Summaries - Australian Financial Review
Wednesday 20/10/2010 Page: 1
The detection of cancer causing chemical BTEX in water at Origin Energy's project near Miles in Queensland has caused concern in the coal seam gas sector. The site affected is owned by Australia Pacific LNG, a joint venture involving Origin Energy and ConocoPhillips.
The discovery of the chemical, which the Queensland government has taken steps to ban, coincides with a pending decision from Environment Minister Tony Burke over coal seam gas-fed liquefied natural gas (LNG) projects proposed by Santos and BG Group. Santos are also currently involved in negotiating the sale of a stake in its Gladstone LNG project to Korea Gas Corporation which was previously curtailed because of the planned resources super profits tax.
Major companies including Royal Dutch Shell, Total, Petronas and ConocoPhillips have been attracted to coal seam gas schemes investing approximately $20 billion in Queensland-based projects. Earlier this year Cougar Energy's Kingaroy underground coal gasification project was closed immediately by the Queensland Department of Environment and Resource Management after BTEX was discovered.
Kate Jones, Queensland Minister for Sustainability and Climate Change, said Origin Energy had briefed her on circumstances at the site. The Western Downs Regional Council Alliance has previously stated their concerns over the long-term effect of the coal seam gas industry on water quality and has maintained a campaign criticising the sector.
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