SURAT BASIN
NEWS
27 November 2014
$1.30 inc GST
INSIDE Massive village under way at Miles Page 4
Workers drain from towns to camps Page 7
Surat Basin NEWS Thursday 27 November 2014
PAGE 1
SURAT BASIN NEWS
JOURNALIST'S
NOTE
THE Queensland Government’s Surat Basin Population Report has quantified what many residents, businesses and even visitors had deemed to be unquantifiable. The report, released this month, painted a clear picture of the sheer size of the non-resident workforce in the region in the last week of June. It found there were 14,490 non-resident workers in the region during that week - a number that is hard to fathom. When you consider the potential benefits to business and industry as a result of having those workers here, the mind boggles. But the same applies to the strain those workers put on local infrastructure. The report also found more and more workers were moving from towns like Dalby, Chinchilla and Miles, to rural accommodation camps, many of which are on petroleum leases. Western Downs Regional Council Mayor Ray Brown rightly pointed out that local government should have a greater say in the location of “out-of-town” company camps. Cr Brown argued the region was footing the bill for these workers but communities were not benefiting from non-residents’ presence. It is families that the region wants to attract. Families whose children will attend local schools, join sporting clubs, and build our communities for the future. Rural “fly camps” might be convenient for some large companies but as the industry transitions to the long-term operations phase, moving families to our towns should be their highest priority.
THE NEWSPAPER
THE VISION
The Surat Basin News publishes every month and will be delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle. It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region. Surat Basin News is a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin.
Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.
ONLINE Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them.
DISTRIBUTION The Surast Basin News is inserted into the four dominant local newspapers for the region: the Chinchilla News and Murilla Advertiser, Western Star Roma, Dalby Herald and The Chronicle Toowoomba.
PURCHASE FROM Newsagents in - Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope
WEBSITE
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TEAM GENERAL MANAGER David Richardson Chinchilla 07 4662 7368 manager@suratbasin.com.au
ADVERTISING MANAGER Laurel Ison Chinchilla 07 4662 7368 advertise@suratbasin.com.au Karin-ane King Roma 07 4662 2411 karin-ane.king@suratbasin.com.au Nicole Boyd-Taylor Dalby 07 4672 5500 nicole.boyd-taylor@dalbyherald.com.au
EDITOR
Jim Campbell
PAGE DESIGN Beth Walker
View our previous editions on www.issuu.com/suratbasinnews
SURAT BASIN NEWS 12 Mayne Street Chinchilla Q4413 PO Box 138 Chinchilla QLD 4413
UPDATES Regular updates on www.suratbasin.com.au
PUBLISHED
THE
INDEX IN THE NEWS
The Surat Basin News is published by Chinchilla Newspapers Pty Ltd 12 Mayne Street O’Brien back for Labor............................18 Chinchilla Q4413 Behind the Desk ......................Pages 20-21 The Surat Basin News is printed by APN Print 50 Industrial Avenue Toowoomba
BUILDING THE BASIN
FRONT PAGE: There is a push for MPC goes gold ................................Page 23 non-resident workers to be based at Landtrak starts village project......Page 5 camps in towns, rather than in rural Cockatoo Coal strikes deal ...........Page 24 locations. Turn to Page 7 for the full Forum coming to Chinchilla...........Page 6 report. Giovenco Industries feature ..Pages 25-27 Photo supplied by Dan Proud Worker population booms ..............Page 7 Photography. Santos ramps up in Basin ...............Page 8 PLACES AND FACES
OPINIONS
Enterprise Evening .................Pages 28-29
....................................................Pages 12-15 QGC Social Investment .................Page 30
DOWN TO BUSINESS
Trades and Services ......................Page 31
Wellcamp Airport takes off ..........Page 17 Thiess’ huge donation ...................Page 32
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THIS WEEK
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Prof Santos said the gases were found to be consistently elevated in the Tara gas fields
NEW RESEARCH: A study has found levels of methane gas emmisions near some wells in the Tara region are high.
METHANE LEVELS UNDER SCRUTINY AT TWO SITES
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TARA FIGURES ‘ELEVATED’
UNIVERSITY study has found methane levels in coal seam gas fields near Tara are “consistently elevated”. The peer-reviewed Southern Cross University article, the first into the subject, was published in the international journal Air, Water and Soil Pollution. The three authors Dr Damien Maher, Professor Isaac Santos and Dr Douglas Tait gathered data for one day from public areas in and around gas fields near Tara and Casino mapping the atmospheric gas levels. Prof Santos said the gases were found to be consistently elevated in the Tara gas fields,
but much lower in the yet-to-be-developed Casino site. “CSG is often assumed to be a cleaner fuel than coal in terms of greenhouse gas footprint,” he said. “However, if methane is being lost to the atmosphere during the extraction, processing and transportation processes, this assumption may not be valid.” Prof Santos said it was difficult to blame the CSG industry for the readings due to a lack of baseline data before mining began. However, Dr Maher, the lead author, said the methane emissions were more chemically similar to CSG methane than methane from
feedlots, vehicles or wetlands. “What we can say is we mapped areas in the gas fields and around the gas fields and the levels were much higher inside them,” he said. Dr Maher said if the higher readings were from gas wells it was in the gas company’s best interests to correct them to stop their product seeping into the air. He said methane readings in Tara were up to three times higher than the highest readings in Casino. The anti-gas Lock the Gate Alliance has jumped on the report which it says shows the industry is “devastating for human health
Surat Basin NEWS Thursday 27 November 2014
and the environment”. But industry group Australian Petroleum Production and Exploration Association dismissed the claims. APPEA chief technical officer Rick Wilkinson noted the report itself said there was no evidence blaming the industry. “Hyperventilating by anti-gas organisations who draw their own conclusions from the university’s nine-page report add little to the discussion about how we produce vital energy resources,” he said. Mr Wilkinson pointed to a CSIRO report which stated the median well methane emission rate was equivalent to four cattle. –
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IN THE NEWS
PAGE 4
Surat Basin NEWS Thursday 27 November 2014
IN THE NEWS
Completed rooms at the village will boast a queen-sized bed.
Room to move is a big selling point of Landtrak's new modular rooms.
VILLAGE LIKE NO OTHER FOR MILES
BEDS BY THE TRUCKLOAD WORK UNDER WAY AT LAYCOCK RD SITE
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COLOSSAL accommodation village is taking shape on the outskirts of Miles. The Archers Accommodation Village, being pushed by Landtrak Corporation, received council approval for 1292 guest rooms in September last year. But the long-term vision for the project is much larger, with managing director Paul Czislowski saying it would eventually expand to 3000 rooms. Local contractors like John Mullins Plumbing and Kerwick’s Earthworks have been at the Laycock Rd site for the past few weeks. A huge $4 million kitchen facility was trucked to the site just last week. The progress comes as Black Diamond Group’s 652-room village, located about 2km north, was shelved due to a “lack of guaranteed demand”. But Mr Czislowski said investors from Singapore and Hong Kong had backed his $250 million project.
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They can see the benefits of it and they have an appetite for this type of project. Managing director Paul Czislowski “They can see the benefits of it and they have an appetite for this type of project,” he said. The 20-hectare site, which borders Miles Golf Course, would eventually boast swimming pools, tennis and squash courts, and medical and social facilities. “It will basically be an entirely new community, but it will very much embrace the surrounding Miles community at the same time,” Mr Czislowski told Surat Basin News in September. The developer said he planned to initially build 600 rooms on site, saying the market for accommodation was growing.
ABOVE: Miles plumber John Mullins has been contracted to help get Landtrak's ambitious project up and running. OPPOSITE PAGE: Overseeing plans at the Laycock Rd site at Miles are (from left) Miles plumber John Mullins, and Mark Collyer, Paul Czislowski, and Tony Smith from Landtrak. “A lot the camps on petroleum leases have expired and are being consolidated,” he said. “Companies are indicating they want a central hub for workers.” The Archers — named after the Archer brothers who explored the region with Ludwig Leichhardt — would be connected to Miles’ sewer, water, and power systems. Mr Czislowski claimed part of the planning process was lobbying the State Government for an extra water allocation of 5000EP
Surat Basin NEWS Thursday 27 November 2014
(equivalent persons) for the town of Miles, which was granted earlier this year. There are several demonstration rooms at the Laycock Rd site already, as well as the kitchen and 1000-person dining hall. Civil construction work is still being carried out. Mr Czislowski expected construction to be completed by with workers moving in as early as
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IN THE NEWS
KEY PLAYERS TO MEET
FORUM WILL BRING ANSWERS A FORUM will be held in Chinchilla next month bringing together executives from the major players in the coal seam gas industry. The December 11 event will be an opportunity to provide clear information to businesses in the region on the companies’ KEY PLAYERS: Politicians, business people and industry leaders met at the GasFields Community Leaders Council plans for the coming years. meeting at Toowoomba. Chinchilla Community Commerce and industry (CCCI) is working towards the event with the GasFields Commission. The idea spawned from the GasFields Community Leaders Council meeting held in Toowoomba this month. At the meeting, the major onshore gas proponents in the Surat Basin provided information on their future workforce numbers and local content policies. QGC managing director Mitch Ingram was one of four major onshore gas proponents to address the gathering of local and state government, community, business and rural landholder representatives attending the forum organised by the GasFields Commission. Commission chair John Cotter said in gross terms the onshore gas industry was transitioning from a construction peak of about 40,000 jobs to 12-14,000 jobs over the Surat Basin businessman Geoff Campbell (right) of Country Petroleum with Director General of Department of Natural next 18 months, however most of those long Resources and Mines, Brett Heyward. Photos Contributed
term production phase workers would be based in the Surat Basin. “The proponents advised that during this next phase they expect to drill in total around 900 wells per year over next 30 years which will also provide additional opportunities for local business in the supply chain,” Mr Cotter said. “The proponents also indicated an ongoing commitment to utilising local businesses that can meet the stringent requirements of the companies and the onshore gas industry.” Mr Cotter said the Commission was currently liaising with onshore gas proponents, the Toowoomba Surat Basin Enterprise (TSBE) and chambers of commerce about how best to communicate this information on future opportunities to the Surat Basin business community. Chinchilla motel owner Bernard McGovern said information from the companies was critical in planning business strategy for the next five, 10, and 20 years. “Having a business in a small town there’s lots of rumours that go around about job numbers, where the projects are at, where it’s not at, and where it’s been delayed.” Contact the CCCI for information about the forum by emailing info@chinchilla.org.au
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IN THE NEWS
A THIRD MINING DEATH
A HUGE WORKFORCE: There were almost 15,000 non-resident workers in the Surat Basin in the last week of June. Western Downs Mayor Ray Brown has called for more workers to be accommodated in camps closer to towns. Photo: Dan Proud Photography
POPULATION STILL RISING make up 9100 – or 21% – of the 42,590 people in the Western Downs, employed mainly in coal seam gas construction, drilling and production projects. The report also revealed 80% of FIFO and DIDO workers stayed in rural areas rather than towns. The number of non-resident workers living in towns also fell by more than 800 people in the 2013–14 financial year as CSG construction moved to more isolated areas. Western Downs Regional Council Mayor Ray Brown said his council had always maintained that it wanted workers’ camps close to towns. Cr Brown has asked Deputy Premier Jeff Seeney for a greater say on where mining companies choose to establish worker accommodation villages. “Under the state act, companies are allowed to have accommodation on their tenements,” he said. “What we’ve asked for is for local governments to have a say in the
How the figures compare Non-resident population estimates in June, 2014 ■ Toowoomba: 180 ■ Maranoa: 5210 ■ Western Downs: 9100
establishment of these out-of-town company camps, as they have no beneficial use to local communities.” Cr Brown said the region was footing the bill for these workers but communities were not benefiting from non-residents’ presence. “It’s no good leaving legacies such as building sewage or water systems out of the towns; you need to build legacies that will be left with the community,” he said. “The biggest asset we’ve got is people. It’s not the gas or the coal or the cattle, it’s actually people. And we want to build communities around people, not gas.”
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months. Roma police Crime Investigation Branch’s Detective Sergeant James Steginga confirmed a 42-year-old worker was found dead at the APLNG Reedy Creek camp near Yuleba on November 15. Roma police are reportedly investigating the sudden death. Det Sgt Steginga said the death was still under investigation, however it was considered “non-suspicious”. The man was discovered at 5.45am at the worksite. It is believed the Townsville man was a Fly-In Fly-Out worker. It is the third worker death in the Surat Basin in three months. First a 29-year-old male died as a result of injuries from an operational incident on September 15, also at Origin’s Reedy Creek work site. The Gold Coast man was a contractor for Origin Energy and a WDS employee. Last month on September 12, an Ostwald Brothers worker was also found dead in his room at the nearby Eurombah Creek camp. ■ Contact Lifeline on 13 11 14 for support.
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HE number of non-resident workers in the Surat Basin has continued to climb year after year, but a recent report has found many of the workers are being moved out of towns. The Queensland Treasury’s Surat Basin Population Report, released this month, has provided a more accurate insight into just how many workers are in the region. Annual data released by the Australian Bureau of Statistics does not include non-resident workers, but these latest State Government figures show the Surat Basin is far from slowing down. In late June, when the data was sampled, there were 14,490 non-resident workers on-shift in the Surat Basin. This was 2010 more workers than at the same time in June last year, and 8050 more workers than in June, 2012. The Western Downs has the largest non-resident population in the Surat Basin, according to a Queensland Treasury report. Fly-in, fly-out and drive-in, drive-out workers
THIRD coal seam gas worker in the Surat Basin has died in just three
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IN THE NEWS
RIGOUROUS ASSESSMENT OF CSG PROJECT UNDER WAY
YOUR SAY ON SANTOS PLAN PROPOSED EXPANSION OF SURAT BASIN OPERATION HAS POTENTIAL TO CREATE 1900 JOBS
Q
UEENSLANDERS have been invited to have their say on a proposed expansion of Santos GLNG’s Surat Basin gas field operations that could see another 1900 jobs created. The Queensland Coordinator-General has released a draft Environmental Impact Statement on the proposed project and will
undertake a rigorous environmental assessment of it before any decision is made. Deputy Premier and State Development Minister Jeff Seeney said the potential expansion of Santos GLNG’s coal seam gas fields in the Surat and Bowen basins could create 1700 jobs for Queenslanders during construction and a further 200 ongoing
operational jobs. “The proposed Santos GLNG Gas Field Development Project entails the progressive development of 35 petroleum tenements covering around 11,000 square kilometres in the south-west of the state,” Mr Seeney said. “These tenements are located across areas in the vicinity of Roma, Wallumbilla, Miles, Surat, Wandoan, Taroom, Injune and Rolleston and could lead to about 6000 production wells and necessary accompanying infrastructure being constructed progressively over the next 20 years.” He said if the project goes ahead, it would provide considerable medium and long-term job opportunities for the region. “However its expansion must strike the right balance between the environment and existing land uses,” he said. “We promised to grow the resource pillar of our economy and Santos GLNG’s expansion proposal demonstrates it has confidence in Queensland’s liquefied natural gas industry.” The Coordinator-General is conducting a single assessment on behalf of the State and Federal governments with consultation set to occur from 10 November to 22 December 2014. MORE WELLS: Santos has applied to build thousands more gas wells in the Surat Basin. Crews are pictured here The public have been invited to have their working on the Santos GLNG pipeline, which will transport gas from the Surat Basin to Curtis Island.
MORE INFORMATION Printed copies of the EIS can be viewed at all major libraries in the Maranoa, Banana and Central Highlands shires and at Santos GLNG shopfronts. ■ Biloela Library: corner of Grevillea and Melton ts ■ Dalby Library: 107 Drayton St ■ Emerald Library: 44 Borilla St ■ Roma Library: 38-44 Hawthorne St ■ Santos GLNG Roma Community Shopfront: 80 McDowall St ■ Santos GLNG Taroom Community Shopfront: 37/39 Yaldwyn St say and provide input into the EIS. Submissions can be emailed to SantosGLNG-GFDP@coordinator general.qld.gov.au or posted to the Coordinator-General, c/- EIS Project Manager - Santos GLNG Gas Field Development Project, Coordinated Project Delivery, Office of the Coordinator-General, PO Box 15517, City East Qld 4002. To view the EIS visit www.dsdip.qld.gov.au/ assessments-and-approvals/santosglng-gas-field-development-project.html
FIELD OF SOLAR DREAMS FOR WORLD TO SEE ONE DARLING DOWNS FARMER’S POWERFUL MESSAGE
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DARLING Downs farmer has sent a direct appeal to world leaders attending the G20, ploughing the message GO SOLAR in giant letters in a field. Rob McCreath, a Felton farmer who led the fight against Ambre Energy’s plans to set up a petrochemical plant near his home, said he was prompted to take action after Brisbane Airport rejected a billboard calling for climate change to be put on the G20 agenda. “Farmers are at the pointy end of climate change,” Mr McCreath said. “Last year was our hottest on record, this one’s shaping up to be even worse, and we’ve got a raging drought over a vast area. “In spite of the overwhelming scientific evidence, our idiotic politicians are hooked on coal and gas, which is the cause of the
problem. “Australia is one of the richest per capita countries in the world, with the highest per capita greenhouse gas emissions in the developed world. We have huge reserves of sunshine, so making use of it is simply a matter of common sense. “Our government’s reluctance to do so is an international embarrassment. “Unlike coal, solar power really is good for humanity, because it can provide the clean energy needed to lift people out of poverty across the world, without stuffing up the climate even more.” Mr McCreath said he had hoped Angela Merkel would “shirt-front” Tony Abbott and ask “If Germany can go solar then why on earth can’t Australia?”
GO SOLAR: Darling Downs farmer Rob McCreath found a unique way to attract attention to the renewable energy cause during the G20 Summit.
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Surat Basin NEWS Thursday 27 November 2014
IN THE NEWS
A
MILES VILLAGE PLAN GETS THE CHOP N INTERNATIONAL company has pulled the pin on its plan to build a $55 million accommodation village at
Miles. Black Diamond Group announced in June that it would build a 652-room village on land owned by local developer David Sweetapple, north of the Miles racecourse. The project had Western Downs Regional Council approval and, at the time, the company said it planned to have 500 of the rooms constructed and operating by the end of November. But Black Diamond’s Australian managing director Neville Katz said the project had stalled because the group “could not get guaranteed demand”. “We were confident there was an accommodation shortage and there would be someone willing to commit, but at this stage it appears not,” Mr Katz said. “It’s on the side until such time as we can get some kind of commitment.” The decision has devastated Mr Sweetapple, who had been working towards the project for several years. “It is extremely disappointing for the town as this investment would have had a multiplier effect, bringing jobs and opportunities,” he said. “The legacy to the community in the form of a community bus and financial support for local clubs and the economy of scale for
BAD SIGN: Tim Sweetapple unceremoniously removes the Black Diamond Group sign after the company pulled the pin on its planned village at Miles. Photo: Chris Sweetapple Photography Miles are now on hold.” Mr Sweetapple said “other groups” had expressed interest in the site and all offers were being considered “ahead of the expected spike in demand early next year”. Mr Katz said Black Diamond would continue to operate in the Miles area where it has a hire fleet and storage yard.
He said Black Diamond was working with Toowoomba manufacturer, PRITAB, to develop and launch a rapid delpoyment product line of transportable accommodation. The modules are expandable from 20-80 bed capacity, are transportable and can be fully operational in a day.
LOCKYER SHOULD ‘FESS UP’
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CTIVIST Group Stop Brisbane Coal Trains (SBCT) has renewed calls for former Australian Rugby League football captain Darren Lockyer to disclose the worth of his advertising contract with Australia Pacific LNG. “As celebrity spearhead of this latest APLNG media campaign, Deeper Questions, Darren Lockyer is claiming to be embarking on a personal discovery quest, in order to ask and answer the hard questions about CSG and its environmental impacts,” said SBCT spokesman John Gordon said. “The ads are carefully designed and scripted to give the audience the impression Lockyer is on a personal quest for the truth about CSG and its environmental impacts. That he is somehow undertaking his journey out of the goodness of his heart...that Darren is filled with CSG altruism and real concern for the bush.” “However in reality, we would allege Lockyer is simply being paid enormous dollars to put his hand on his heart and spruik for big gas. “In the name of being fair dinkum and to dispel any doubts, SBCT calls on Darren Lockyer to be totally upfront and disclose the actual dollars he is getting. Then let the Queensland and wider public decide on whether or not his so-called ‘Deeper Questions’ rhetoric is genuine?”
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PAGE 9
IN THE NEWS
CHINA LEADS IN RENEWABLES
A
USTRALIA is falling behind China and the United States on renewable energy investment, with a new report finding Australian investments fell 70% in the past year. The Climate Council report showed investment in renewable energy projects in Australia fell at the same time as investors in China and US ramped up. It found China had installed more renewable energy generation capacity than for fossil fuels in 2013, and retired some 77 gigawatts of capacity provided by coal-fired power stations between 2006 and 2010. Report co-author Tim Flannery said the lack of commitment from the Federal Government was already “hurting” the renewable energy industry. The government is still negotiating with crossbenchers and Labor over its plans for the renewable energy target, after a review earlier this year recommended cutting the target. Professor Flannery said the US was also investing more, now second only to China for installing renewable energy. The US plans to reduce its emissions by 17%, by 2020. Institute of Energy Economics and Financial Analysis director of energy finance studies Tim Buckley said further investment in thermal coal was “counter-intuitive”.
FROM SURAT BASIN TO THE WORLD
WORLD FIRST GAS DELIVERY NEXT MONTH SURAT Basin energy giant QGC is on track to deliver a world first next month. The monumental QCLNG project is the world’s first project to turn natural gas from coal seams into liquefied natural gas. And, next month, QGC will win the race to export gas from the Surat Basin to the rest of the world. A QGC spokesman said the gas would be bound for countries like China, Japan, Singapore, and Chile. The project had a budget of US$20.4 billion and has been under construction since 2010. The last four years has involved the expansion of natural gas production in the Surat Basin, the installation of a 540km buried natural gas pipeline network linking the gas fields to Gladstone, and construction
of a natural gas liquefaction plant on Curtis Island, where the gas will be chilled to a liquid for export. The plant will comprise of two production units, also known as trains, each with a capacity of 4.25 million tonnes per year. Gas has been transported from the Surat Basin to the plant through Australia’s longest large-diameter onshore pipeline network, which was completed last year. “This has allowed commissioning of the gas turbine generators, which have provided permanent power for the facility,” the spokesman said. Facilities on the island also include two LNG tanks, each of which will be able to store 140,000m3 of LNG – or about the same amount of gas needed to fill a ship.
“The structural integrity of both tanks has been successfully tested by being temporarily filled with seawater, which is denser than LNG. “At the same time work is continuing to build the second production train, which will be commissioned in 2015.” QGC expects to drill a total of 6000 wells over more than 4500sq km of QCLNG tenements in the next few decades. About 2300 wells have already been drilled. In the southern hub, west of Dalby, the Ruby Jo central processing plant (CPP) and six feeder field compression stations (FCSs) have been operating since June. All three new FCSs and the CPP they supply in the central hub, near Chinchilla and Miles, are operational.
SETTING SAIL: Gas from the Surat Basin will be transported to the rest of the world on huge ships like the “Mickie Harper”. Photo Contributed
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PAGE 10
Surat Basin NEWS Thursday 27 November 2014
IN THE NEWS
BERTING SET TO RETIRE NEXT YEAR
W
ESTERN Downs Regional Council chief executive officer Phil Berting has announced he will retire when his current contract finishes next year. Mr Berting, 57, who has worked in local government for 28 years, announced to staff that he would see out his current contract, which is set to finish in July. He worked for the Dalby, Wambo, Murilla, and Tara shire councils prior to amalgamation and was appointed interim CEO of WDRC during amalgamation in 2008. Mr Berting, who lives at Dalby, was then appointed by councillors as the ongoing CEO of the council. He said council would look to begin the recruitment process to replace his position as soon as possible.
CLIMATE CHANGE CHALLENGES
FUTURE IN ENERGY
T
HE CSIRO believes an “energy revolution” is coming – and Queensland should be at its centre. Speaking after a G20 conference in Brisbane, CSIRO energy and resources executive director Dr Alex Wonhas said energy exports – through gas and coal – remained vital to Australia, but there was a consensus action had to be taken on climate change. “But there certainly was strong consensus that we need to look at all available technology options and that, frankly, technology will play an absolutely vital role to solve some of the energy challenges that we are facing, both on the productivity side but, even more importantly, on the clean energy side,” he said. “Either to clean up existing ways of producing and consuming energy or, frankly, to leapfrog or and replace existing forms of energy. So, just watch this space. “I think what’s going to happen over the next 10 to 20 years in the energy sector will be possibly a revolution.” Dr Wonhas said energy remained vital to Queensland’s economy due to the coal, and soon, gas industries. “Energy matters to Australia because, just to give you one example, Australia earned $68 billion from the export of energy last year,” he said. “But, Australia also matters to the world of energy because Australia is currently the fourth largest exporter of LNG, but very soon
ENERGY REVOLUTION: A CSIRO director believes the Surat Basin and Queensland will be at the centre of an “energy revolution” in Australia. to be the world’s largest exporter of LNG. It’s the third largest exporter of uranium and it’s the second largest exporter of coal. “So I would say we’ve got very strong agreement that the demand for energy is going to grow, and energy will play an absolutely vital role to underpin further economic growth and also, very importantly, to help lift maybe the two billion to three billion people out of poverty who currently do not have access to clean and reliable
energy.” Despite Australia’s reliance on fossil fuels, Dr Wonhas said clean energy exports would be vital to the global economy in coming years. “There was also consensus, and you might be surprised to hear that, that the challenge of climate change, that obviously energy is very much exposed to, needs to be addressed,” he said. – APN NEWSDESK
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Surat Basin NEWS Thursday 27 November 2014
PAGE 11
OPINIONS
CHECK MATE FOR BEEF
.
COMMENT BARRY O’SULLIVAN Senator
I’VE always enjoyed playing chess against my grandsons. I find it a way to teach them about the importance of forward thinking and planning and how each move forward can reap definitive benefits down the track. Chess teaches you to move a piece across the board that might only become valuable in the closing minutes of the game. And while I would never profess to be a grandmaster, I appreciate the strategic thinking required to improve at the game. That is why I believe the free trade agreement (FTA) with China that was announced this week is a real check mate for our Western Queensland rural industries. The focus of the much reported FTA has been on the immediate benefits for Australia. But, if we take a longer term view, it is equally clear that the Queensland agriculture sector, especially the beef sector, has been placed in a prime position on the international board in the decades to come. Firstly, consider that Australian beef exports to China set new records in 2013 - totalling
AGRICULTURE IN PRIME POSITION FOR FUTURE GROWTH 153,000 tonnes, which is worth about $722 million. This was up from 35,000 tonnes (worth $149 million) the previous year – incredibly, this is a more than a four-fold increase in just 12 months. Overall, this represents about 57 per cent of the Chinese import market. The newly announced agreement builds on this solid foundation. The newly announced Chinese FTA will enable the elimination of tariffs on beef
imports (currently ranging from 12-25 per cent) within nine years as well as the elimination of the 12 per cent tariff on beef offal within four-seven years. Importantly, this will take place at a time when China’s star is rising. The World Bank predicts that before 2030 China may well become a high-income economy and the world’s largest economy. Furthermore, if China is able to continue to grow at solid rates and boost consumption, by 2020 it may well have the world’s single
largest middle class market. In fact, according to ABARES, between 2009 and 2050 the real value of beef consumption in China is projected to rise 236 per cent. It is clear that rising consumption and falling tariffs will improve the long term profitability of Queensland graziers. Alongside the agreements already signed with South Korea and Japan, it not provides clear economic benefits for Australian agriculture, but also serves to explain the central importance of the farming sector in our national economy. Far from the decision makers in Canberra, our farmers and rural communities can all too often be overlooked when policy is being formulated. But when the cold hard facts are illustrated, agriculture’s significant contribution to our national coffers is clear. Despite the drought that we are all fighting, our beef sector has much to feel optimistic about. Because the world class beef we offer will remain the envy of the world and the product of choice for the plates of the globe. And it will remain a product no country will be able to easily move against.
CAMP CULTURE DETRIMENTAL TO WORKERS AND TOWNS COMMENT Cr ROBERT LOUGHNAN Mayor, Maranoa Regional Council
H
OW much longer can the Queensland resource sector continue to shoot itself in the foot? BHP’s Caval Ridge and Daunia coal mines in the Bowen Basin created a new low by creating a 100% FIFO mining routine that sidelined local workers. The LNG industry now looks set to head down that path by forcing local Santos workers into fortnightly camp rotations. Local workers at the GLNG Wallumbilla Hub have been told they must conform to new arrangements which will essentially force them to leave their families and live in a camp for two weeks out of every four. The camp is less than half an hour’s drive outside Roma, a daily commute these workers have safely driven for years. The move is a real kick in the teeth for our local community.
The primary explanation Santos have given to their staff is the need to have them all employed under the same conditions as workers in other camps. A second explanation given to me is the concerns about workers driving to and from work. Understandable for the remote camps, but hardly for a camp just under half an hour’s safe drive from these people’s homes and families. I firmly believe that workers living within sixty kilometres or forty minutes drive of a camp, should be given the option of living in their own home. While this current move will only affect fourteen workers, they are long term and loyal employees who deserve better treatment. Make no mistake – Santos employees at the other camps, stores depots and offices, even those within our towns, will be the next in line. Imagine for a moment the outcry if the thousand odd Santos employees in Brisbane were told they could no longer live in their homes with their families and would be
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More urgently we need to help retain those people affected by the current move. How hard could it be to put on a bus at the start and end of each day as a goodwill gesture to these fourteen employees? That would send the clearest possible message that Santos is still interested in local employment. And while I’m unloading, I can’t overlook the Origin APLNG project which recently terminated a number of major contractors in the hunt for savings and efficiencies. As a direct result, JJ Richards and TDC Drilling have been forced to lay off 120 local employees between them. The treatment of TDC, who have been replaced by a Canadian company, is especially unkind given it has always supported the local economy and is one of the true champions of aboriginal training and employment in the Surat Basin. Generally speaking, the Maranoa has been a great supporter of the CSG industry, but the success of the major companies through this next phase must not come at the expense of our communities.
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housed in the Santos Tower to avoid half an hour in traffic on the way to and from work. Well that’s exactly what senior Santos people working in that tower and commuting from the outer suburbs and the Sunshine Coast are forcing on their staff in regional Queensland. This sort of inflexibility and old school thinking is exactly what our communities don’t want as we move into the operational and maintenance phase of the LNG projects. And it’s not the news that communities in New South Wales will be wanting to hear either as they consider the pros and cons of the LNG industry that appears to be heading their way. We have been told consistently by all the companies that this operational phase of the projects will be beneficial to our communities. If it’s done right it will be. I urge all the major companies to sit down with Councils to discuss how the reliance on the FIFO and camp culture might be reduced in favour of attracting and retaining more local workers.
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OPINIONS
FUTURE REMAINS POSITIVE
AUSSIES WILL LEAD IN ENERGY AUSTRALIA’S GAS EXPORTS ON THE INCREASE AS GLOBAL DEMAND FOR THIS FUEL GROWS MORE THAN ANY OTHER .
COMMENT MICHAEL ROCHE CEO Queensland Resources Council
T
HE global energy agency has forecast that Australia is set to become one of the world’s leading energy exporters, while also warning that energy poverty remains one of the world’s biggest killers. In its World Energy Outlook 2014 report, the International Energy Agency (IEA) said the future for energy exports from Australia remained positive as economic growth in highly-populated and emerging economies translated into increased, long-term demand. The report also says Australia will resume its position as the world’s largest coal exporter before 2030 on the back of strong growth in demand from Asia. Indonesia is currently the world’s leading coal exporter. As Surat region residents know, it’s not just coal set to grow with Queensland’s first liquefied natural gas (LNG) shipment planned for next month. Australia’s gas exports are set to increase from about 20 billion cubic metres in 2012 to 114 billion cubic metres by 2040 as global demand grows by more than any other fuel. In the absence of a ‘eureka moment’ in
energy production, the IEA expects fossil fuels will make up about 75 percent of global energy supply by 2040 – emphasising how important it is to keep the world’s focus on low-emission technology development. As environmental economist Dr Bjorn Lomborg told the G20 Brisbane Global Café, indoor air pollution – a result of energy poverty and the burning of solid fuel indoors – is now the world’s biggest killer. Around 730 million Africans rely on solid biomass for cooking indoors with the resulting air pollution responsible for almost 600,000 premature deaths every year. The IEA report says that by 2040, an additional one billion people could have access to electricity, but that would still leave more than half a billion in energy poverty. It was timely therefore in the after-glow of the G20 Summit to hear two major announcements delivering the state and the coal industry a needed confidence boost. They were the Newman Government’s plan to invest in the Galilee Basin rail project and the removal of tariffs on the state’s coal exports to China. The state’s Infrastructure Enabling Agreement with Adani Mining will help to kick-start its $16.5 billion Carmichael project in the Galilee Basin. It is a combination of hard-headed commercial investment nous and a visionary
approach to securing long-term benefits for the state. The end game is the creation of tens of thousands of jobs and a new wave of economic activity when the state needs it most. The government’s announcement, coupled with the State Bank of India’s $1billion line of
credit offer to Adani, are major milestones in Adani’s plan to export its first coal from Abbot Point to India in 2017. The announcements are also very good news for the communities in central and north Queensland that stand to benefit immediately from the opening up of the Galilee Basin coal province.
STRIKING THE RIGHT BALANCE IN OUR COMMUNITIES .
COMMENT Cr RAY BROWN Mayor, Western Downs Regional Council
T
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HE resource boom has brought many opportunities for future growth and development across the Western Downs region, but such opportunities also bring a number of challenges. One of the significant challenges facing Western Downs Regional Council is the need to keep pace with the impacts of the energy resources sector on our local communities, and the need to strike the right balance between our established
communities and the influx of workers needed to construct and operate resource projects. Despite the increased numbers of workers coming into our region, the establishment of workers’ camps and temporary workers’ accommodation on mining company tenements outside of our regional towns is beginning to have visible negative impacts on our communities, particularly in the towns of Chinchilla, Miles, and Wandoan. The Western Downs has the largest non-resident population in the Surat Basin, and these non-residents are not taking advantage of our local facilities outside of working hours, preferring instead to stay on company tenements. This means that our local communities and
businesses are not benefitting from the economic advantages these workers could be bringing into our region. Furthermore, the establishment of the necessary infrastructure, such as water and wastewater systems, for these out-of-town accommodation sites, will leave legacies that are of no beneficial use to the community once the resource and mining companies move on. We need to find a balance that ensures the infrastructure being built by these companies not only meets the needs of the resource sector, but also the longer term needs of our communities. We need accommodation that brings the transient workforce into our towns and
which will also leave a beneficial legacy that will enhance the liveability of our established communities. Recently, Council called upon the Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning, Jeff Seeney to make changes so that local governments get to have a say in the establishment of these out-of-town company workers’ camps. All levels of government and the private resource sector need to work together with regional communities to ensure that the issues which impact the communities hosting transient workforces are acted on, so as to guarantee long-lasting benefits to our communities and our future.
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PAGE 13
OPINIONS
UP CLOSE WITH THE LEVEE W
.
ELCOME to the latest edition of the Surat Basin News. This month has certainly been a busy one with Premier Campbell Newman visiting Roma to inspect the completed Stage One of the Roma Levee Bank with myself and LNP Candidate for Warrego, Ann Leahy. Lawrence Springborg, Minister for Health has also been out to Roma, meeting with South West Health and Hospital Board Members and inspecting Pinaroo Aged Care Facility in Roma. Senators Barry O’Sullivan and Matt Canavan have doing some kilometres travelling to Cunnamulla, St George, Dirranbandi, Mitchell, Bollon, Thallon and Roma, meeting with business people and landholders in the Murray Darling Basin. I have also been attending many of these meetings with the Senators where property rights, drought and telecommunications have been high on the agenda. The High Court’s decision to uphold Queensland’s strong anti criminal gang laws has been welcomed by many. This is a big win for the community and your readers would be interested to learn that criminal gangs were targeting some of our South Western Communities. Since October last year more than 1500 gang members or associates have been arrested on nearly 4200 charges and the reported crime rate across Queensland has dropped dramatically. A number of community groups are gearing CHECKING IN: Premier Campbell Newman and LNP candidate for Warrego Ann Leahy inspect Stage 1 of the Roma up to commemorate the First World War and several have been successful in obtaining Levee Bank.
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funding for local projects. The Roma Cenotaph will be enhanced with upgrade and beautification of the grounds that surround the existing Cenotaph. The Dirranbandi Arts Council will hold a workshop to create a sculpture to commemorate the Charge of Beersheba. Injune and District Memorial site will be enhanced with installation of bollards to protect the cenotaph with site, paving and footpath upgrades to be undertaken. The Mitchell Cenotaph which is heritage listed will be specially cleaned and restoration will be undertaken of the names and inscriptions. This is the only Cenotaph of its kind in Queensland. The Roma RSL will produce a 200 page book with the History of the Muckadilla Service Men and Women including that of Harry Murray VC who owned Blairmack Muckadilla. It is pleasing to see the community groups working to preserve our local memorials and telling the stories that will educate the future generations on the efforts and sacrifice of service men and women in a significant period in our regions history. Best Wishes until the next edition.
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COMMENT
OPINIONS
UNDER THE SPOTLIGHT
.
ONSHORE GAS INDUSTRY GOTTA LOVE TRANSITION IN THIS REGION THE SURAT BASIN I COMMENT
SHANE CHARLES CEO Toowoomba and Surat Basin Enterprise
COMMENT JOHN COTTER Chairman of the GasFields Commission Queensland
F
ROM my extensive travels around the Surat Basin over recent years I have witnessed and met many local businesses that have benefited significantly from the intensive construction phase of the onshore gas industry. However, many of these same businesses are now experiencing a significant slowdown as these projects are completed and transition to the production phase. I recognise that the onshore gas industry transition has also come at the same time as the agricultural sector is facing prolonged drought. For many local businesses that service both these industries it has had a double-whammy impact on their revenues. Local businesses in Dalby, Chinchilla, Miles and Roma have understood that the construction phase wouldn’t last forever, but what they have been asking for is greater clarity and detail about this next phase and rightly so if they are to plan and adjust their businesses to meet some of the long term opportunities. This onshore gas industry transition and what it means for local businesses and communities was the key focus of our latest GasFields Community Leaders Council South meeting held in Toowoomba earlier this month. At that meeting each of the major onshore gas proponents presented their forecasts of workforce numbers and locations to the government, community, business and rural industry leaders that were present. In gross terms the industry is transitioning from a construction peak of around 40,000 jobs to 12-14,000 jobs over the next 18 months. It is expected a majority of those long term production phase workers will live and work in the Surat Basin.
The proponents also advised that during this next phase they expect to drill in total around 900 wells per year over next 30 years which will also provide additional opportunities for local business in the supply chain. Other issues discussed in relation to local business and communities included: current payment terms which for some proponents and their contractors have extended out to 90 days and was adding to cash flow problems; greater clarity over the definition and requirements for local content used by some proponents and contractors; and the impact of worker accommodation and placement strategies on the long term benefits for regional communities versus temporary worker camps.
Delegates welcomed the industry projections provided at that meeting and the Commission is liaising with the onshore gas proponents, Toowoomba Surat Basin Enterprise (TSBE) and Chambers of Commerce about how best to communicate that information to the Surat Basin business community. .
In gross terms the industry is transitioning from a construction peak of around 40,000 jobs to 12-14,000 jobs over the next 18 months.
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WAS at a meeting with some senior government officials this week, and they remarked to me that the Toowoomba and Surat Basin region is the most exciting region in all of Australia. Indeed, we are in an enviable position. There have been a few activities of recent times that have reminded me of this. Last week, I led a delegation to China where we were able to talk to freight forwarders, tourism operators, regional airlines, beef buyers and logistics hubs about the infrastructure currently being constructed in our region. Australia is seen as a strong ally in China and is known for being a reliable and safe source of food, and we were able to further position our region as a strong partner for them. I was also fortunate enough to be invited to some events on the periphery of the G20 in Brisbane. Whilst we in the region may not have seen a lot of activity and flow on effect, I can absolutely assure you that the region was a topic at the forefront of many conversations. Our region is clearly regarded as a premier agriculture and resource rich region. Finally, the announcement in recent days of the Free Trade Agreement with China. This landmark agreement will give Australia unprecedented access to China’s 1.3 billion population expanding middle class who are hungry for Australian produce. The FTA will see tariffs on a number of key Australian produce exports reduced over time, including those on beef, dairy, grain products and horticulture. It will also have benefits for our colleagues in the resource sector. The global opportunities for this region are on our doorstep – not only do we now have the first public airport built in this country for more than 50 years that has just opened and is capable of exporting produce from the region to Asia, but we now have an agreement making exporting for farmers and producers to expanding Asian markets a lot easier and more profitable.
(; 081:$8."81<1%7;"+/ 000;<+1,<3<848743-5"+/;%2 PAGE 15
DOWN TO BUSINESS
PAGE 16
Surat Basin NEWS Thursday 27 November 2014
DOWN TO BUSINESS
AIRPORT TO BUILD REGION TOOWOOMBA’S WAGNER FAMILY HAS CELEBRATED THE HISTORIC OPENING OF THEIR AIRPORT
The QantasLink flight lands with the first passengers from FAMILY VISION: The Wagner family, from left; Neill, Henry, Denis, Joe and John Wagner, celebrate the opening of their Sydney. airport.
A
FTER 19 months and 11 days, the Wagner family can finally celebrate. Wellcamp Airport welcomed its first passengers yesterday when the inaugural QantasLink flight arrived from Sydney. A mix of the Wagner family, politicians, business leaders and the local community then flew to Sydney. Speaking just after landing in Sydney, Wagners chairman John Wagner said it was a great day for the Surat Basin. “It felt like a long, hard road, but we can’t take our foot off the accelerator,” he said. “We have to get tourism and agricultural exports going. “Now we have to go about building businesses around the airport and creating real value for the people of Toowoomba. “Our focus is to make sure people in the region support Qantas because without the airline we’ve got nothing.” Project manager and Wagners director Denis Wagner gave credit to his team for delivering the project so quickly. He said setting targets and meeting goals enabled them to pull off the feat, but admitted it wasn’t all “plane” sailing. With a team working seven days a week, 24 hours-a-day to finish in record time, the
project marks a huge milestone for the Wagners. “To see our vision of a jet-capable airport come to life and celebrate the first flight with our first customer QantasLink, it’s a moment we are all extremely proud of,” Mr Wagner said. “There were a lot of challenges through the process because it was the first greenfield airport built in 50 years. “There wasn’t a lot of experience to draw on, so we had to innovate.” And the work isn’t finished yet, with construction at the airport and business park to continue in coming months. Mr Wagner said although the airport had at times been criticised, especically by radio personality Alan Jones, the majority of residents in the region supported the project. “We had over 27,000 people come to our open day in September. “They were all fairly positive about the region and how things were going,” he said. QantasLink chief executive officer John Gissing said the inaugural flight to Wellcamp marked a momentous occasion in aviation history. “Qantas’ history began in Queensland over 94 years ago, so we’re delighted to be part of
this important milestone in the state’s history,” he said. “As Australia’s largest regional airline we understand the needs of regional Australia. “The new flights will stimulate tourism and business opportunities for the Toowoomba region. “QantasLink customers travelling to and from Brisbane West Wellcamp will enjoy our exceptional product and service as well as seamless connections to domestic and international Qantas services.” QantasLink will offer 11 return flights a week to and from Sydney and provide a Toowoomba-centric schedule of double daily services Monday to Friday and daily services on weekends. The airport is capable of accommodating the large passenger 747 aircraft. It is one of Australia’s longest regional runways and the second longest regional runway in Queensland. The facility was Australia’s first privately-funded public airport and the first public airport to be built in 50 years. The 300ha airport features a 2.87km runway, state-of-the-art 8000sq m terminal facility and is the anchor tenant of the 800ha Wellcamp Business Park. — Andrew Backhouse
THE Wellcamp Airport has put Toowoomba and the Surat Basin on the map and made it a key location for big business, according to Toowoomba and Surat Basin Enterprise CEO Shane Charles. “Connectivity is critical,” he said. “Suppliers and business people in the region now have access to capital cities. “Toowoomba is about to grow up.” Mr Charles said Toowoomba had long been perceived as a small regional town without adequate services. “Now that we have an international capable airport we’ll be promoted around the world,” he said. “It’s a great day for our region.” Toowoomba Chamber of Commerce and Industry president Andrew Wielandt said the airport created confidence in investors and businesses. “Toowoomba as a region has a great story. Between agriculture, education, health, and resources, we’ve got a good economic story to begin with,” he said. “What this does is help engender further confidence in what is frankly a fragile national economy.” Mr Wielandt said the airport would bring opportunities for new businesses. “The multiplier effect is significant,” he said. “For every dollar that is spent there is around three times that going into the economy. “That could easily go into the hundreds of millions of dollars.” Mr Wielandt said businesses were already seeing the benefits.
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Surat Basin NEWS Thursday 27 November 2014
PAGE 17
DOWN TO BUSINESS
FORMER MAYOR STANDS FOR LABOUR
O’BRIEN’S BID FOR WARREGO CAN HE BREAK THE 40-YEAR DROUGHT?
T
HE mayor who led Charleville through the 2011 floods will attempt to do what hasn’t been done in 40 years – win Warrego for Labor. Mark O’Brien immediately expressed concerns over the LNP’s response to the drought and its concentration on the mining industry when he was announced as the Labor candidate for Warrego. He came to national prominence as the Murweh Shire mayor when Charleville flooded in 2011. Mr O’Brien said the LNP government had ignored the rural Queensland industries. “I think the bush would be really keen if they had somebody who actually represented them who actually brought their concerns to the table,” he said. “You know we hear about the mining industry regularly in the media. There’s a fantastic industry in the bush called the sheep and wool industry that the government’s taken their eye off. It’s an industry waiting to be reborn.” At the 2012 election Mr O’Brien stood as an independent in Warrego where he outpolled MARK’S BACK: Former Murweh Shire Council Mayor Mark O’Brien, pictured here with former Premier Anna Bligh the Labor candidate. during the 2012 Charleville flood, will stand for Labor in Warrego at the next state election. LNP Warrego MP Howard Hobbs, who has represented the electorate since 1986, will retire at the next election. The LNP has preselected Ann Leahy as Warrego candidate. Deputy Premier Jeff Seeney said Ms Leahy was a strong candidate who LNP members chose. “I’m pretty sure Ann Leahy will make a good fist of representing us in Warrego,” he said. Ms Leahy said her advantage was that she had already travelled the whole electorate with Mr Hobbs. “I have good corporate knowledge of every community which certainly helps when
FAST FACTS ■ While Warrego has been a safe National, and now LNP, seat since the 1974 election it wasn’t always. From 1908 to 1974 Labor held the seat. ■ Members elected to Warrego generally hold their seat for over a decade. Neil Turner was elected for the then Country Party in 1974 and held the seat for 12 years. In 1986 Howard Hobbs replaced him and held it for 19 years. ■ Only two MPs have held the seat for less than 10 years since 1908 – Labor’s Jack Aiken and Harry O’Shea – while two Labor MPs, John Dufficy and Randolph Bedford, held it for 18 years each.
you’re trying to solve issues and move projects forwards,” she said. “It means I don’t have to go back over why they want to do something.” Opposition leader Annastacia Palaszczuk said, if elected, Mr O’Brien would be Labor’s “eyes for rural Queensland” because he was passionate about the bush. “It’s going to be a tough fight. We know it’s going to be tough out there in the bush. But we have the right person and Mark O’Brien is that person for the seat of Warrego,” she said. Ms Palaszczuk said Mr O’Brien was not a Labor member when selected. A date for the next election has yet to be announced but election rules stipulate it must be held before June 20, 2015.
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Surat Basin NEWS Thursday 27 November 2014
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PAGE 19
DOWN TO BUSINESS Origin - ASX Code: ORG
Transfield - ASX Code: TSE
Santos - ASX Code: STO
New Hope - ASX Code: NHC
13.50
1.990
2.70
14.40
13.00
1.950
2.60
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12.50
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15.80
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Oct 29
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Share price listed was accurate at close of business on the days listed in 2014
Oct 29
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Share price listed was accurate at close of business on the days listed in 2014
Nov 11 Nov 12 Nov 19
Oct 29
Nov 11 Nov 12 Nov 19
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Share price listed was accurate at close of business on the days listed in 2014
SMOOTH SAILING FOR MURRAY BEHIND THE DESK WITH MURRAY PEACOCK, BUSINESS DEVELOPMENT MANAGER (ENGINEERING) FKG GROUP ■ Can you tell us about your role? I focus on building and maintaining relationships with key stakeholders, clients and government representatives. I am based out of our new Toowoomba Head Office, but I also spend a lot of time on the road, servicing the Darling Downs and South West regions, out to our office in Roma.
engineering and transport projects, infrastructure works and development projects.
West Wellcamp Airport and Toowoomba Second Range Crossing.
■ What impact do you think the Surat Basin’s resources industry has had on Toowoomba? The Surat Basin’s resource industry has had a positive effect on Toowoomba, especially as ■ In what capacity does FKG operate in the we move into the maintenance phase of the Surat Basin? oil and gas industry. Many drilling and well The FKG Group provides construction, servicing companies have now established engineering and support services for the their bases/depots in Toowoomba, for many property, resources, infrastructure and reasons including its stable workforce, government sectors, and has a wide range housing affordability, medical, educational project experience in the Surat Basin. These and shopping facilities, easy access to projects range from building and managing Brisbane and the significant infrastructure camps, to construction of industrial facilities, being established, including the Brisbane
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■ What is your greatest accomplishment in life? Sailing in the 1994/95 50th Anniversary Sydney to Hobart Yacht Race. ■ What is the best advice you have ever received? Be positive.
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■ How do you keep busy outside of work? I am kept busy with two young boys, following them to their sports activities on the weekend, including sailing at Cooby Dam with the local Darling Downs Sailing Club, and fishing in our local catchments.
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Surat Basin NEWS Thursday 27 November 2014
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DOWN TO BUSINESS Cockatoo Coal - ASX Code: COK
BHP Billiton - ASX Code: BHP
Blue Energy - ASX Code: BUL
Leighton - ASX Code: LEI
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Share price listed was accurate at close of business on the days listed in 2014
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Share price listed was accurate at close of business on the days listed in 2014
Oct 29
Nov 11 Nov 12 Nov 19
Share price listed was accurate at close of business on the days listed in 2014
BRUCE KNOWS THE REGION BEHIND THE DESK WITH BRUCE HOLMES FROM SURAT BASIN REAL ESTATE ■ Can you tell us about your role? As Commercial & Industrial Manager for Surat Basin Real Estate, my role is as a problem solver to help businesses find suitable premises & assist developers to meet the needs of these businesses ■ In what capacity does Surat Basin Real Estate operate in the region? Our agency provides a one stop shop for sales and leasing of rural, residential and commercial real estate in Chinchilla and the surrounding area. ■ How do you think the coal seam gas industry has changed the Surat Basin? And for better or worse?
■ The economic base of the region has expanded so that there is a more vibrant and prosperous regional economy. ■ What opportunities do you see for new businesses entering the Surat Basin? There are a lot of niche businesses that are needed because of this strong regional growth. Demand for things such as telecommunications, security and training are sure to continue to grow. ■ What do you see in store for the region in the next five years? I can see that smaller towns in the Surat Basin such as Chinchilla will reach a kind of self-sustaining momentum that will open up
even more opportunities for businesses. If council can streamline its approval process we will be in a better position to take advantage of these opportunities. ■ How do you keep busy outside of work? I enjoy golf, reading and socialising with friends. ■ Who are the people you most admire – dead or living? My old boss was an excellent mentor who taught me a lot, but my dad was my first hero, like most boys I guess. ■ What is the best advice you have ever received?
Bruce Holmes has great confidence in the Surat Basin region. An old client of mine told me that you should buy when you don’t want to buy and sell when you don’t want to sell — I guess he meant that you should buy when everyone wants to sell and sell when everyone wants to buy. I think that shares guru Warren Buffet has a similar view.
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BUILDING THE BASIN
PAGE 22
Surat Basin NEWS Thursday 27 November 2014
BUILDING THE BASIN
300-STRONG CREW HAVE REASON TO CELEBRATE
JOB DONE, THAT’S GOLD AMAZING CONSTRUCTION FEATS RESULT IN COMPLETION OF 120KM STEEL PIPELINE
M
URPHY Pipe and Civil welding crews had cause to celebrate last month when they performed the final “golden weld” on the Comet Ridge to Wallumbilla Pipeline Loop Project near Roma. The 120km steel pipeline, constructed for Santos, took the 300-strong crew 10 months to complete and will enable increased flexibility to transport CSG to a liquefaction facility in Gladstone. MPC project manager Tom Fuller said it was pleasing to see the 7000 pipes required for the pipeline now in the ground and ready for operation. “Our hard working crews were able to achieve some amazing construction feats during the project, with a number of company records in welding, pipeline
.
Our production output was fantastic, but we couldn’t have achieved that without a strong focus on quality and safety. MPC project manager Tom Fuller stringing and trenching reset,” Mr Fuller said. “However, the most pleasing outcome is the very high standard we set in terms of quality and safety — the entire 120km was laid without a single pipeline defect, and without a single hour lost due to injury.
“It was the perfect end to the project to know that the hard work put in by the entire team — from the welders, machine operators and pressure testers, right through to our site administrators and safety personnel — have delivered the project to such a high level. “Our production output was fantastic, but we couldn’t have achieved that without a strong focus on quality and safety,” he said. Mr Fuller said the pipeline had now been handed over to Santos for commissioning and MPC crews had left Roma, but he thanked the local community for having them. “We’ve met a few great characters and really enjoyed our time in the Maranoa and we look forward to coming back to this part of the world on future projects,” he said.
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PAGE 23
BUILDING THE BASIN
ASIAN PARTNERSHIP
COCKATOO CROWS AT DEAL COCKATOO COAL FORGES DEAL WITH JAPANESE GOVERNMENT
A
$3.5 MILLION global partnership has been formed by Cockatoo Coal and a Japanese government owned corporation to undertake an extensive exploration program on Cockatoo’s wholly owned Dingo West project. The funding is being provided over a three-year period by Japan Oil, Gas and Metals National Corporation (JOGMEC) to cover all planned exploration activities at Dingo West – a 76km2 area on the South-Eastern limb of the Bowen Basin. Exploration preparation activities for the project have commenced, and first drilling activities are expected to begin this quarter. Cockatoo Coal managing director Andrew Lawson said the partnership with JOGMEC would assist in the effort to define PCI coal resources on the Dingo West project. He added that Cockatoo believed that PCI coal would become increasingly sought after in the next decade, particularly in East Asia. According to the Queensland Resources Council (QRC), the Dingo West partnership is good news for the coal industry and for Central Queenslanders QRC chief executive Michael Roche said the announcement showed that there was a solid
long-term future for coal. Japan has had a close coal sourcing relationship with Queensland for more than 50 years, and this announcement is a testament that the relationship will continue well into the future,” Mr Roche said. The Dingo West partnership gives support to predictions of solid ongoing demand for Australia’s thermal and metallurgical coal exports, including from Japan. Coal Minerals Council of Australia executive director Greg Evans said new research by Wood Mackenzie showed Australian coal would remain a feature of seaborne trade. Global demand for thermal coal is expected to grow by more than 70 per cent between 2014 and 2030, driven largely by electrification and industrial expansion in Asia. Australia is the second-largest exporter of thermal coal after Indonesia and most of the economies in developing Asia lack sufficient reserves to meet increasing demand. In addition, Wood Mackenzie reported that growing demand for steel from developing Asia would underpin rising demand for metallurgical coal, driven by China and increasingly India.
NEW DEAL: Cockatoo Coal, which has a presence in the Surat Basin, has forged a partnership with the Japanese government.
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Surat Basin NEWS Thursday 27 November 2014
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BUILDING THE BASIN
ADVERTISING FEATURE
SETTING UP SHOP
GIOVENCO HAS ARRIVED CUSTOMERS LINE UP FORNEW CHINCHILLA SERVICE
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ROM a humble project with QGC for just 12 staff in 2012, Giovenco Industries has grown to be the largest industrial scale painting and blasting business in the Surat Basin. The company opened the jewel in its Surat Basin crown just last week — a state of the art workshop and headquarters in Chinchilla’s Surat Basin Industrial Park. Some companies were so desperate for Giovenco’s services they had machinery parked in front of the business before the site was even operational. But that was no surprise to Surat Basin operations manager Troy Wischnat, who moved to Chinchilla with his wife Jorja and three young children in 2012. Mr Wischnat said Giovenco had established its reputation over almost 60 years as a business that provided only the highest quality products and services. “We know we would put the best quality product out in this region,” he said. The company’s roster exploded last year, peaking at a workforce of about 170. NEW SHOP: Staff at Giovenco Industries' Chinchilla headquarters (from left) Bryan Perry, Troy Wischnat, Trish That has come back to about 60 people Jacobsen, Katrina Waldron, and Dave Clarke, are excited to get to work. currently working on scaffolding, painting
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We know we would put the best quality product out in this region.. Surat Basin operations manager Troy Wischnat and blasting, and insulation projects. Mr Wischnat said the company had committed to the Surat Basin, and particularly Chinchilla, through the $1.5 million fit-out of its Osborne St facility. This year, Giovenco has already donated $10,000 to the community through commitments to Chinchilla’s Bowls Club, gymnastics club, golf club and Scouts. “Being a family company, we are part of the community we work in so it’s important to fit in and contribute to that community,” Mr Wischnat said. Giovenco Industries began in 1955 with five brothers working “on the tools” at the Caltex Refinery in Kurnell, New South Wales. Today, the company boasts a workforce of about 900 people.
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PAGE 25
BUILDING THE BASIN
ADVERTISING FEATURE
SOLID RECORD OF ACHIEVEMENT
COMPANY GROWS WITH REGION I
Claudio Giovenco cuts the ribbon at the opening of Giovenco’s new Chinchilla site with investors Tony and Marian Dawson and Western Downs Mayor Ray Brown.
N just the two years that Giovenco Industries has been operating in the Surat Basin, the company has already made its mark. The group has a vast portfolio of completed work, including projects at QGC’s Kenya Water Treatment Plant, Windibri Water Treatment Facility, and gas compressor stations. The successful projects and experience the company has gained in the Surat Basin have also enabled the company to expand north towards Gladstone, following the gas pipelines to Curtis Island. Operations manager Troy Wischnat said the group had 270 staff on Curtis Island working across the massive APLNG, QCLNG, and GLNG projects. Mr Wischnat said despite the coal seam gas industry’s booming construction phase drawing to a close in the Surat Basin, there were still plenty of opportunities yet to come. “There are still gas wells, compression stations and other infrastructure to be built and that will consistently happen for the next 10 years,” he said. “We’re confident in the fact that we will experience a real continuity of business now.” Giovenco has purchased a truck to enable pick-ups and delivery in the area, but the real boon for clients is the Osborne St facility’s huge storage yard. “We have the capacity to store bulk material at our Chinchilla yard, which means finished products can be delivered to the required sites as needed,” Mr Wischnat said.
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Robert and Spike Kidd and Devan Brown represent the local scout group at the Giovenco grand opening. Photos: Alasdair Young
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Surat Basin NEWS Thursday 27 November 2014
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BUILDING THE BASIN
ADVERTISING FEATURE
PAINT RUNS IN HIS BLOOD GIOVENCO OPERATIONS BOSS HAS HIS EYE ON THE BIG PICTURE
F
ROM the moment Dave Clark could walk he has been involved in the painting industry. The third generation painter has a passion for getting his hands wet with paint, but as Giovenco Industries Surat Basin operations superintendent, he also has to keep his eye on the bigger picture. Based at Chinchilla, Mr Clarke oversees all aspects of projects from the ground up. With more than 25 years experience he has a lot to offer, and he said he couldn’t be more excited about the company’s new set-up at Chinchilla. “I’ve seen a lot of changes in the industry over the years,” he said. “But this workshop would be the best set-up I’ve had anything to do with — I’ve seen nothing with the capabilities we have here.” Mr Clarke completed his painting apprenticeship with his father before venturing out into other employment opportunities. He has spent the past 12 years working in the oil and gas industry across Western Australia, New South Wales, and Queensland. With an internationally-recognised NACE Level 2 qualification, Mr Clarke said he was ready for whatever projects the fast-paced coal seam gas industry threw at him.
PERFECT PAINTER: Giovenco's operations superintendent at Chinchilla Dave Clarke is excited to be part of the best workshop he has ever seen in the industry.
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Carlo, Tony and Claudio Giovenco inspect the new workshop at Chinchilla.
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Surat Basin NEWS Thursday 27 November 2014
PAGE 27
PLACES & FACES
1
PLACES AND FACES 2
ROMA HOSTS TSBE ENTERPRISE TOOWOOMBA and Surat Basin Enterprise (TSBE) hosted its last official, and second last Enterprise Evening for 2014 this month. Sponsored by IOR Petroleum, the event attracted a crowd of nearly 160 to Roma’s Explorer’s Inn. Guest speaker for the night was chief executive officer for Senex Energy, Ian Davies.
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1. Maranoa Regional Council Cr Cameron O’Neill 2. TSBE General Manager for Agribusiness and Export and Senex Energy’s Ian Davies 3. Brad Howe from Howe Contracting and Stewart Morland from IOR Petroleum 4. James Howard from Annejeda and Brett Lorraway from IOR Petroleum.
4
5. Lance MacManus from TSBE, Aaron Wilson from RSEA Safety, Peter Wilson from Clark Equipment and Peter Wylie from CNW.
5
6. Senex Energy CEO Ian Davies addressing guests.
6 PAGE 28
Surat Basin NEWS Thursday 27 November 2014
PLACES & FACES
7
MORE THAN 150 PEOPLE TURN OUT FOR EVENT 7. Stewart Morland from IOR Petrolum, Maranoa Regional Council Mayor Robert Loughnan and Shaun Nolan. 8. James Donnelly from MAS Accommodation, Kaylen Clarris from P & K Clarris and Peter Conway from MAS Accommodation. 9. TSBE Board Member Mathew Ostwald and Peter Wilson from Clark Equipment. 10. Managing Director of IOR Petroleum Stewart Morland 11. Michael Power from LCR Group, Justin Walsh from Worksense Workwear and Safety and Theo Hennen from LCR Group.
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PAGE 29
PLACES & FACES
1
LENDING A HAND
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GC has unveiled long-term plans to deliver benefits to regional and south-east Queensland communities through a new program launched at Chinchilla. The QGC Social Investment Program comprising partnerships, projects and a community-based grants program will provide ongoing voluntary support to communities as the company supplies natural gas to domestic markets and exports LNG internationally over coming decades. Not-for-profit organisations within the Western Downs and Gladstone region are invited to prepare for the first round of funding under the new QGC Communities Fund which forms a key component of the program. This fund offers grants of between $10,001 and $50,000 to support organisations delivering short-term projects within their communities. QGC managing director Mitch Ingram said the company remained committed to supporting host communities as it transitions to operations. â&#x20AC;&#x153;Our perspective though is changing from managing immediate impacts and benefits to helping prepare and plan for long term opportunities,â&#x20AC;? Mr Ingram said. The first round of funding under the QGC Communities Fund will run from 1 February to 31 March 2015. Interested not-for-profit organisations can download the application form and guidelines at www.qgc.com.au/community.
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1. QGC Social Performance Coordinator, Kristelle Townsend, Cr Carolyn Tillman and Leisa Finch from the Myall Youth and Community Network at the launch of the QGC Social Investment Program 2. Cr Carolyn Tillman, QGC Vice President External Affairs and Sustainability, Joanne Pafumi, and Western Downs Regional Council Deputy Mayor George Moore at the launch of the QGC Social Investment Program 3. Doug McNally, President Chinchilla Melon Festival and QGC Social Investment Manager, Jane Roberts 4. QGC Community Investment Officer, Janelle Kennerley 5. QGC Social Performance Coordinator, Kristelle Townsend, Doreen Goldsmid, Chinchilla Family Support, Leanne Evans, and Jackie Beck, Chinchilla State High School
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Surat Basin NEWS Thursday 27 November 2014
PAGE 31
PLACES & FACES
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CASHING IN: Thrilled with the $10,000 donation are (from left) Thiess community and stakeholder relations manager Kyle Roggenkamp, Drought Angels, Natasha Johnston and Jenny Gailey, and Noel Carlish from QGC.
THIESS, THANK YOU! DROUGHT ANGELS GRATEFUL OF $10,000 DONATION FOR STRUGGLING FARMERS
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HINCHILLA’S own Drought Angels have been “blessed” with a $10,000 donation to help struggling farmers through a dry, hot Christmas. Mining and services contractor Thiess donated the funds to the Chinchilla drought fundraising organisation as part of a QGC safety award initiative on the Queensland Curtis LNG (QCLNG) Upstream Project. Drought Angels co-founder Natasha Johnston said the $10,000 donation would help prepare some “Christmas relief” for south-west Queensland families affected by the drought. “We are helping to raise money and supply non-perishable items for Aussie farmers to show them people care and are thinking of them,” Ms Johnston said. “With almost 80 per cent of Queensland
officially in drought many farmers are facing the prospect of losing their livelihood and we are doing everything we possibly can to assist those in need. “The donation couldn’t have come at a better time as the Christmas period is fast approaching and this will allow us to buy plenty of food and stock feed to help those families still feeling the effects of the drought.” Thiess community and stakeholder relations manager Kyle Roggenkamp said the donation opportunity came about through Thiess being awarded Contractor of the Quarter from QGC – April to June 2014. “Thiess have consistently demonstrated their safety performance through the quarter and have introduced a number of safety initiatives which continue to pursue excellence in HSSE performance,” Mr Roggenkamp said.
HOW TO HELP ■ If you would like to provide support to Drought Angels contact can be made through the Chinchilla Family Support Centre on 4662 8528.
SURAT BASIN NEWS Published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street Chinchilla Q4413 Printed by APN Print Toowoomba 50 Industrial Avenue Toowoomba Q4350 2013 General Manager - David Richardson, 12 Mayne Street Chinchilla Q4413, PO Box 138 Chinchilla Q4413, Phone 07 4662 7368
This year, Thiess had been recognised as QGC Safety Contractor for the months of January, April, May, June and August. “This achievement has also allowed us to take out QGC Safety Contractor for the first two quarters of 2014 which is an outstanding achievement that we are very proud of. “I’m pleased our efforts have also been able to assist the Drought Angels and the work they undertake helping drought effected families and communities.”
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Surat Basin NEWS Thursday 27 November 2014
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