Dalby (QLD) coal gas to be converted to LNG

The ABC reports that a pair of energy companies has signed an agreement that will see coal seam methane gas from southern Queensland liquefied in an Australian first. Liquefied natural gas (LNG) is natural gas that is cooled and concentrated and can be used as a diesel replacement or for generating power.

Gas extracted from Arrow Energy‘s Daandine fields near Dalby will be converted to LNG as part of the project. Arrow chief executive officer Nick Davies says the move will see more products made with gas, in turn strengthening the industry.

This is the first such small-scale plant in Queensland and liquid gas will be making the LNG, so they’ll be taking the gas from us and cooling it down to these very low temperatures, turning it into a liquid and then transporting it to their customers and their customers might be transport users or current LPG users.

To the best of our knowledge there are only two suppliers of LNG to the transport industry in Australia. One in NSW and the other in WA. This is good news for transport operators wanting to use LNG in Queensland.

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