GAS could soon be processed in the region with announcements of funding to a major state company this week.
With many campaigners in the region against any gas related activity in Limestone Coast, there has been much backlash to the announcement.
Regional petroleum giant Beach Energy will receive a multi-million-dollar windfall from the Federal Government to construct a new $22.6m gas processing plant north of Mount Gambier.
The $6m federal “gas acceleration” grant will help Beach pay for the construction of the new Katnook Gas Processing Facility.
It is understood the state-of-the-art new gas plant will have the potential to process up to 10 terajoules per day of gas from the conventional Haselgrove-3 discovery well.
The federal cash splash follows Beach pocketing $13m from the former Labor state government to drive gas production and exploration projects in the Penola/Nangwarry district.
The current mothballed Katnook gas plant is not up to standard to process gas.
A spokesperson from Beach Energy yesterday welcomed the announcement.
“Beach welcomes the funding commitment from the Commonwealth Government as we look to develop natural gas supplies for the region in a safe and sustainable manner,” the spokesperson said.
According to the government, the project will “accelerate” supply to the Limestone Coast market and help facilitate exploration of other targets in the region.
But yesterday’s announcement triggered a backlash from the region’s anti-gas mining fraternity, which described the grant as “corporate welfare”.
Limestone Coast Protection Alliance co-chair Angus Ralton yesterday slammed the decision, describing it as “complete madness”.
“I am pretty angry about this,” Mr Ralton said.
“Federal Energy Minister Josh Frydenberg has recently announced two battery projects for regional Victoria, but all we are getting in the Limestone Coast is fossil fuel.”
He called on the government to consider backing storage battery solutions for wind farms as well as solar farm projects for the region.
“This would mean they would get more bang for their buck in the long term,” he said.
Mr Ralton said gas plants had only a limited life, but renewable energy sources were “forever”.
“There are also more jobs in the renewable energy sector,” he said.
He said the Limestone Coast had been “landed” with gas projects the community did not want apart from a “few interest groups”.
The Federal Government yesterday announced the four projects funded across Australia would collectively receive $26m.
Resources Minister Matt Canavan said the projects would supply an extra 12.4 petajoules of new gas to the East Coast market by June 30, 2020, and an extra 27.6 petajoules over five years.
He said this extra supply would help safeguard Australia’s future gas security.
“Gas is vital to Australia’s energy security as a fuel, as a feedstock for industry and as a source of energy generation,” Mr Canavan said.
“We must continue to invest in the gas sector to ensure a secure, reliable and affordable gas supply. Bringing more gas to market will help Australian businesses remain competitive, create more jobs and reduce cost of living pressures on all Australians.”
Mr Canavan said the gas resources could be accessed in a responsible and balanced way, using the best available science.
“I encourage all states and territories with limitations on gas projects to rethink their blanket bans,” he said.
“The Gas Acceleration Program (GAP) is fast tracking projects with the best prospects of bringing significant new gas volumes to target markets by mid-2020.
“The GAP is a significant component of the Australian Government’s $90m investment in gas security, reliability and affordability for Australian gas users.”
