LNG high and dry

COAL seam gas (CSG) to liquefied natural gas (LNG) proponents have come out of the Queensland flooding relatively dry, according to the gas companies.

Arrow LNG told The Observer that CSG production has only been affected very slightly

“We are just waiting for some of our fields to dry out and for road accessibility to get back to normal,” a spokesperson said.

This comes only two weeks after the Department of Environment and Resource Management (DERM) said Arrow released water outside of their environmental authority.

A Queensland Curtis LNG spokesperson said to date the weather has had a minor impact on the development of the Queensland Curtis LNG Project, however, Australian Pacific LNG (APLNG) told The Observer a number of wells have been affected by the floods.

An Australian Pacific LNG (APLNG) Origin Energy spokesperson said Origin Energy has over 300 wells and 12 have been shut down because they have been inundated with water.

“We will be able to gauge the damage once the flooding goes down,” the spokesperson said.

“All the customer demand is being currently met through other wells so it’s relatively immaterial in terms of our production and output.

“We don’t believe there will be any timing impacts in regard to the APLNG project as a result of the floods at this time anyway.”

DERM is also in the process of amending proposed model conditions for environmental authorities for higher risk CSG activities.

The department says this will ensure that activities do not concentrate flood flows or increase the safety risk to people or property from flooding.

Surat /Bowen Basin Friends of the Earth spokesperson Drew Hutton said DERM is powerless to stop flood waters creating massive pollution.

"Flooding of coal seam gas areas is undoubtedly over-topping holding ponds containing large amounts of salty water," Mr Hutton said

“Once this salt hits the high clay content black soil plains of the Darling Downs it is likely to destroy the ability of these fields to produce again since salt on soil containing more than 30 per cent clay renders such soil unproductive.”