extract from The Aust just now. so just shows that the supply of...

extract from The Aust just now.

so just shows that the supply of gas from Qld to Vic, NSW and SA, will become more difficult and more expensive. The LNG projects simply will not be able to redirect supplies down south.

ergo, makes Vic producers pretty attractive.
just shows how in demand the uncontratced Sole gas, maybe new C/H gas, and Manta will look!

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Gas buyers and sellers have cast doubt on the ability of Queensland’s vast coal seam gas fields to supply coming export and domestic demand in the wake of Origin Energy’s downgrade of reserves at its Ironbark coal seam gas project.
EnergyAustralia energy boss Mark Collette said the fields, which underpinned development of $70 billion of Gladstone LNG exports on the expectation they would provide gas for 20 years, were becoming harder to produce from.
“The free flowing first (CSG) wells were competitive with the big fields (of Bass Strait and the Cooper Basin), a lot of the rest is not,” Mr Collette said at the Australian Domestic Gas Outlook Conference in Sydney today.
“There’s lots of gas in the ground, but the cost of its extraction is higher than the older fields. We have not seen any shale-like breakthroughs in costs for coal seams.”
Australian Industrial Energy chief James Baulderstone, who is leading an Andrew Forrest-backed push for a NSW LNG import terminal, questioned whether 40,000 petajoules of Queensland CSG resources could be converted to reserves.
“In Queensland, the tier one fields are some of the best gas resources in the world ... but the tier 2 and 3 are more challenging,” the former Santos executive said.
“It’s becoming more expensive. There is gas there, but is there really 40,000pj of 2P (proven and probable reserves)?”
He pointed to Origin’s $500 million writedown of the Ironbark CSG project last month after proven, probable and possible reserves were cut by two-thirds.
“Ironbark is a reasonable field, it’s tier-two, so there is risk there.”
Mr Collette, whose business is a big gas buyer, welcomed plans for east coast LNG imports because they would reduce the impact of supply shocks such as a Bass Strait gas plant outage.
“LNG import terminals move big quantities of gas — one attractive benefit of this sort of infrastructure is that they provide physical insurance for our gas network,” he said.
“LNG imports offer the potential for floating gas storage — and this physical option could be really useful in maintaining the quality of the gas system we have come to expect.