QLD LNG to meet domestic and export demand: Gov't

QCLNG second supply train in July 2015

QCLNG second supply train in July 2015

The Queensland government has allayed concerns for domestic supply as the state’s LNG facilities approach an export boom.

Industry representatives last week debated the impact of LNG export growth on domestic users at the Eastern Australia Energy Markets Outlook in Sydney.

It came as the Australian Competition and Consumer Commission (ACCC) stated that the emerging LNG export market was threatening domestic supply and demand for the commodity.

In Queensland alone, three LNG facilities – the Curtis LNG Project, Santos’ GLNG Project and Australian Pacific LNG project - are all ramping up and estimated to contribute a third of the $46.7 billion worth of Australia LNG export values by 2019-20.

The Queensland government on Friday announced it had concluded Port Services Agreements (PSAs) with all three LNG exporters, paving the way for the ramp up of LNG shipments.

Energy Users Association of Australia chief executive Phil Barresi said today in a statement that manufacturers are dependent on an abundant, competitively priced energy.

“In the changing climate of reform and energy exports it is imperative that Australia retains its competitive advantage in energy supply whilst simultaneously facilitating LNG exports,” he said.

When questioned if Queensland’s LNG exports would impact domestic supply, Jan Martin, spokeswoman for state Minister for Natural Resources and Mines, Anthony Lynham, said there would be “more than enough” to meet domestic demand.

“Queensland’s known gas reserves are currently 43,000 petajoules – a third of all known gas reserves in Australia,” she said.

“The establishment of the LNG sector is also expected to have minimal impacts on industrial gas users, including manufacturing, in Queensland. The Australian Energy Market Operator forecasts that Queensland industrial gas consumption will decrease annually to 100 petajoules per annum over 2019-2024 at expected domestic gas prices.”

Mr Lynham’s spokeswoman added that the Queensland government is developing a plan to encourage jobs in the gas industry from the wellhead through to gas-fired manufacturing and export LNG.

An issues paper on Queensland Gas Supply and Demand Action Plan will be released for consultation later this year and is expected to be completed in the first quarter of 2016.

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