Western Downs. A Future begins QUPEX Event

Transcription

1 Western Downs A Future begins 2012 QUPEX Event Mayor Ray Brown 25 September 2012

2 Where is the Surat Basin? It covers an area stretching from Roma in the west, to Taroom in the north and east to Toowoomba.

3 Resource sector activity Current and proposed developments $180 billion investment and 242 projects Coal Seam Gas to Liquid Natural Gas Underground Coal Gasification Power Generation Mining Gas Distribution Power Distribution Rail Water

4 What are the key drivers of growth? Thermal Coal and Coal Seam Gas

5 Thermal Coal The Surat Basin contains over 6.3 billion tonnes of thermal coal It is used for both export sales and local power generation. Upgrades and developments of road, rail and port infrastructure will be necessary to enable increased export sales. By converting coal to syngas, other products such as diesel, fertiliser and plastics can also be produced.

6 Coal Mines Coal Mines Proposed Coal Mines

7 Coal Deposits Coal Mines * Proposed Coal Mines Coal Deposits Two Up * Taroom * Orazabah * * Culgowie * Collingwood Summer Hill * Elimatta * * Wandoan Group Woleebee * * Glen Laurel * Guluguba * Pony Plains * Horse Creek * Glen Arden Rywung * * Cameby Downs Sefton Park * * Haystack Road Glen Wilga * * Ownaview Kogan Creek * Sabine * Felton West * * Felton East Bringalily * * Lochbar

8 Coal Seam Gas Coal seam gas is a form of natural gas (methane) that is extracted from underground coal deposits. Demand for Coal Seam Gas is driven by: - power generation - replacement of natural gas from the Cooper- Eromanga basin - demand from southern markets (NSW & SA) - and global demand. The supply of gas to global markets is subject to the development of LNG facilities at Gladstone.

9 Coal Seam Gas Wells

10 Power stations Coal Gas n Millmerran Intergen 880 MW n Braemar NewGen Power 450 MW n Tarong Tarong Energy 1400 MW n Braemar Origin Energy 630 MW n Tarong North Tarong Energy 450 MW n Spring Gully Origin 1000 MW n Kogan Creek CS Energy 750 MW n Oakey Oakey Power Holdings 300 MW n Roma Origin 70 MW n Condamine Qld Gas 140 MW

11 Power stations Gas Powered Coal Powered Proposed Power Stations

12 UCG & Coal to liquids projects Potential Projects

13 Other projects Solar (4 proposed) Wind Power transmission substation transmission line

14 Other significant drivers include LNG plants: Curtis Island, Gladstone Port infrastructure: Wiggins Island (north of Gladstone). Water: Bi product of CSM gas extraction- 166,000 ML pa. Rail: Southern inland missing link and other rail line upgrades. Roads: Upgrades are needed for efficient transportation.

15 LRMC of electricity generation options Absent fuel price changes and a price on carbon, coal remains the lowest cost producer» Corporate Affairs» May 2010» AGL Internal

16 Major companies operating in the Surat Basin. Power stations: CS Energy, Origin, QGC, Arrow and ERM Power. Coal: Xstrata, Anglo, New Hope, Peabody, Cockatoo, Tarong Energy, Stanmore, Yancoal, Metrocoal. Coal Seam Gas: Qld Gas/British Gas, Origin/Conoco Phillips, Santos/Petronas, Arrow/Shell Coal Gasification: Linc Energy, Carbon Energy, Liberty Resources and Cougar Energy Missing link Rail: Qld Rail, Xstrata, Anglo and 2 private companies. Drilling services: Easternwell, Lucas Mitchell, Atlas Drilling

17 Stakeholder benefits Stage 1 development (240 MW) Coopers Gap Wind Farm» Represents ~$700M AUD capital investment in Queensland» 33% of 2020 wind target» 10% of Qld LRET target (20%)» Meet the energy usage of approx 115,000 average Qld households Economic benefits» Up to 200 jobs are expected to be created during the construction phase» Regional contractors involvement with the construction» Local accommodation and service sector opportunity» Ongoing financial boost during the life of the wind farm through land related payments» Local employment for operations and maintenance of the wind farm long-term Wind Farms

18 Solar Power Stations

19 Solar Power Station

20 Some of the key business opportunities include... Exploration & drilling services Earth moving contractors Pipeline construction Welding & fabrication services Hydraulics & auxiliary services Electrical services Transport & logistics Equipment repair & maintenance Sandblasting, painting & galvanising Hospitality, cleaning & catering Engineering & surveying services Water treatment Scientific analysis services Project management services Security & safety system providers Accounting & administration Training & education Residential & commercial construction Health & other social services

21 Benefits Unemployment jobs, jobs, jobs Rural drift High average income House prices Business investment Reimbursement of costs

22 Issues from Emerging Resource Sector Salt & Water Possibly 40,000 gas wells Potentially 350,000 megalitres of water extracted from the GAB Potentially an excess of 1 million tons of salt bought to the surface Would fill Suncorp Stadium over 40 times

23 Striking the Balance - Solutions Land Access Policy Framework Strategic Cropping Land Policy Royalties for Regions EIS Cost Recovery Cumulative Impacts Water Solutions Agriculture Solutions Research Business Investment/Liveability Striking the Balance

24 Young farmers face uncertain future

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27 great artesian basin Underlies 20% of Australia Possibly largest in the world Supports rural towns 200,000 people $3.5 billion food & fibre production

28 We are stewards of this water for future generations for our children and grandchildren Colin Hazel Groundwater Engineer

29 Social & Environmental Impact Management Plans Infrastructure Agreements Traffic & Transport Water Re-use Affect on Groundwater FIFO/DIDO Wash Down/Pest Management Local Business Engagement Camps Waste Management Social Impacts Changes

30 Challenges?

31 The Challenges Development of coordinated infrastructure (roads, rail, water and gas) Managing social services & community infrastructure Up-skilling local industry to service and supply energy development. Attraction of new business and industries Attracting skilled and non skilled labour

32 Key messages to take home Major international companies are considering investing $180 Billion in our region. Potentially facing the greatest environmental issue that our state and possibly our nation has previously had to contend with. That being protection of strategic cropping lands and protection of the Great Artesian Basin. State Government role is to ensure government policy is in place and monitoring and reporting. Striking the balance - providing timely and solid information and protecting the environment will always be a crucial role for NR&M bodies, industry and Government.

33 Sometimes we all need help!

34 Further Information Phone: (07)