A GAS hub for Mount Isa would help address the North West's energy needs, consultant Ross Thompson said yesterday.
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Mr Thompson, who has 30 years' experience in the North West energy market, said there was demand of about 30 petajoules of gas - worth several hundred million dollars - in the area each year.
``It's worth exploring because the other side of it is the sources of gas from our conventional suppliers, those deposits are now depleting or being diverted into other markets and that has been replaced by coal seam gas but the demand for coal seam gas to go into the export market is three to four times the domestic market,'' he said.
``When you get a shortage of supply and increased demand, prices go up so we need to look at getting alternative sources.''
Mr Thompson said a feasibility study into the project would probably take 12 to 18 months.
``I think we're a long way from this becoming a reality and a lot of work needs to be done,'' he said.
``It would probably have a three to five year lead time.
``[But] the potential is there.''
Mount Isa Mayor Tony McGrady welcomed the proposed project.
He said he believed there needed to be a mix of gas, coal and nuclear energy available to meet the North West's needs.
``Here in the North West and in particular with the work that's being done now obviously energy is one of the most important areas which needs to be discussed and worked on,'' he said.
Cr McGrady said a mix of energy sources would ensure prices were competitive, which would in turn help to attract further investment in the North West.
State member for Mount Isa Rob Katter raised the idea of a gas hub for Mount Isa in Parliament on Wednesday.
Minister for Natural Resources and Mines Andrew Cripps confirmed the state government's commitment to developing the mining and gas sector in Queensland.
``In particular, I say to the Member for Mount Isa that it includes programs in the North West Minerals Province,'' he said.
``It includes not only projects in terms of mineralogy but also prospectivity for petroleum and gas products as well.
``He should take heart from that.
``After 20 years of Labor neglecting regional and rural Queensland and taking the resources sector for granted, Queensland finally has a government that considers it a pillar of the economy.
``It is investing in the future of jobs, particularly in regional and rural communities in Queensland.''
Mr Cripps said the government was committed to the development of the gas sector.
``The Member for Mount Isa should be assured that in this government we have a government that is planning for the future of gas supplied not only to this state and this country but also our overseas trading partners,'' he said.