Black coal to make a comeback as gas projects come online

ORIGIN Energy says the east coast's gas-fired power use will drop off dramatically in the next three years as Queensland's LNG plants soak up demand, sparking a revival in the use of black coal to provide electricity in the nation's most populated states.

The Australian reports Origin chief Grant King said the company estimated more than two-thirds of the gas used in power generation on the east coast and South Australia would be diverted to exports.

Origin is a partner in the APLNG project on Curtis Island.

"When LNG comes on, gas will get withdrawn from generation, so our view is over the next three or four years, about 140 petajoules of gas a year will be withdrawn from generation," Mr King said.

"The use of gas will fall and it will be black coal that makes up that difference."

The $70 billion of plants being built on Gladstone's Curtis Island to export coal-seam gas are expected to double or triple traditional prices and have sparked concerns of shortages for domestic buyers.

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