Business spectatorUS drilling supplier warns on gas output:...

Business spectator

US drilling supplier warns on gas output: report
5 hours ago6

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Resources and Energy

Claims that a number of wells are not producing as much gas as expected has increased fears that Queensland's coal seams may not be able to produce enough gas to feed Gladstone's LNG export plants, The Australian reports.

According to the newspaper, Houston-based drilling supplier Superior Energy Services (SES) has given weight to the concerns, continually rejected by the the three proponents spending $70 billion on projects to export gas through Gladstone's Curtis Island.

SES has predicted growth in its eastern Australian business as poor well performance means more drilling in Queensland and South Australia.

"When we are talking to the operators in Queensland, we hear from them that the coal-seam gas (wells) that currently have been drilled are actually not meeting the production expectations," SES head of Asia Pacific Ruud Boendermaker said, according to The Australian.

"So what they have to do is to drill a lot more CSG wells in the next few years because of the commitments to the LNG trains that they are currently building in the north of Queensland."