(EnergyAsia, August 24 2011, Wednesday) — Australia’s Queensland state will be producing more liquefied natural gas (LNG) than the nation’s current production rate within nine years, according to consultant EnergyQuest.

In a new report, “Australian Coal Seam Gas 2011: From Well to Wharf,” EnergyQuest said the state’s LNG capacity is set to exceed 25 million tonnes (Mt) by 2020.

The company’s CEO, Graeme Bethune, said:

“The demand for Queensland LNG from Asian buyers has been outstanding, considering that LNG from coal seam gas (CSG) has never been done before.

“Twenty-five million tonnes is more than Australia’s current LNG production of 20.8 Mt in the 12 months to 30 June this year.”

He said companies are making progress in managing land access and community issues, including making substantial financial contributions to local community programmes.

“However there is a strong feeling that local communities and local government bear a disproportionate share of costs of development, with state and federal governments benefitting from a disproportionate share of increased revenue,” Dr Bethune said.

The 260-page report also contained the following conclusions:

– Queensland’s LNG capacity could reach 32 Mt (8 trains) by the mid-2020s, subject to continued Asian demand and the delineation of sufficient reserves.

– Labour shortages are likely to be a major constraint on projects meeting their timetables. Shortages are only beginning to emerge but are expected to intensify in 2012, particularly for project sub-contractors.

– Good environmental practices and community relations are key success factors for the projects.