ORIGIN Energy boss Grant King says Queensland's burgeoning coal-seam gas export industry may struggle to drill enough of the thousands of onshore wells needed to meet the early demands of multi-billion-dollar plants being built at Gladstone, highlighting a tightening of a market some feared would be in a glut.
Mr King delivered the news yesterday after reporting a strong first-half profit that beat expectations thanks to a strong performance from its recent NSW electricity acquisition and higher oil and gas prices.
The managing director said whereas previously the industry had feared Queensland would be awash with gas as onshore production ramped up to feed Gladstone's liquefied natural gas, there was now the possibility that drilling could fall short.
"I think we will enter another paradigm where, in aggregate, not only will the industry be able to manage the ramp-up but probably it's going to be a bit challenged to deliver the aggregate resource," Mr King told The Australian.
While all three under-construction Gladstone plants that will freeze the gas and transfer it to ships bound for Asia were on track, the huge effort needed to get all the onshore gas wells up and going had been affected by flooding in Queensland over the past two years, he said.
The Australian
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