Strong growth & rising demand

Australian coal seam gas (CSG) production has increased by up to 38.4 per cent in the first three months of 2008.

According to a report by energy economics group EnergyQuest, domestic gas production also grew by 2.3 percent, with a 2.1 per cent fall in conventional gas production more than compensated for by strong growth in CSG in Queensland.

EnergyQuest’s Chief Executive Officer Graeme Bethune said CSG production hit a new record of 34.3 petajoules (PJ) for the March 2008 quarter, making a total of 123.1 PJ for the 12months to March.

Meanwhile, the Australian Bureau of Agricultural and Resource Economics (ABARE) revealed that the value of Australia’s minerals and energy exports is forecast to be approximately $178 billion in 2007 - 08.

ABARE Acting Executive Director Karen Schneider said “The price outlook across minerals and energy commodities remains positive, reflecting continued strong demand and only modest world supply growth.”

Federal Minister for Resources and Energy Martin Ferguson said that the data from ABARE showed a longer term decline in the energy intensity of the Australian economy.

Minister Ferguson said “First, greater efficiencies are being achieved by improved technology and energy management, supported by programs such as Energy Efficiency Opportunities, as well as fuel switching."

"Second, there has been rapid growth in less energy intensive sectors such as trade, commerce and service provision, relative to the more moderate growth of the energy intensive manufacturing sectors.”

New offshore legislation in force

The Offshore Petroleum Act 2006 has replaced the Petroleum (Submerged Lands) Act 1967 (PSLA) as of 1 July 2008.

The PSLA was rewritten to simplify the presentation of the legislation after many years of operation and amendments.

Minister for Resources and Energy Martin Ferguson said this will make the offshore petroleum legislation easier to understand, and reduce compliance and administrative costs to both industry and governments.

NT continues campaign for Ichthys LNG

The Northern Territory Government is working towards ensuring Darwin is the site of the Ichthys LNG Project, established a legal framework with Inpex and Total E & P – the proponents of the project.

Inpex lodged a notice of intent in May with the Northern Territory Government and environmental referrals with the Australian Government regarding the Ichthys LNG Development. The company is currently considering both the Darwin and the Maret Islands in Western Australia for the development of the project.

The Ichthys LNG development is the largest liquid hydrocarbon reserve found in Australia since the discovery of the Bass Strait oil fields. The reserves now stand at 12.8 Tcf of gas and 527MMbbl of condensate.

Acknowledging Ichthys as one of the top five gas fields in Australia, Federal Minister for Resources and Energy Martin Ferguson said the development would be an important step in Australia addressing its long-term energy security challenges and could make Australia a global gas powerhouse of the future.

Northern Territory Chief Minister Paul Henderson said his presentation on the Territory’s case for the $12 billion Inpex LNG project has been well received by major oil and gas company Total E&P.

“The Territory is best placed to become Australia’s second international gas hub and I’m doing all I can to ensure that happens,” he said.