The three to four million tonnes per annum GLNG project, a joint venture with Malaysia's Petronas, aims to be the world's first operation to convert coal seam gas (CSG) to LNG. Santos said the plantation project, at Fairview near Roma, would use water produced in the extraction of CSG and be the first state government-approved, large scale undertaking of its kind. The $50 million first stage of the plantation comprises two million native Chinchilla hardwood gum trees and agricultural feed crops over 2,234 hectares. Talks are underway to expand the plantation to up to six million trees. Santos' GLNG and Queensland president Rick Wilkinson said that more than 515,000 trees had been planted and 1,300 kilometres of irrigation pipelines had been laid so far. A further 715,000 trees would be planted in the next three months. "Gas producers around the world, and particularly here in Queensland, have been working to find a way to beneficially use up to tens of mega litres of water produced each day in the extraction of gas from coal seams," Mr Wilkinson said. "It is the major difference - and challenge - between extracting conventional natural gas and producing coal seam gas." Mr Wilkinson said the plantation may offer opportunities for commercial timber harvesting or carbon sequestration, or both. Santos and Petronas are currently proving up gas reserves in the Fairview/Roma area to feed the proposed GLNG plant on Curtis Island in Gladstone Harbour. A final investment decision for the GLNG project is expected to be made by the end of 2009. Joint ventures comprising the UK-based BG Group and the China National Offshore Oil Corporation, and ConocoPhillips and Origin Energy Ltd, also seek to convert CSG-to-LNG at Gladstone. All three of these projects aim to commence first production in 2014. (AAP) For full details for STOSY click here.
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