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State's North holds key to nation's energy security

News Release

www.premier.sa.gov.au

 

Hon Tom Koutsantonis

Minister for Mineral Resources Development
Minister for Industry and Trade
Minister for Small Business
Minister for Correctional Services

Tuesday, 28 June 2011

Minister for Mineral Resources Development, Tom Koutsantonis, has described the proposal of a
$7.5 billion clean fuel production project in the State’s far north as having the potential to secure the nation’s energy supplies into the future.

Central Petroleum Limited and Allied Resource Partners announced to the Australian Stock Exchange yeasterday morning of their intent to establish a $7.5 billion gas to liquid in the Pedirka Basin, in the State’s far north, overlapping the border with the Northern Territory.

After meeting with the companies, Mr Koutsantonis said the project was of unprecedented scope and would be of “international significance”.

“This project will be potentially of a scale similar to Olympic Dam and of national, if not international significance,” he said.

“It is proposed the project will utilise Underground Coal Gasification and Gas to Liquid technologies to produce an estimated minimum of 60,000 barrels of “ultra clean diesel fuel” in the first stage of development alone.

“It is forecast the project could stretch to produce anywhere from one to three million barrels of clean diesel fuel per day, which equates to roughly the same output of Kuwait

“The numbers that are being mentioned would guarantee Australia’s energy security, and would also be of unprecedented economic benefit to the local and state economies.

“It would also have the potential to put Australia on the map as a major net exporter of oil.

“There has already been more than $100m spent in exploration of the area and the companies are now looking for $300m in funds to conduct a bankable feasibility study.

“The company has also voiced its wishes to utilise any deep water port, such as the planned Port Bonython port, to export the fuel internationally.

“These are exciting times for South Australia’s mining industry and in the next five to ten years will be a real boom time for our communities, work force and economy.

“Since coming into power the Rann Labor Government has seen the number of operating mines quadruple with more than 30 more projects in the pipeline nearing the development stage.”