Queensland Premier Anna Bligh said “Given Queensland could host the first coal seam gas (CSG) to LNG industry in the world the Co-ordinator-General has imposed strict conditions on the project to ensure its social and environmental impacts are reduced and sustainably managed.

“This is the first (Queensland) LNG project to get environmental approval so it is important we get this right,” Ms Bligh said.

Queensland Co-ordinator-General Colin Jensen said that all of the proponents of LNG projects in the area will have to work together to optimise the pipeline route from Gladstone to Curtis island to minimise environmental effects.

Mr Jensen said that one condition of approval is that GLNG proponent Santos will be made responsible for negating any negative impact of CSG water on the environment.

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Santos said that it is working with joint venture partner Petronas on detailed engineering studies before a final investment decision on the $A7.7 billion project is made.

Santos is now awaiting Federal Government environmental approval and will have to obtain other environmental and production licences and safety approvals as required under state laws and as conditioned by the Co-ordinator-General before construction can begin.

The GLNG Project includes an initial 3.6 million tonnes per annum LNG processing train and associated infrastructure as well as a 435 km pipeline linking a compression station at Santos’ Fairview and Roma CSG fields in the Surat Basin to the liquefaction plant to be located at Gladstone. Initially 2,650 CSG wells will be drilled to feed the project.

The project includes the potential for a second train, which would commence operation one year after the first GLNG train. A gas supply of approximately 1,200 terajoules per day will be required for the two LNG trains. The company has also identified three other sites within the proposed GLNG precinct for the development of additional LNG trains. The precinct could contain up to five LNG trains if required.