Garrett delays gas deal ruling * Matt Chambers * From: The Australian * July 14, 2010 12:00AM FEDERAL Environment Minister Peter Garrett has delayed rulings on two $10 billion-plus Gladstone coal-seam gas export projects.
They are operated separately by BG Group and Santos and the move is expected to push back at least one project start by three months.
Rulings on the two projects, expected this month, are now scheduled for October 11 after Mr Garrett asked for more information from the proponents.
BG is waiting only for the Gillard government's approval to give the formal go-ahead on construction for its Curtis Liquefied Natural Gas project. Industry watchers had expected a final investment decision on Curtis LNG as early as this month.
Santos, which is building the Gladstone LNG project with Petronas, still needs to jump other hurdles before making an investment decision, including securing LNG sales contracts and concluding consolidation talks with the less advanced Shell/PetroChina LNG project.
It is understood Mr Garrett, who recently visited the LNG plant sites, has asked for more information on water management plans and the effect of the projects on groundwater.
He also wants more information on the impact of the projects on the Great Barrier Reef World Heritage Area, in which the Port of Gladstone sits.
The delays are expected to mean decisions on the projects are pushed back until after the federal election.
"These are the first coal-seam gas LNG projects that have been assessed under national environment law, and it's important that the potentially significant environmental impacts of this project on nationally protected matters are properly assessed," a spokesman for Mr Garrett said.
Wayne Swan stressed the federal and Queensland governments were working with BG.
"We are acutely aware of just how important this industry is for jobs, growth and the community, and recognise the need to get this resolved quickly," the Treasurer said. "These are large and complex projects and, whether we like it or not, we need to operate within the confines of the rules."
A BG spokesman said the delay did not push its project outside the limits of a previously announced timetable.
"We have consistently said we will consider a final investment decision later in 2010 after we have received all required environmental approvals. Our position has not changed," he said.
Santos said it was still on track to approve its project this year.
Today in Brisbane, Arrow Energy shareholders are due to approve a cash takeover by Shell/PetroChina.
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