Blue Gum Gas Project

The proposed Blue Gum Gas Project is uniquely poised to capitalise on the forecast gas shortages and steeply rising gas prices predicted for the east coast of Australia from 2017. The project will provide Queensland industry with a reliable new source of price-competitive gas which will help to bridge the gap of gas shortages in coming years, when LNG exports are predicted to commence. Developing the Blue Gum Gas Project will be Carbon Energy’s primary focus across 2015-16, with a goal of producing gas within three years from project commencement.

What is the Blue Gum Gas Project?

The Blue Gum Gas Project will involve an expansion of Underground Coal Gasification (UCG) activities on Carbon Energy’s existing Bloodwood Creek site, and the construction and operation of a Synthetic Natural Gas (SNG) Plant on Carbon Energy’s adjacent Blue Gum property.
Pending a decision by Government enabling Carbon Energy to progress the commercial project, Carbon Energy is in discussions with potential foundation customers for the project in order to provide a solid project funding framework.

Project Benefits

The Blue Gum Gas Project will deliver the State and local communities substantial benefits. Based on developing a 25 PJ per annum synthetic natural gas (SNG) processing plant at our Bloodwood Creek site and adjacent Blue Gum property (located approximately 45km west of Dalby in the Surat Basin), approximately $650m of capital investment would be required at the project sites. The project would support the State economy through generation of around $9.15m in State revenues annually. 

Community Benefits

Importantly for the Western Downs, over 1,000 jobs will be generated during construction with around 150 new permanent jobs for ongoing site operations. Additionally, it is anticipated that the project could also save upwards of 400 manufacturing jobs as the new gas supply secures the future of local manufacturing industry currently under threat from projected domestic gas shortages.

SNG is suitable for transport to users by existing natural gas pipelines. Five major natural gas pipelines surround the Blue Gum Gas Project site, negating the requirement for disruption associated with construction of major infrastructure. In addition, there will be minimal disturbance of existing landowner property with negotiation required with only one landowner for access relating to a small pipeline between the Bloodwood Creek tenure and Carbon Energy’s adjacent Blue Gum property.

Groundwater Monitoring

A comprehensive groundwater quality monitoring program has been undertaken and reported monthly to the Department of Environment and Heritage Protection (DEHP) since the trial began in September 2008. Over 2000 water samples have been taken across 8 years from a 1km2 area, proving to Queensland that we do not affect your groundwater supply.


Contact the Project Team

Our project team is available to answer any questions you may have:
Phone: 1800 720 468 (lines open 830am-500pm) weekdays
Email: Bluegum@carbonenergy.com.au
Post: PO Box 2118, Toowong QLD 4066