Supply issues continue to drive need for gas pipeline MAY 1, 2017, page-2

extract only from The Aust today.

"...Shell has written off $390 million worth of newly acquired coal-seam and other gas exploration and evaluation ground associated with the Queensland Curtis LNG plant at Gladstone because of poor drilling and testing results.

Raising more questions over long-term production from Queensland coal-seam gas fields that are supposed to feed Gladstone’s three gas-hungry LNG plants for the next 20 years, the writedowns were revealed as part of $1.2 billion of impairments logged this month in local accounts for Shell’s Queensland subsidiaries.

Consultants EnergyQuest have warned onshore reserves slated to supply Gladstone may not yield as much gas as companies expect, after analysing the results of 8000 wells.

“The new Gladstone coal-seam gas to LNG industry is fed by booked proven and probable reserves, but substantial reserves are booked in areas that have not yet demonstrated any commercial production,” said EnergyQuest chief executive Graeme Bethune. “In short, the east coast gas market is exposed to significant elevated reserves risk.”

IMHO, this could have indirect implications for CTP projects, in that a material reduction in supply from the CSG wells which supply the LNG projects, will just exacerbate the supply problems already headline stuff on the East Coast.

The fed Govt has already announced big infrastructure projects like Badgerys Creek, and now Inland Rail project. So they are not afraid of spending the big bucks.

Feds acted wrt to shortage of gas on East Coast because of the direct threat to industry and jobs.
So re-election will be top of mind.

The Wa Govt (or was it last Premier?) has advocated trans-continental pipeline to pipe WA gas to East Coast.
I think I read that Feds were considering that idea.
I think I read it would cost $5B?

But my point is, with LNG partners looking like they might struggle to supply their own LNG projects (and thus might not supply domestic gas), that WA pipeline would look more appealing.

just contemplating.
cheers