An aerial shot of the Australia Pacific LNG facility on Curtis Island.
An aerial shot of the Australia Pacific LNG facility on Curtis Island.

Qld’s bid for funds for Curtis Island LNG infrastructure

QUEENSLAND has renewed its campaign for federal funds for new gas pipelines and infrastructure at Curtis Island to shore up more gas for the east coast market.

Queensland Energy Minister Dr Anthony Lynham raised the issue with Federal Energy Minister Angus Taylor after Friday's Energy COAG in Perth.

Dr Lynham has called for Canberra's support for feasibility and other work into electrifying LNG facilities at Curtis Island, so the gas now used to power processing could be redirected into the market.

He is calling for support for a new multimillion-dollar transmission line to connect Curtis Island to the National Electricity Market.

In return, Queensland would support the federal government's rebooted emissions reduction scheme, including the $255b emissions reduction fund aimed at rolling out new generation and transmission projects.

"If Minister Taylor is looking to invest in energy infrastructure, Queensland has options that will deliver gas to manufacturers and industry," Dr Lynham said.

"That's how you drive down gas prices and fuel jobs and investment: by delivering more gas and that's what both of these infrastructure investments could do.

"I've been raising this since 2017; a new gas pipeline could open up gas in the Galilee and Bowen Basins.

"Access to new pipelines would make all the difference in opening up these new potential gas-producing areas."

Dr Lynham said through electrification the Curtis Island LNG projects could divert about 10 petajoules of gas annually back into the domestic market.

While still in its early days, the electrification of the gas sector could provide a huge opportunity for Australia's renewables industry.

Chevron and Woodside will adopt the technology at their Kitmat LNG facility in Canada.

Gero Farruggio of Rystad Energy, an independent energy consulting firm, said in September that the electrification of Australia's LNG sector could save 410 cubic feet of gas annually, almost equivalent to the entire east coast gas demand.

The Federal Government flagged earlier this year that it would be "engaging" with LNG plants about electrification.

The discussions follow Mr Taylor's announcement earlier this month that he wants to develop a series of state "deals" to strengthen the electricity market.