Doubts grow over ability of gas wells to feed Curtis LNG

DOUBTS about the ability of Queensland's coal seams to produce enough gas to feed Gladstone's LNG export plants are growing, with claims that many wells are not producing as expected and that more gas could be needed.

The concerns, which have been rejected by the three proponents spending $70 billion on projects to export gas through Curtis Island, have been backed up by Houston-based drilling supplier Superior Energy Services.

The supplier, which has turnover of more than $4.2bn and employs more than 14,000 people around the globe, says it foresees growth in its eastern Australian business because poor well performance means more drilling in Queensland and South Australia.

"When we are talking to the operators in Queensland, we hear from them that the coal-seam gas (wells) that currently have been drilled are actually not meeting the production expectations," SES head of Asia Pacific, Ruud Boendermaker, told investors in Houston last week.

"So what they have to do is to drill a lot more CSG wells in the next few years because of the commitments to the LNG trains that they are currently building in the north of Queensland."

Read the full story at The Australian.