LNG electrification receives surprising $1.5M boost
THE campaign to deliver electricity to liquefied natural gas plants on Curtis Island has received a surprising major funding boost.
Federal Government Energy Minister Angus Taylor announced up to $1.5 million had been allocated to work with the State Government and industry to electrify the LNG hub.
While the State Government welcomed the funding, Energy Minister Anthony Lynham said there had been no advice from the Federal Government as to exactly what the funds were for.
"I raised the issue of funds for electrification of LNG processing plants on Curtis Island at a meeting of state, territory and federal energy ministers in Perth in December," Dr Lynham said.
Natural gas is used on Curtis Island to power turbines that create energy for the LNG plants.
Should it get off the ground, one of the major benefits of the electrification project is having the option to divert gas for use in the domestic market.
"The government thinks the electrification of Curtis Island has substantial potential to deliver more gas into the domestic market while lowering emissions," Mr Taylor said.
The Federal Government said a bilateral deal on the electrification of the Curtis Island LNG facilities was a high priority.
A spokeswoman for ConocoPhillips, who operates Australia Pacific LNG on Curtis Island, said the company had engaged with both levels of government regarding the project.
Last year Dr Lynham called for Canberra's support for feasibility and other work into electrifying the LNG facilities.
He said the project could divert about 10 petajoules of gas annually back into the domestic market.
The announcement was made as part of a number of funding commitments by the Federal Government for energy projects in central and north Queensland.
Others include up to $4 million for a feasibility study for a coal plant at Collinsville and up to $2 million for a pre-feasibility study for a pumped hydro-electric plant.
The funding comes from the $10-million Supporting Reliable Energy Infrastructure program.