tony burke gives go ahead., page-8

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Conditionally approval for gas projects
Updated: 16:54, Friday October 22, 2010
Conditionally approval for gas projects

The federal government has given conditional approval to two major coal seam gas projects in central Queensland.

Environment Minister Tony Burke told a media conference in Canberra on Friday his department had given conditional environmental approvals for Gladstone Liquefied Natural Gas (GLNG) - a joint venture between Santos, Malaysia's Petronas and France's Total - and BG Group's Queensland Curtis LNG.

'I have decided that these projects can go ahead without unacceptable impacts on matters protected under national environmental law,' Mr Burke said.

He said there were a total of 300 conditions which must be met.

'We must protect the Great Artesian Basin, our threatened species, our waterways and the Great Barrier Reef,' the minister said.

'Today's announcement involves more than 300 conditions which provide these environmental protections and allow the jobs and investment in Queensland to go ahead.'

The approvals were delayed earlier this year by Mr Burke's predecessor, Peter Garrett, who was concerned about the projects' potential impact on groundwater and the Great Barrier Reef.

The $16 billion GLNG project is a joint venture between Santos, Malaysia's Petronas and France's Total.

The project involves 2650 coal seam gas wells being drilled over 25 years in Queensland's Surat and Bowen Basins, a 435km steel pipeline from the Fairview gas fields to Gladstone, and an liquefied natural gas (LNG) plant and export facility on Curtis Island.

It received Queensland government environmental approval in May, based on a 13,500 page environmental impact study, and has entered into 42 agreements with indigenous groups.

The project is expected to create about 5000 construction jobs and 1000 permanent operational jobs from the start of shipments of LNG in 2014.

GLNG has agreements to sell 1.5 million tonnes a year of LNG to Total for 20 years starting in 2014, and 3.5 million tonnes a year of LNG to Petronas over the same period - Australia's largest trade agreement with Malaysia.

Santos said in its third quarter activities report this week talks were continuing with a number of Asian LNG buyers in relation to further sales and equity in the project.

QGC Pty Limited, a BG Group business, received Queensland government approval for the Queensland Curtis LNG (QCLNG) project in June.

Analysts have put the cost of the project as between $12 and $18 billion.

The project involves coal seam gas operations in the Surat Basin, a 540km underground pipeline network and LNG plant on Curtis Island.

It will have an initial production capacity of 8.5 million tonnes a year with export sales starting in 2014, underpinned by agreements with China, Japan, Singapore and Chile.

An estimated 5000 jobs will be created during construction with more than 700 during operation.

Green groups and farmers have raised concerns about coal seam gas development.

This week four toxic chemicals - benzene, toluene, ethylbenzene and xylene (BTEX) - were discovered in eight exploration wells owned by the Australia Pacific LNG in the Surat Basin.

The Queensland government has ruled out a moratorium on the industry, which environmentalists say poses a threat to marine life on the Great Barrier Reef and underground water, and could seriously degrade land.