

During the 1990s, Australia restructured its vertically integrated gas transport utilities into separate transmission and distribution businesses and privatised the resulting businesses as part of the Australian Government’s National Competition Policy.

Australian Pipeline Trust (APT) owns the Roma to Brisbane Pipeline (RBP) and the Carpentaria Gas Pipeline (CGP), APT also owns the ‘south’ distribution network region comprising south Brisbane, Toowoomba, Oakey and the Gold Coast. Epic Energy owns the South West Queensland Pipeline (SWQP) and Alinta owns the Queensland Gas Pipeline (QGP). The rest of Queensland’s gas transmission pipelines are owned by a range of companies which typically have a direct production or consumption interest in the gas transported.

Table 2: Major Queensland gas transmission pipelines ownership

Table 3: Other existing Queensland gas transmission pipelines ownership

Ownership of distribution networks in Queensland has remained relatively stable over the last 15 years. Following a decision to divest itself of some energy assets, the Queensland Government sold the state-owned distributor Allgas - which owned southern region networks - to the Australian Pipeline Trust (APT).  Envestra took over from Boral as owner of the northern region networks in 1996. Both networks are managed by APT, with APT also having a 17 per cent stake in Envestra.

Table 4:Major Queensland gas distribution networks ownership

Contact the LNG projects team

tel:        +61 7 3404 8206
email:    lng.team@dip.qld.gov.au
post :    LNG Industry Unit
Department of Infrastructure and Planning
PO Box 15009, Brisbane City East QLD 4002

¹  A TJ is a terajoule (or 1012 joules)

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