Coal gas conversion a first
QUEENSLAND will host the first plant in Australia to convert coal seam gas to liquefied natural gas on a commercial scale under a new deal rivalling Tasmania’s LNG diesel trucking network.
The $100 million agreement will see the construction of a multi-million-dollar liquefied natural gas plant near Chinchilla to create fuel for trucks from coal seam gas.
Premier Bligh joined gas company BOC and coal seam gas exporter QGC to announce the $100 million contract in Chinchilla on Thursday.
Both companies say the new plant is on track to be first in Australia to produce liquefied natural gas (LNG) from coal seam gas.
The Premier said BOC’s new plant will complement the company’s other micro-LNG plants which are located in New South Wales, Victoria and Tasmania, which create LNG from conventional gas reservoirs.
QGC managing director Catherine Tanna said the agreement offered great economic and environmental benefits to Queensland.
“This is a partnership in innovation in which QGC and BOC will use the natural resources of the region’s coal seam gas to create an attractive new industry for Queensland,” Ms Tanna said.
“We will supply trucking companies with an environmentally beneficial replacement for diesel and, in turn, help to support local economies.