Chevron’s Gorgon Project is almost complete, and we’re expecting to see first gas from that project this year, so that’s pretty impressive – particularly when you consider the isolation the technical and regulatory challenges that project has faced.
Then we have the Wheatstone Project, the Ichthys LNG Project and eventually floating LNG with the Shell Prelude FLNG Project to come.
If it is the case that a lot of the attention has been focused on Queensland in recent times, it’s because the state has three major projects being developed with some quite innovative technology being deployed to
convert CSG into LNG.
The industry is showing itself to be very capable and very innovative to overcome those technical challenges.
HOW WILL FLOATING LNG CHANGE THE GAS INDUSTRY?
I think it’s important to recognise that FLNG allows projects to be developed that probably wouldn’t otherwise be commercially feasible, because it does reduce the upfront capital costs.
FLNG just gives us another option to find a competitive solution, and I mean competitive in the global sense of the environment – to develop reserves that would otherwise probably be out of reach.
It’s a great step forward and we’re finding ways to convert reserves that are difficult to develop into the basis of good projects – whether it’s CSG, or using FLNG to get the project economics right.
HOW DO YOU PLAN TO WORK WITH GOVERNMENT?
We’re trying to start the conversation with both federal and state governments about how we can look at the regulatory framework that we have and simplify and streamline it as much as possible.
APPEA has done a number of studies over the last two or three years to show that there is a competitiveness gap in Australia and that the cost of developing projects in Australia is higher than comparable countries like Canada.