Newcastle Port in contention for new LNG complex ?  

The Australian reports that NSW based coal seam gas producers are floating the idea of an LNG export terminal at Newcastle. Its hard to see, given the medium term gas glut developing, that all the LNG plants proposed for Australia are going to go ahead any time soon. The Australian reports - Port in equation for LNG complex.

NSW coal seam gas producers have held talks with Newcastle Port to build a liquefied natural gas plant, using the coal harbour as a second east coast export hub.

The Australian has learned that Santos, one of five proponents of CSG-to-LNG plants at Queensland's Gladstone port, has spoken to authorities about the possibility of using Newcastle as an export port for up to 40 petajoules of CSG it has in the Gunnedah Basin in the state's northeast.

A Newcastle Port Corporation spokesman confirmed there had been "very preliminary" discussions with more than one party about building LNG plants at the harbour, but would not name them.

Eastern Star Gas, which also has ground in the Gunnedah Basin, said it was one of the parties that approached the port.

"It is at a very, very preliminary stage, but we are looking at the possibilities of Newcastle Port," Eastern Star managing director David Casey said. He also said Eastern Star was looking at supplying the gas, which the company is still shoring up, to domestic industry in the Newcastle region, among other possibilities.

Most analysts are reluctant to put a price on potential exports from the NSW CSG fields, which are a long way behind the rapidly developing Queensland fields. "It is not something we've focused on, but it makes sense that they (Santos and Eastern Star) would be investigating the potential," Patersons Securities analyst Scott Simpson said. "You could make the same arguments for an LNG hub in Newcastle as you could for one in Queensland."

Santos says it has huge undefined gas resources in NSW and plans to drill 20 exploration wells over 20,000sqkm of ground this year. The company believes its NSW ground could hold twice that of its LNG partner Petronas's in Queensland.