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Sunday, June 9, 2013

Campbell Newman and his flying pig economics

Campbell Newman and his Flying Pig economics
Campbell Newman and his Flying Pig economics

Natural gas will fuel growth surge

AAP  | 

PREMIER Campbell Newman says Treasury hasn't been too optimistic by forecasting state economic growth will double by mid-2015.

Tuesday's Budget predicts liquefied natural gas exports will drive an economic resurgence, pushing the state's growth to 6 per cent in 2015-16 and helping achieve a $1 billion surplus in that year.
(Read more at the Advertiser...)

LNG exports to hit domestic gas prices

Mark Ludlow  | 

“Gas prices have been creeping up over the last few years but the real crunch will come near 2015-16 when all the LNG stuff ramps up.”
(Read more at the Financial Review...)

Coal Seam Gas under pressure

Paddy Manning  | 

Queensland’s CSG would go for export as liquefied natural gas (LNG), shipped out of Gladstone to Asian markets. LNG plants producing millions of tonnes per annum are hungry beasts – nowhere else in the world had they been hooked up to thousands of CSG wells. But in 2010-11 three giant CSG-to-LNG projects worth $60 billion – BG Group’s Queensland Curtis LNG, Santos’ Gladstone LNG and Origin Energy’s Australia-Pacific LNG – were rushed through state and federal government approvals, with 20,000-30,000 wells to be drilled across the Darling Downs over the next two decades.

The LNG plants are under construction and will be up and running from 2014-15. A fourth project, Arrow LNG, proposed by Shell and Petrochina, is hoping for approval.

Queensland’s big CSG-to-LNG projects may enhance Australia’s energy security – we are poised to overtake Qatar as the world’s largest LNG exporter by 2017 – but their impact on domestic energy prices and greenhouse gas emissions is highly debatable.

Domestic gas prices on the east coast are expected to double by around 2015, as they reach ‘export parity’. In simple terms, for the first time Australian gas users – commercial and residential – in the eastern states are competing for gas with energy-hungry Asian nations like Japan, Korea and China.

Manufacturers like Dow Chemical and Incitec Pivot, who use huge amounts of gas and are already struggling with our high dollar, are livid. Households battling rising electricity prices will be shocked to find their gas prices doubling too.
(Read more at Government News...)