Investment jumps as pipeline grows
THE Surat and Bowen basins to Gladstone coal seam gas (CSG) pipeline is responsible for a sharp jump in pipeline investment.
All CSG and liquefied natural gas (LNG) proponents are building hundreds of kilometres of pipeline across Central Queensland to deliver gas to plant and then for export.
Australia’s pipeline construction will reach record levels over the next three years due to large offshore gas discoveries and the emergence of the CSG industry.
Gas pipeline construction is expected to increase from about $900 million in 2008-09 to a peak of $2.3 billion annually.
Arrow Energy’s construction of a 470kilometre gas pipeline from the Surat Basin to Gladstone will be one of the largest of these projects to begin construction in 2010-11. The development which will cost $600 million, was granted a licence by the Queensland Government in February 2010, before Arrow Energy’s takeover offer rival producers Royal Dutch Shell.
BG Group selected a unit of China’s Baoshan Iron & Steel, or Baosteel, to build a 550km steel pipeline for its liquefied natural gas project on Curtis Island.
The 42-inch pipeline will run from BG’s coal-seam gas fields in southern Queensland to the LNG project at Gladstone.