More money flowing back into CSG
ANOTHER $80 million CSG project moves forward in the Surat Basin
Wednesday 01 March 2017
The wheels have commenced turning for another significant Surat Basin gas project this week, with pipeline infrastructure group APA lodging paperwork with the Federal Environment Department for the construction of a fifty-kilometre pipeline.
The pipeline will stretch from the APLNG Reedy Creek CSG processing facility 60 kilometres west of Wandoan, and head south-west to the Wallumbilla gas hub roughly 40 kilometres East of Roma.
“The pipeline will be approximately 50 kilometres (km) in length with a diameter of 460mm,” APA said in their submission.
“Permanent aboveground facilities will include end of pipeline facilities and marker signs to delineate the location of the pipeline.
“Construction of the pipeline will occur within a construction corridor of typically 30 metres (right of way - ROW) in width with additional areas required for soil stockpiling, pipe stockpiling, vehicle turn around areas, access tracks, water access and storage, sourcing rock, gravel and sand/soil and other activities incidental to or associated with the construction of the pipeline.”
APA has not said how many jobs the $80 million project will create. However, they have applied for approval to establish temporary accommodation facilities nearby as part of the total project application.
APA group is Australia’s largest natural gas infrastructure business, and last week announced a near 14% increase in earnings for the second half of 2016.
The news follows a similar announcement by Origin Energy a fortnight ago, who plans to drill around 114 new gas wells and connecting pipelines, in an area known as Spring Gully between Roma and Injune.
The two projects will be welcomed news for some of the thousands of workers who lost jobs during an almost complete freeze on new CSG projects in the Surat Basin over the last three years.
During that period, a massive oversupply of oil caused a collapse in gas prices rendering many projects in Queensland unviable.
However this week, global mining giant BHP says the oversupply of oil is almost over, and they are expecting oil and gas prices to recover.
“Demand growth and natural field decline suggest the world will need 30 million new barrels per day by 2025, which is equal to roughly one-third of total global supply today,” BHP Billiton vice president of petroleum marketing Michiel Hovers said.