Analysis by Credit Suisse suggests that the three LNG projects on Curtis Island, Queensland, could potentially be short of gas reserves needed to meet 20-year sales contracts by as much as 8,800 PJ, according to The Australian Financial Review.
With the Queensland Curtis LNG (QCLNG) Project completing its first shipment of LNG in January 2015, and the Australia pacific LNG (APLNG) and GLNG projects also due to enter commissioning this year, analysts are questioning whether the east coast will have the reserves to meet increasing demand.
Federal Industry Minister Ian Macfarlane told The Australian Pipeliner that the Federal Government is continuing to work with the states on energy issues and a national gas strategy.
“As the Australian Government has long advocated, this will include developing the CSG industry in a way that balances community, industry and environmental needs,” Mr Macfarlane said.
Mr Macfarlane added that the best way of securing adequate gas supplies was to ensure that Australia makes full use of its gas resources.
However, The Australian Financial Review reports that Credit Suisse believes the investment is not being made to develop much-needed gas resources on the east coast due to financial constraints.
Meanwhile, Arrow Energy owners Shell and PetroChina are yet to confirm plans for their CSG reserves situated in Queensland’s Bowen and Surat basins, after having ruled out the development of a separate LNG plant, originally proposed for Curtis Island.