Gas in Molln: "Ideally, the municipality would have 1.5 million euros more at its disposal"
By Karoline Ploberger and Verena **riel, March 23, 2024, 05:30 amMOLLN/LINZ.
Natural gas as an economic driver in the region? Test drilling has confirmed deposits. Autumn will show whether Austria can be supplied with gas from MollnThe discovery of gas in Molln, close to the Kalkalpen National Park, was announced earlier this week. After a rest period, the energy company ADX could resume drilling in the Jaidhaustal valley in the fall - if all conditions are met. The project still raises several questions:
How much gas does the company ADX suspect is next to the Kalkalpen National Park? It is assumed that there are 24 billion cubic meters of natural gas under the Welchau-1 drilling site - this corresponds to a total energy of 270 terawatt hours, i.e. almost three times the average annual consumption in Austria.
When and how would this deposit be developed? According to ADX, it is still unclear when gas drilling can actually take place. This is because the test drilling has not yet been completed, according to the energy company. "We confirmed the gas discovery on Monday. Now the question is whether the gas will actually flow. That depends on the consistency, and that is still being determined." During the summer break, official permits for further drilling will be obtained again. "Other drilling points also need to be set at the drilling site itself," says ADX spokesperson Wilfried Seywald. Drilling is currently being carried out vertically into the depths, after which drilling will be carried out at an angle of five to ten degrees into the ground, as this is the only way to obtain further results on the consistency of the gas. Who owns the gas? The owner of the approximately one-hectare drilling area on the edge of the Kalkalpen National Park is the Austrian Federal Forestry Office (ÖBf), which in turn belongs to the state. ADX pays them a rather manageable surface rent. This has been contractually regulated since the end of 2022 and is a "customary fee", says ÖBf spokesperson Andrea Kaltenegger. A production interest rate of 22% of the gas import price is then due to the federal government for the production itself. This is because, as in most countries, the gas underground also belongs to the state in Austria. In addition to the surface and production interest, ADX must also pay a so-called field interest to the Republic for the gas fields used.
Will the region benefit from gas extraction? ADX has proposed doubling the surface and field rent. The company then wants to pay one half to the municipality of Molln. The exact amount depends on the amount of land extracted, says Martin Schober, head of the municipality. Ideally, it is expected to be around 100,000 to 150,000 euros per year. Once the gas field has been exploited after ten years, the municipality would have received a total of up to 1.5 million euros. "That would be a good sum that we could use for our infrastructure," says Schober. If a well is actually drilled, there is also the possibility that ADX will set up an operating site in Molln, says drilling expert Wolfgang Nachtmann. Around 20 people are currently working day and night at the drilling site.
And how does the gas from Molln get into the gas grid? ADX would have to lay a pipeline for this, which would presumably lead to the nearest connection point in Klaus an der Pyhrnbahn. ADX also confirms this plan, should a gas well actually be drilled in the coming years. Although there is already a pipeline to Molln, it would not be able to transport the required capacities, says Wolfgang Denk, spokesman for Netz Oberösterreich GmbH. A pipeline with a diameter of around 30 centimeters would be needed, i.e. one twice as thick as the current one. However, it would take at least two or three years before it could be completed. First of all, the consent of the landowners is needed to lay a gas pipeline at a depth of 1.2 meters or more.
What is the mood in the town? "Basically, many people want independence, we don't want gas from Russia and certainly not from overseas," says Deputy Mayor Brunner. The "Wirt im Dorf" has developed into an "information center" since the project was announced. "Both opponents and supporters come to us," says landlord Robert Steinbichler. The advantages and disadvantages of the project have not yet been sufficiently explained, he says. Christian Klausner, who runs an inn and guesthouse in Molln, is one person who sees the gas deposit as a major benefit. "At the moment, all 17 rooms are occupied by ADX workers, normally we are not so well booked in the week before Easter."
3 questions for ... Wolfgang Nachtmann Wolfgang Nachtmann is a geologist and honorary professor at the University of Leoben. 1. how much natural gas does Austria need per year? Could the demand be covered by Molln?We have had domestic gas for more than 50 years. The most that could be produced by OMV and RAG was two billion cubic meters per year. Austria needs up to nine billion cubic meters per year - the equivalent of 80 to 90 terawatt hours. The difference was purchased from Russia. Now there is a strong political argument for becoming independent of Russia. And the gas from Molln could definitely help here.
2 At the end of the 1980s, OMV drilled a well in Molln.in Molln. Why was this not continued?It was not economically viable at the time. Above all, OMV originally had completely different intentions: to drill for oil. The gas became unplanned. About ten years ago, a study group from RAG and OMV re-examined the gas deposits in the Limestone Alps - ADX received this data from RAG.
3. what is the composition of the natural gas in Molln? What we call natural gas is to a high degree methane - usually almost 100 percent. The test reports should show whether this applies to the gas in the ADX well. In the Limestone Alps, there is only a relatively high risk of hydrogen sulphide occurring. The problem: processing is technically more demanding than with pure methane. Increased safety precautions are required during extraction and the sulphur must be separated from the methane.
ADX Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
