IMPACTS on water quality in the Great Artesian Basin's aquifers which supply much of rural Queensland have come into focus, following the release last week of the Bligh Government's plans for a new liquefied natural gas (LNG) industry.
While the Blueprint for Queensland's LNG Industry outlining the Bligh Government's plans to develop the world's first coal seem gas (CSG) to LNG export industry highlights the economic benefits to be gained, it also points to the need to mitigate possible impacts on the State's groundwater resources from the extraction of CSG to support an LNG industry.
Much of the area currently under development for CSG lies within the Great Artesian Basin, with its aquifers supplying about 2700 artesian bores and 15,000 sub-artesian bores, often in areas where there is no alternative water supply source.
To address the possible impacts of CSG developments on groundwater, the Government is proposing to implement a number of actions, including developing a regional groundwater monitoring regime to be funded via an industry levy on CSG producers and overseen by an independent monitoring body.
For those unfamiliar with CSG, it is primarily methane which is absorbed and maintained in the coal seem.
To produce CSG, the water contained in the coal seem must be removed to create a pressure void into which the gas migrates.
As a result, a significant amount of saline water is produced, with the quantity and quality of CSG water varying between wells and regions.
The Blueprint states: "In addition to CSG water containing concentrations of salts, it may also contain other contaminants that have the potential to cause environmental harm if released to land or water through inappropriate management.
"There are also ecological risks associated with the disposal of CSG water and, without proper treatment, the use for CSG water is limited."
There are currently eight LNG projects proposed in Queensland with a total capital expenditure in excess of $40 billion.
If all of the projects proceed, more than 50 million tonnes per annum (Mtpa) of LNG would be produced as a result of extracting CSG from the Surat and Bowen Basins and piping it to the coast at Gladstone in Central Queensland and Abbot Point near Bowen, for export.
The eight proposed LNG projects are:
* Santos Ltd/Petronas: proposes to develop a LNG plant on Curtis Island, Gladstone, and the further development of Santos gas fields in the Bowen and Surat basins including construction of a 450km gas pipeline linking fields to Gladstone;
* QGC Ltd: proposes a LNG plant on Curtis Island, and further development of its fields around Miles in the Surat Basin and construction of a 380km pipeline linking fields to Gladstone;
* LNG Limited/Arrow: proposes a LNG plant at Fisherman's Landing, Gladstone, and 470km pipeline from its fields around Dalby in the Surat Basin;
* Australia Pacific LNG (a joint venture between Origin and ConocoPhillips): proposes a LNG plant on Curtis Island, and 470km pipeline.
* Shell Australia/Arrow: proposes a LNG plant on Curtis Island;
* Sojitz Corporation: proposes a LNG plant at Fisherman's Landing, Gladstone;
* Impel (Southern Cross LNG): proposes a LNG terminal on Curtis Island, and 400km pipeline.
* Energy World Corporation: proposes a LNG plant at Abbot Point near Bowen, development of its tenures in the Cooper Basin near Eromanga, and construction of a pipeline linking the fields to Abbot Point.
Premier Anna Bligh said while much of the nation's LNG attention has been on Western Australia's Gorgon project, the contracts already signed for LNG out of the Surat Basin are more than that of Gorgon.
"It is estimated that Queensland's burgeoning LNG industry could offer as many as 18,000 direct and indirect jobs – including over 4300 in the Darling Downs – South West Region alone," she said.
A consultation paper for public comment has been released regarding the Blueprint, and the closing date for written comments is October 15.
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