Origin Energy to invest additional $114 million in Queensland Coal Seam Gas
ASX/Media Releases
25 Jul 2006
Located 90km north of Roma in central Queensland, the original $200 million Spring Gully Gas Project entered into commercial service in July 2005 and has been performing above expectations by delivering higher than expected levels of natural gas. The Plant was officially opened in November 2005 by Premier Peter Beattie.
Origin Chief Operating Officer, Karen Moses, said the expansion of the Spring Gully Project further underpins and secures Coal Seam Gas as a reliable and key energy source for Queensland in the decades ahead. “There is a strong and ongoing role for Coal Seam Gas in the mix of Queensland’s energy supply,” said Ms Moses.
“Since Origin was listed in 2000 it has invested over $800 million in Queensland in oil and gas production, power generation and LPG distribution. Doubling the output of our Spring Gully Project maintains Origin’s position at the forefront of the gas industry in Queensland, as well as one the major providers of commercially proven Coal Seam Gas.”
“One of the most significant changes in Australia’s gas supply in recent years has been the emergence of Coal Seam Gas as a reliable and viable major new energy source for Queensland. We are particularly pleased that our Coal Seam Gas developments in Queensland are playing a crucial role in supporting the State Government’s Clean Energy Strategy* ”
“Origin is already committed to clean energy and, with over 100,000 customers, sells green power to more customers than any other energy retailer in Australia. Indeed, Origin has introduced GreenEarth Gas, the first product of its type in Australia to offset a customer’s greenhouse gas emissions from their use of natural gas” added Ms Moses.
Origin is also seeking Government approval for a nominal 1,000 MW gas fired
power station to be co-located with the Spring Gully Gas Plant.
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For further information, please contact:
Wayne Gregory
National Manager, Public Affairs
Telephone (03) 9652 5886
Mobile 0419 587 375
*The Clean Energy Strategy announced in 2000 required
that 13% of electricity sold in Queensland was to be generated from gas, including
coal seam gas.
About Coal Seam Gas (CSG)
Coal Seam Gas is methane gas stored within coal seams, and is an energy source that has the potential to provide significant economic benefits to Queensland.
Queensland has extensive CSG resources with proved plus probable reserves in excess of 2,800 Petajoules (PJ) which represents the equivalent of 20 years coverage of the Queensland market. There is potentially more than 15,000 PJ of recoverable CSG in Queensland.
As an end-use product, CSG is the same as natural gas, and can be utilised in all natural gas appliances and commercial applications. The difference between CSG and other natural gas is mostly how it occurs in nature. CSG collects in the coal seam by bonding to the surface of coal particles, whereas other natural gas is stored in the pore spaces between grains of sandstone or similar rock.
Coal seams in the ground are generally filled with water, and it is the pressure of the water that keeps the gas adsorbed as a thin film on the surface of the coal. The cleats, the fracture system of coal, may be interconnected and permeable. In a high quality CSG deposit the cleats are permeable enough to allow gas and water to flow freely through them.
The level of gas produced from a coal bed is dependent on the thickness of the coal, gas content, permeability and the depth of the coal seam.
The coal seams that can produce CSG economically are usually between 200m to 1,000m below the surface.
Picture showing an aerial shot of the Spring Gully Gas Plant when it was commissioned
in July 2005
Spring Gully opening features Premier Peter Beattie and Origin Energy Managing
Director, Grant King at the opening of the Spring Gully Gas Project
Map showing origin Exploration permits in central Queensland and the location
of Spring Gully, which is 80 km north of Roma
