Environmentalists are concerned gas extraction near the Carmichael site will compound the impacts of coalmining on the Galilee Basin

This article is more than 1 year old

This article is more than 1 year old

A Queensland gas company plans to begin fracking at two exploratory wells close to the Adani Carmichael mine site later this year, and hopes production can begin “early” to service nearby mining projects.

Gas explorers appear to have increased the pace of their planning and activities in the Galilee Basin during the past year as the Carmichael mine has passed key milestones – in contrast to companies behind other thermal coal proposals.

Federal government studies have warned that fracking could “modify aquifer properties” in the Galilee, and environmentalists say they are concerned that gas extraction will compound the impacts of coalmining on water resources.

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In a recent presentation to a mining conference in Noosa, gas explorer Comet Ridge said it planned to conduct “fracture stimulation” of two sandstone gas wells, one about 35km from the Adani site, before the end of the year.

Comet Ridge also plans to extract coal seam gas from the Galilee. In May the company signed a memorandum of understanding with gas infrastructure firm APA to work towards a pipeline, linking the Galilee Basin with Moranbah and ultimately to east coast markets.

In the meantime the company has flagged the “potential for early commercialisation with nearby mining and industrial gas demand”.

The only nearby project likely to be completed by 2021, which the company has previously said was a “best case scenario” for production, is Adani’s Carmichael project. Comet Ridge’s joint venture partner, Vintage Energy, has previously promoted its proximity and the fact Adani “will require gas to power its operations”.

In a statement Adani said it had plans in place to provide energy for Carmichael operations and that these “do not contemplate the use of natural gas”.

“We will assess any future proposals to supply safe, affordable and reliable energy to the project on their merits,” the statement said.

Comet Ridge did not respond to an offer to provide comment.

The Carmichael project has become totemic – for both climate activists and supporters of coal – partly because it represents a new development in a previously untapped thermal coal basin. Much of the commentary and analysis about Carmichael has focused on the potential of the project to “open up” the Galilee Basin to other mining companies.

Instead, natural gas companies have been the most aggressive movers. Environmentalists say those operations could create unforeseen water impacts, and could alter the assumptions used by miners to model impacts on groundwater.

Last year, a federal government bioregional assessment warned that cumulative impacts on water resources in the Galilee would likely be more significant than individual miners had factored in to their own modelling.

The same assessment raised concern about coal seam gas and fracking operations. It said groundwater levels could be altered by coal seam gas extraction.

“Any future groundwater drawdown in the upper Permian coal measures due to CSG production has the potential to be additional (cumulative) to drawdown attributed to the coal mine projects in the modelled,” the report said.

It said fracking operations could have effects on “groundwater composition and quality” and could result in “modified aquifer properties”.

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The Lock the Gate Queensland spokesperson Ellie Smith said water drawdown had been observed by farmers in other parts of the state where fracking has proliferated.

“In a time of extreme, unprecedented drought, we should be conserving water, not sacrificing it to fracking companies who exploit it for temporary gain,” Smith said.

“The exploration well’s proximity to … precious water resources and to the planned Adani Carmichael coal mine and other slated Galilee mega coal mines is deeply concerning given the likely cumulative impacts on water resources.

“Now, with fracking thrown into the mix, that impact is likely to be even more disastrous for farmers, water resources, and local communities.”