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

2. 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

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

4. Coal Seam Gas Production – Bowen and Surat Basins

5. Coal Seam Gas 2P Reserves – Bowen and Surat Basins

6. Queensland Coal Seam Gas Reserves

7. 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

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

9. 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

10. 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

11. Gladstone State Development Area Precincts

13. 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

14. Happy to take questions
Thank you
Happy to take questions
For further information:
Strategic Economic Projects, DEEDI
PO Box 15168, City East QLD 4002