ORIGIN Energy boss Grant King has publicly stated what many have suspected: that the sheer amount of coal seam gas wells to be drilled to feed LNG projects in Queensland may present a challenge.
Commenting on Origins half-yearly profit released yesterday, he told The Australian that the ramp up could be pushed out as LNG operators fought tooth and nail for rigs to drill their wells.
I think we will enter another paradigm where, in aggregate, not only will the industry be able to manage the ramp-up but its probably going to be a bit challenged to deliver the aggregate resource, he said.
That ramp-up period could be a challenging period to get the deliverabilities of the project but I think the industry will then work amongst itself to solve that.
He pointed out that floods in Queensland over the past two years had affected upstream projects, but fellow operator BG has previously said flooding had not delayed its project schedule at QCLNG.
Meanwhile, King went in to bat for Santos, which yesterday admitted the site around the former Eastern Star Gas Bibblewindi plant in the Pilliga forest in New South Wales was contaminated with elevated levels of salt due to spills.
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