The coal seam gas industry is expanding to meet the growing demand for energy from Asian nations. Metgasco (ASX:MEL), a major coal seam gas company, is currently considering developing a new offshore natural gas plant near the New South Wales coastline.
The floating liquefied natural gas plant was the subject of a memorandum of understanding with LNG Ltd. to conduct a feasibility study of the gas supply, transportation and sales from the CSG reserves of Metgasco. It will also consider sale of gas from conventional resources in the Clarence Moreton Basin in New South Wales to LNG Ltd's Fisherman's Landing project at Gladstone in Queensland.
The study will also consider the viability of being able to supply gas to a potential LNG project at the Port of Brisbane as well. The LNG Ltd's Fisherman's Landing project had been put on hold earlier as their potential supplier Arrow Energy has been taken over by Shell. It is now hoping to use Metgasco as a supplier.
Metgasco is building a gas pipeline to south east Queensland and feels that by extending it to either the Port of Gladstone or the Port of Brisbane would prove beneficial to them.