Mirabile dictu: ALP to fund Beetaloo gas pipeline

Via The Guardian:

The new Northern Australia Development Fund will provide $1bn to tourism projects and “up to $1.5bn” for a new gas pipeline to unlock gas in Queensland’s Galilee and Bowen basins and connect the Beetaloo basin to Darwin and the east coast.
Labor said the policy would help Darwin export gas, while increasing supply to Queensland and the eastern seaboard to put downward pressure on prices for gas users.

Jemena has previously mulled this pipeline:

It is supposed to be able to deliver $6Gj gas to Wallumbilla which would satisfy my proposal to put a $5-6Gj cap on domestic reservation. Presumably it would also limit costs for pipelines on other gas given NT gas would likely displace VIC and SA gas at Curtis Island.

I’d rather see the public fully fund and retain ownership of the pipeline given it will act as an implicit price regulator for east coast gas. Sadly, many of the Beetaloo reserves are controlled by the extant gas cartel. There is also an issue of large Chinese ownership of the reserve. So it doesn’t change any arguments vis-a-vis the need for reservation.

The Beetaloo reserve is potentially huge, though uncertain given drilling is still underway, and resistance to the fracking needed could also prove an obstacle, like elsewhere. Though at least being remote it won’t upset the NIBMYs.

This is potentially an excellent development.

Comments

  1. Betaloo-Betoota pipeline needs to be built.

    Kev from next door said it would be a grouse idea.

  2. They need to tone down the claims……16% recovery ? A conventional well has 30% recovery……US fracking hasn’t got to 10% recovery yet but the gas might behave better than the oil

    http://www.paltar.com.au/beetaloo-basin_overview.php

    Looks a goer but it all depend on the relative depth of the aquifers and the shales……this isn’t the US……poisoning the aquifers won’t be tolerated here.

  3. Pipeline to Leigh Creek in SA would be better – they have the largest uncontracted reserves outside of the exporters, the reserves are as large as the cooper basin itself.

    It sits in the middle of nowhere atop an old coal mine so environmental problems are minimal.

  4. How much cheap gas does Vic have remaining?

    Bangladesh started importing LNG in 2018!

    https://www.reuters.com/article/us-bangladesh-lng-imports/bangladesh-extends-deadline-to-submit-plans-for-new-lng-terminal-idUSKCN1QV20K

    On 19 June 2000:

    At its current rate of production, Bangladesh has enough natural gas reserves to meet its consumption needs for the next 38 years

    https://www.ogj.com/articles/print/volume-98/issue-25/general-interest/bangladesh-natural-gas-exports-to-india-lng-alternative-with-narrow-window.html

    lol. 38 years turned out to be 18 years.

  5. Will someone please think of the gas cartel and their just for show renewable power generation projects in solar, wind and pumped hydro? – snigger snigger
    For starters cheap gas kills Origin Energy’s Shoalhaven pumped hydro project on the NSW south coast currently being tendered by construction contractors. It also kills the investment plans for LNG import facilities At Newcastle and Port Kembla. I’m certain the business case for Snowy Hydro 2.0 sinks with the availability of cheap gas

  6. Jevons ghostMEMBER

    Err…so we need to export still more gas? A non renewable resource which I thought we needed at home? WTF is going on here?