Coal Seam Gas To LNG In NSW ?  

Posted by Big Gav in , , ,

The Age reports that the coal seam gas boom is heading south, with Eastern Star Gas pondering CSG to LNG in NSW as well - Eastern Star hoping to turn coal gas into LNG.

EASTERN STAR has raised the long-term prospect of its Narrabri coal seam gas joint venture in NSW eventually underpinning a multibillion-dollar liquefied natural gas export project based in Newcastle.

The LNG potential of the project emerged as a key promotional point in the group's successful and heavily over-subscribed $50 million share placement at 55 cents a share.

It comes as the market has been turned on to CSG-to-LNG opportunities after $16 billion was pumped into Queensland projects last year by global industry heavyweights ahead of another $20 billion in planned investments there.

Eastern Star managing director David Casey was not about to overstate the prospect of the Queensland boom in CSG-to-LNG coming to NSW. "We are not saying we are an LNG company. But we hope to be one, and there is no reason why we couldn't be," he said.

Recent drilling results and the joint venture's contingent resource estimate upgrade to 6000 petajoules had given encouragement to begin thinking what Narrabri's coal seams could deliver over and above the 72 petajoules a year spoken for in supply memorandums-of-understanding.

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