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Study: Queensland gas fracking project “just not economically viable”

October 03, 2022

ABC News:

Gas exploration projects in Queensland's Channel Country will be expensive to produce, generate "significant" carbon emissions and are likely to be abandoned, a report has found.

The report by Pegasus Economics, commissioned by environmental lobby group Lock The Gate, argued gas found in the Lake Eyre and Cooper Basins would cost energy companies millions of dollars to extract and produce.

"Although significant gas resources do exist in the Lake Eyre and Cooper basins, it's just not economically viable to actually extract," said the report's author, Alistair Davey.

Major player Origin Energy last month announced it would take steps to abandon its 11 exploration permits in the region to focus on the transition to clean energy.

The permits will now either be sold on to another energy company or forfeited back to the Queensland government, which granted the exploration leases last year.

The Queensland Resources Council said gas remained an important part of the transition to renewable energy and more gas resources would be needed in the future.

[Victoria Pengilley]

More: Gas production costs in Queensland's Lake Eyre Basin will be 'staggering', report claims

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