QUEENSLAND’S CSG/LNG INDUSTRY Mal Hellmuth General Manager Strategic Economic Projects

Queensland’s CSG / LNG Industry CSG a “stranded resource” Low cost (production plus a small profit) Gas Scheme effected on 1 January 2005 diversify Queensland’s energy mix support the gas industry reduce greenhouse gas emissions Currently 15% of electricity is required to be generated by gas

CSG Reserves Current estimates put Eastern Australia’s CSG reserves at around 250 000 PJ majority in Queensland

Coal Seam Gas Production – Bowen and Surat Basins

Coal Seam Gas 2P Reserves – Bowen and Surat Basins

Queensland Coal Seam Gas Reserves

Industry Proponents GLNG (Santos/Petronas) QCLNG (Queensland Gas Company (QGC)) Australia Pacific LNG (ConocoPhillips/Origin) Royal Dutch Shell/Arrow GLNG – Fisherman’s Landing LNG Limited) Southern Cross LNG (Impel) Sojitz Corporation Energy World Corporation

Collective Summary Eight announced projects LNG production of over 50 Mtpa Capital expenditure in excess of $40 billion Creation of over 18 000 jobs Construction of over 10 000 gas wells Over 3 000 PJ of CSG per annum 120 GJ to 350 GL of produced water Covers 10 000 square kilometres

Government Actions New industry for Queensland Required development of new policy settings Addressing industry-specific issues: Produced water Ground water Land acquisition Gas reservation Royalties Establishing industry precinct on Curtis Island (Gladstone) Providing collective Government responses Facilitating EIS processes Case management of approvals

Government Actions (cont) Preparing Western Basin Master Plan Ensuring skills development and supply chain management supports industry Established $10M joint Government/industry CSG/LNG Training Fund ICN working with industry to maximise Queensland’s content Ensuring Queensland companies are ‘tender ready’ Participating in National Resources Sector Employment Taskforce Establishing Government and industry processes to facilitate industry development Released Blueprint that outlines how the industry development will be facilitated

Gladstone State Development Area Precincts

Difficult to get LNG projects to FID Conclusion Difficult to get LNG projects to FID Of 17 proposed LNG projects globally since 2006, only three have reached FID Governments creates right climate for investment Each proponent must make their commercial decisions Queensland has confidence in the LNG industry

Happy to take questions Thank you Happy to take questions For further information: Strategic Economic Projects, DEEDI PO Box 15168, City East QLD 4002 +61 7 3898 0441 LNG.Team@deedi.qld.gov.au