Separate LNG projects may result in higher energy prices
QUEENSLAND'S crowded LNG scene could be responsible for higher energy prices in the state, according to industry experts.
Brisbane Times reports the general view among industry insiders is that prices will rise more in Queensland than other states, but all states will be affected, because of projects being developed separately at Gladstone's Curtis Island.
"High Queensland prices will attract gas from other states to help supply the LNG plants, which will in turn cause those states to experience price rises as supply is redirected to Queensland," says energy consultant Andrew George.
There are four liquid natural gas consortiums in Queensland, three of which are constructing - on slightly differing time frames - their own pipeline systems to Gladstone.
The three - GLNG headed by Santos, Origin's APLNG and BG's Queensland Curtis LNG - are also building three separate LNG processing facilities on Fisherman's Island off the coast of Gladstone.
The upshot is a triplication of infrastructure and, as costs rise and field gas flows show unimpressive results, it now appears too late to merge the projects into joint ventures to better manage risks.
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