In recent times, there has been significant interest in the development of a liquefied natural gas (LNG) industry in Queensland based on processing coal seam gas (CSG) from the Surat and Bowen basins.  The proposals include piping CSG to Gladstone or Abbot Point, liquefaction of CSG to produce LNG and export of LNG to international markets. 

Eight proponents have publicly announced proposals.  Seven of these are seeking to export LNG from Gladstone and one is seeking to export from Abbot Point.  The first export of LNG is expected to commence in 2012 with significant LNG exports scheduled from 2014 onwards.

Potentially, the LNG industry could involve a private sector investment of more than $40 billion, the export of 50 million tonnes of LNG per annum providing significant economic benefit to Queensland including an increased Gross State Product and the creation of over 18 000 jobs.

LNG Unit joins DEEDI

As part of the machinery of government changes, the LNG Industry Unit has been transferred to the Department of Employment, Economic Development and Innovation (DEEDI).

The LNG Industry Unit has been set up as a one-stop shop for LNG industry proponents who wish to engage with government. The LNG Industry Unit also liaises with local authorities, peak industry bodies and project proponents to develop a whole-of-government policy response and to facilitate the LNG industry in Queensland. The unit’s major roles include: 

• policy development for the CSG/LNG industry, including reporting progress against milestones agreed by government 
• industry assistance, for example, through facilitation of issues such as common user infrastructure and internal government processes 
• commercial negotiations (such as contractual arrangements and development agreements).

These aspects fit well with DEEDI's employment generation and industry development brief, while other aspects such as planning, land tenure, pipeline corridors, common user infrastructure and approval processes for specific projects will remain with the Department of Infrastructure and Planning.

The unit’s new web page is – http://lng.industry.qld.gov.au/ and it can be contacted at:

• LNG Industry Unit
  Department of Employment, Economic Development and Innovation
  PO Box 15168
  City East Qld 4002

Or

Email to: LNG.Team@deedi.qld.gov.au

Key issues

With the emerging LNG industry, there are a range of economic, environmental and social impacts that need to be considered.  The LNG Industry Unit in consultation with other government departments and proponents is currently reviewing these possible impacts.

The government’s preliminary review of these issues is set out in the Issues Paper( 75 KB)

Port of Gladstone Western Basin Draft Master Plan

In order to provide long-term coordination of the industrial development in Gladstone, the government is undertaking a significant initiative called the Port of Gladstone Western Basin Draft Master Plan

Management of coal seam gas water

A key issue is the management of CSG water – a by-product of CSG production which typically contains high concentrations of salt and other contaminants that have the potential to cause environmental harm if released to land or waters through inappropriate management.

The LNG Industry Unit is working with the department’s Coal Infrastructure Taskforce to finalise a policy position on management of coal seam gas water. 

Studies

In order to facilitate the LNG industry, the government has commissioned a number of studies:

• Queensland LNG Industry Viability and Economic Impact Study, May 2009 ( 2.6 MB)

• Liquefied Natural Gas Whole of State Environmental Impact Study, December 2007 ( 1.2 MB)
• Queensland LNG Industry Viability and Economic Impact Study, February 2008
• Pages 1 - 83 ( 980 KB)
• Pages 84 - 190 ( 940 KB)
• Full print version ( 1.8 MB)
• Site Selection Study LNG Production and Export Precinct – 28 March 2008
• Part 1 - Pages 1 - 78 ( 2.5 MB)
• Part 2 - Map 1 (490 KB)
• Part 3 - Map 2 (605 KB)
• Part 4 - Map 3 (541 KB)
• Part 5 - Map 4 (528 KB)
• Part 6 - Map 5 ( 498 KB)
• Part 7 - Map 6 (571 KB)
• Environmental Assessment LNG Production and Export Facility Site Selection Study – 18 March 2009 (413 KB)

Environmental impact studies

A number of LNG projects are currently being progressed through environmental impact studies under the State Development and Public Works Organisation Act 1971 and the Environmental Protection Act 1994.

Environmental assessments status:

• Gladstone Liquefied Natural Gas Project (Santos Ltd/ Petronas)
• Queensland Curtis LNG Project (BG Group/ Queensland Gas Company)
• Australia Pacific LNG Project (ConocoPhillips/ Origin Energy)
• Gladstone LNG Project (LNG Ltd/ Arrow)
• Sun LNG Project (Sunshine Gas/ Sojitz Corporation).
• Shell Australia LNG (Shell CSG Australia Pty Ltd)

In addition, the Gladstone Port Corporation (GPC) is conducting an environmental assessment regarding the Fisherman’s Landing site (Fisherman’s Landing Port Expansion, Port of Gladstone).

Fact sheets

Fact sheets to assist stakeholders to better understand the LNG and CSG industries:

• coal seam gas
• liquefied natural gas
• LNG safety
• liquefied natural gas reserves and resources
• demand for coal seam gas in Queensland
• management of coal seam gas water
• impacts of coal seam gas on groundwater aquifers
• land access and impacts.

Media releases

• Long-term plan for port's western basin (7 August 2009)
• 18,000 jobs and billions of $$s for exciting new LNG industry (14 July 2009)
• LNG export industry powering ahead (12 June 2009) 
• Minister and Mayor head to Darwin on fact finding tour (2 June 2009) 
• 5000 Jobs Proposed in LNG Project (8 April 2009) 
• New Gladstone office will provide critical jobs for region (20 February 2009)
• Bligh Govt gives green light to thousands of jobs (18 February 2009)
• QGC secures land for Queensland gas project (3 February 2009)
• Curtis Island study (23 September 2008)
• Win-Win on Curtis Island (1 August 2008)
• LNG Industry in the Pipeline (21 May 2008)

BLIGH welcomes $8 billion gas investment (3 February 2008)