cooper could meet 'all nsw gas needs'

Cooper could meet 'all NSW gas needs'
BY:SARAH-JANE TASKER From:The Australian March 11, 2013

THE Cooper Basin's vast potential for shale gas could meet NSW's needs for the fuel well into the future, plus be delivered into export markets through liquefied natural gas facilities.

Beach Energy managing director Reg Nelson said potential supplies from the basin, which straddles the South Australian and Queensland borders, were substantial, securing not just Sydney's gas future but also that of other cities on Australia's eastern seaboard.

Mr Nelson said the size of the resource from unconventional shale gas in the Cooper Basin was astronomical when compared with the output from conventional sources at Moomba, which had produced about six trillion cubic feet of gas over 43 years.

He said there was the possibility of 300 to 600 trillion cubic feet of gas from the Cooper Basin, and with data from the US suggesting between 10 and 20 per cent of that figure was likely to be able to be extracted economically, they were looking at a big resource.

Chevron has backed Beach Energy's long-held belief in the potential of the Cooper Basin with a $US349 million ($341m) deal to buy into two shale gas exploration projects. Chevron will buy up to 60 per cent of Beach's interests in two permits in exchange for up to $US349m in cash and exploration spending.

Mr Nelson said while there was a solid domestic market, depending on what was found during its exploration efforts, export options could be explored. "If the volumes are there, then clearly there are opportunities to look at export potential, whether it's via existing or planned facilities, or new facilities," he told the ABC's Inside Business program yesterday.

Shale gas, which is popular in the US, is starting to gain attention in Australia, with many saying the Cooper Basin could help support four massive gas-export terminals planned for Queensland.

BHP Billiton last week hinted it would start taking land positions in Australia after spending $US20 billion on US shale acquisitions in 2011.

It has been reported that BHP is looking to join Hess, which has shale ground in the Canning Basin and the Northern Territory, joining a raft of other big oil companies that have pushed potential Australian shale spending beyond $1.5bn.

Shell, which has big positions in offshore West Australian gas and Queensland's coal-seam gas, is also considering an Australian shale move.

"If you have such a large resource that is economically viable, you end up with stability of prices security and certainty of energy supply," Mr Nelson said.