Newcastle LNG Terminal

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.
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Newcastle LNG Terminal is a proposed Floating Storage Regasification Unit (FSRU) in Newcastle, New South Wales, Australia.

Location

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Project Details

  • Owner:
  • Parent: EPIK
  • Location: Newcastle, New South Wales, Australia
  • Coordinates: -32.916667, 151.75 (approximate)
  • Capacity: 1 mtpa
  • Status: Proposed
  • Type: Import
  • Start Year: 2021[1]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Newcastle LNG Terminal was a proposed export LNG terminal in New South Wales, Australia.[2]

In 2010 Eastern Star proposed the LNG, but to export coal-seam gas from its Narrabri project.[3] The Narrabri gas project is the last existing coal seam gas project in New South Wales.[4]

The project was cancelled in 2016, but some elected leaders as Labor's Joel Fitzgibbon are still pushing for an import terminal in the Port of Newcastle.[3]

In December 2018 South Korean company EPIK proposed an A$500 million LNG import facility at Newcastle.[5] In April 2019 EPIK contracted with Australian firm Watpac to build the terminal as an FSRU.[6]

Australia's Coal Seam Environmental Concerns

In December 2014, Queensland Curtis LNG became the world's first project to turn coal seam gas into LNG for export. Curtis Island's two other LNG plants, Queensland Curtis LNG Terminal and Gladstone LNG Terminal also convert coal seam gas into LNG.[7]

Coal seam gas projects in Australia are not without controversy. Coal seam gas (abbreviated "CSG") is formed by the geological process of heating and compressing plant matter to create coal. Over millions of years, methane forms within the coal. The methane is trapped by water in the gaps and cracks between the coal molecules. These gaps are known as cleats. Australia has been found to have many deposits, and is increasingly mining them through hydraulic fracturing, also known as fracking.[8]

CSG is a form of coalbed methane (CBM), or coalbed gas, and is a type of natural gas extracted from coal beds. In recent decades it has become an increasingly used source of energy in Australia, as well as the United States, Canada, and other countries.[8]

Australian green groups and farmers have raised concerns about coal seam gas development. In May 2010 four toxic chemicals - benzene, toluene, ethylbenzene and xylene (BTEX) - were discovered in eight exploration wells owned by the Australia Pacific LNG Terminal in the Surat Basin. But the Queensland Government has ruled out a moratorium on the industry.[9]

Articles and resources

References

  1. FACTBOX-Australia's five proposed LNG import terminals, Reuters, Jun. 27, 2019
  2. Newcastle LNG Terminal, A Barrel Full, accessed April 2017
  3. 3.0 3.1 Ian Kirkwood, "Fitzgibbon calls for Newcastle gas import terminal," Newcastle Herald, March 1, 2017.
  4. Gabrielle Chan, " The Guardian, May 22, 2017.
  5. Newcastle port could be home to $500 million gas import terminal, Sydney Morning Herald, Dec. 5, 2018
  6. EPIK Inks Engineering Deal for Newcastle LNG Terminal, World Maritime News, Apr. 8, 2019
  7. Zara Margolis and Cassandra Hough, "Queensland company to be first in the world to export LNG from coal seam gas," ABC, December 23, 2014.
  8. 8.0 8.1 Jargon Buster. BG Group. Retrieved on 18 July 2010.
  9. "Federal Government approves coal seam gas projects in central Queensland" news.com.au, Oct. 22, 2010.

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