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Green light for new coal seam gas projects

By Kerrin Binnie, Stephanie Smail and Megan Lewis

Updated 9 minutes ago
Industry groups say the coal seam gas resources in Queensland and NSW could power a city of 1 million people for 5,000 years.

Industry groups say the coal seam gas resources in Queensland and NSW could power a city of 1 million people for 5,000 years.

* Video: Residents protest coal seam exploration (7pm TV News NSW)
* Audio: Coal seam gas projects decision (AM)
* Map: Gladstone 4680
* Related Story: Conservationist hopes Government rejects LNG projects
* Related Story: MP urges independent testing of coal gas wells

The Federal Government has given the go-ahead for two multi-billion-dollar coal seam gas projects in Queensland.

BG Group and a Santos, Petronas and Total consortium want to build coal seam gas projects in the Bowen and Surat basins.

The gas would be piped to Gladstone in central Queensland, converted to liquified natural gas and shipped overseas.

The projects received state approval earlier this year, and after months of delay the Federal Government has given the go-ahead this afternoon.

But Federal Environment Minister Tony Burke says he has imposed 300 conditions on each of the two projects which are aimed at protecting the areas affected.

"While there are significant economic benefits which must be a consideration in my decision, my focus has been on protecting environmental matters," he said.

"I've also considered potential impacts on agricultural land.

"Among other economic and social matters, we must protect the Great Artesian Basin, our threatened species, our waterways and the Great Barrier Reef."

Both companies want to be exporting gas in early 2014.

'Turning point'

Queensland Premier Anna Bligh says the approval marks a turning point for the Queensland economy.

"The significance of this is a whole new industry," she said.

"It is as big and important for Queensland as the opening up of the Bowen basin was decades ago."

The Queensland Opposition says it also supports the two LNG projects.

Opposition spokesman Tim Nicholls says the multi-billion dollar projects would be a boost for the state.

"We support the development of the LNG industry, with all the appropriate safeguards and conditions," he said.

"We see it - in terms of investment and what will happen for Queensland - this is almost equivalent to the Snowy Mountain scheme - thousands of jobs.

"This is a momentous event for Queensland."

Friends of the Earth spokesman Drew Hutton says he is disappointed the projects have been given the green light.

"There are people out on the Darling Downs and elsewhere in Queensland who are going to be very massively impacted by this development," he said.

"Farmers ... are going to lose their water, farmers who are going to have their land impacted upon, residents who are going to have their lifestyle affected.

"There are towns who are going to find themselves without water."

'18,000 jobs'

Industry groups say the coal seam gas resources in Queensland and New South Wales could power a city of 1 million people for 5,000 years.

Australian Petroleum Production and Exploration Association (APPEA) spokeswoman Belinda Robinson says the plants proposed by Santos and the BG Group have the capacity to transform the gas into a huge cash injection for Queensland.

"It would generate about 18,000 jobs, certainly many billions of dollars in export revenue and would increase the Queensland gross state product by 1 per cent," she said.

The coal seam gas would be piped from the fertile Surat Basin in southern Queensland to Gladstone, where it would be liquefied and shipped overseas.

Gladstone's acting mayor Gail Sellers says the plants are welcome if they generate jobs.

"Part of what will be involved in this will be training," Ms Sellers said.

"We're looking at the future for our children and apprenticeships will be more forthcoming."

Gladstone's Member for Flynn, Ken O'Dowd, says thousands of jobs hang in the balance ahead of the LNG announcement.

Mr O'Dowd says the region will be able to handle an influx of workers.

"BG Gas alone will need about 5,000 people in the construction phase and Santos are pretty keen to get going as soon as possible too - they'll have another 6,000 too," he said.

"They've done it before and I think we can do it again."

Contamination concerns

The industry has been plagued with issues this week in Queensland, with toxic chemicals known as BTEX found in eight coal seam gas wells.

There has been protests in New South Wales about the impact of coal seam gas extraction on the wine and tourism industries.

Southern Queensland cotton and grain farmer Ian Hayllor says the Federal Government will be taking a serious environmental risk if it approves the plants.

"Our biggest concern is the lack of understanding of the impacts on the ground water system especially the Great Artesian Basin and the associated aquifers," he said.

"Massive amounts of water are going to be extracted from these aquifers and we don't believe the science is there yet to understand the full implications of that process."