could gladstone need csg from nsw?, page-2

sago,
I read this article and thought it was trashed up hype - kind of surprised to see this from Matt Chambers as his stuff is normally pretty good. Lets see how much a problem it is before we jump at shadows.

What exactly is the gripe? Is it just over overlapping EPC/MDLs? How much CSG ground does that really cover.


"Coal seam gas is in areas which coalminers are now starting to look at opening up, because the global financial crisis has passed and metallurgical coal prices are moving up," said Paul Newman, head of energy at law firm Blake Dawson.

Looking at opening up the whole state?


"From our perspective, there is a regime that will come under pressure from this process.

"There is uncertainty about what the government will do."

How much pressure based on how much uncertainty. perhaps some very localised pressure and considerable uncertainty, but widespread development uncertainty.

Early plans by Xstrata for a massive 100 million tonnes a year coal province near Wandoan in the Surat Basin is also expected to spur other miners with overlapping CSG exploration tenements. In a recent tenement overlap dispute between CSG producers and the small underground coal gasification sector, the Queensland government ruled on the side of the CSG producers. It is hard to see state government, which collects royalties from the world's biggest coking coal export industry, siding so quickly with the CSG industry if the coal industry moves against it.

So there is an expectation that POSSIBLY there could be some other issues? What are the target depths of CSG? And you are absolutely right, they wouldnt be quick to side with either side, but you can be sure that the Govt will be aiming for an expeditious and amicable resolution because the massive development and operation of the CSG-LNG plants means the creation of a multi-billion dollar industry in QLD - and a new one at that.


The four plants planned for Gladstone harbour are aiming to produce more than 12 million tonnes a year of LNG by 2015, though industry watchers say this target is unlikely to be met.

So is the target unlikely to be met because of the developmental overlap issue? or is that not what was being implied by inserting these comments in an article and not giving a reason for a possible delay?


I am certainly not a knowledgable coal mining type, but to suggest that coals are outcropping right over all the CSG fields that are being developed for export is going to cause project delays in all the projects, seems a bit out there for me.

Cheers,

SF