Generation
Significant growth in gas-fired electricity generation capacity is expected in eastern Australia and a high proportion of the associated fuel supply requirements are expected to be satisfied by CSG. In NSW alone, three gas-fired power stations (Delta Energy at Munmorah, TRUenergy at Tallawarra and Origin Energy at Uranquinty) are currently under construction and several more are planned.
Certain companies are employing a “wellhead to wires” approach whereby the operator develops the upstream CSG asset, the connecting pipeline and also installs and runs the associated power plant. Electricity generated is then sold directly into the National Electricity Market (“NEM”).
- Origin has announced Board approval for a A$780 million, 630 MW combined cycle gas turbine power station at Darling Downs which will consume up to 44 PJpa of CSG over 20 years
- Various other CSG companies, including QGC, Arrow and ESG, own or operate smaller power stations using CSG as feedstock
Gas-fired electricity generation capacity in Eastern Australia
Source: ESG, based on data published by Australian Government Department of the Environment and Heritage — Australian Greenhouse Office
Recent development and increased focus on CSG assets and gas marketing
Development has recently moved into a more mature, focused phase. In March 2007 ESG signed a HOA with Macquarie Generation to supply up to 500 PJ of CSG for power generation.
ESG received initial certification of its CSG reserves in September 2007 and in November 2007 signed a MOU with Babcock & Brown to supply 40 PJpa of CSG to power stations in northern NSW.
ESG is currently working with both Macquarie Generation and Babcock & Brown to explore delivery options.
