SBN May 1 2014 by Chinchilla Newspapers Pty Ltd

SURAT BASIN

NEWS

1 May 2014

$1.30 inc GST

FIRST GAS ON THE HORIZON

INSIDE

THREE major projects are racing toward the same historic goal — to export gas from the Surat Basin to the world. This month, we bring you the inside knowledge on the APLNG, QCLNG and Santos GLNG projects to find out when history will be made.

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SURAT BASIN NEWS

Workers join our services EDITOR'S

NOTE ANZAC Day is an occasion that means a lot to our communities. It is a day when people from all walks of life stand side by side to remember the fallen, and to honour those who still serve in our Armed Forces today. And while rigorous resource industry rosters prevent many workers from celebrating other occasions throughout the year, Anzac Day is different. Busloads of workers were transported to the Miles Dawn Service again this year. Their presence bolstered an already large crowd of locals, bringing the total number to more than 300 people. I spoke to one Digger from Miles who was overwhelmed at the large crowd, and who made particular mention of the attendance by resource industry workers. “It makes me proud,” he said. Leightons Contractors continued their generous tradition of putting on a hot breakfast after the Dawn ceremony for anyone who wished to share a meal - and lots did. Anzac Day was a great example of how the huge influx of resource industry workers to this region can benefit our communities. Cheque handovers will always be greatly appreciated, but it is the presence of workers at events like Anzac Day that are the real presents for our towns. Lest we Forget.

U CH

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

TEAM GENERAL MANAGER David Richardson Chinchilla 0746627368 manager@suratbasin.com.au

ADVERTISING MANAGER Laurel Ison advertise@suratbasin.com.au 07 4662 7368 Karin-ane King karin-ane.king@suratbasin.com.au Roma 07 4662 2411 Nicole Boyd-Taylor Dalby 07 4672 5500 nicole.boyd@suratbasin.com.au

EDITOR

Jim Campbell

JOURNALISTS

WEBSITE View our previous editions on www.issuu.com/suratbasinnews

Lyndon Keane Owen Jacques Melissa Mobbs Lauren Gallagher

UPDATES

PAGE DESIGN Beth Walker

Regular updates on www.suratbasin.com.au

SURAT BASIN NEWS 12 Mayne Street Chinchilla, QLD, 4413

THE

PO Box 138 Chinchilla QLD 4413

INDEX

DOWN TO BUSINESS

PUBLISHED

APLNG project update .......................16-17 The Surat Basin News is published by Behind the Desk ..................................18-19 Chinchilla Newspapers Pty Ltd, 12 Santos GLNG update..........................20-21 Mayne Street Chinchilla Q4413 Thiess arrives in Basin ......................22-23 IN THE NEWS The Surat Basin News is printed by APN Print 50 Industrial Avenue Mayor wants more royalties ....................4 Toowoomba Rail on the agenda .....................................5 BUILDING THE BASIN FIFO campaign ...........................................6 The Eastwood opens...........................24-25 Linc Energy to fight charges ...................7 Housing Trust debate..............................26 State versus State in gas ..........................8 Expo attracts sponsor .............................27 Bubbles puzzle researchers.....................9 Swagsman Inn feature........................28-31 QCLNG project update.......................10-11

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THE

Surat Basin NEWS Thursday 1 May 2014

THIS WEEK

INDUSTRY REMEMBERS

Workers join Anzac Day services in Surat Basin

esource workers stood side by side with locals right across the Surat Basin to commemorate Anzac Day. At Miles, busloads of workers travelled to town from accommodation camps for the Dawn Service. Their presence added a national tone to the touching service, with workers from right across Australia joining Miles locals at the ceremony. Leightons Contractors — a major player in the construction industry in the Basin — continued their generous tradition of supplying a breakfast for Dawn Service attendees at Miles Golf Club following the service. Then, at the 10.45am commemorative service, representatives from APLNG, QGC Condamine

Power Station and Laing O’Rourke laid wreaths at the Miles Cenotaph. Resource industry workers also laid wreaths at the Chinchilla Anzac Day Service. In Brisbane, RSL Queensland president Terry Meehan estimated about 20,000 people heard Queensland Governor Penelope Wensley ask us to consider the war still waged by our returned soldiers who live with Post Traumatic Stress Disorder. Mr Meehan said younger Australians not only appreciated the sacrifices of their ancestors, social media was helping them better understand the sacrifices made by their peers. “Because of modern technology and a thirst for knowledge, (young people) know what these people have done.

Because of modern technology and a thirst for knowledge, (young people) know what these people have done. RSL Queensland president Terry Meehan “They know about the peacekeeping missions, they know we have 400-odd people still in Afghanistan,” he said. He said there was a growing respect for those who have served for Australia since Vietnam, who attended Friday’s dawn service, many for the first time.

ANZAC SERVICE: Laying a wreath at the Miles Anzac Day service on behalf of the APLNG project are Steve Clarke and Peter Barkley. Photos Jim Campbell

ECM electricians (from left) Luke O'Brien and Sean Winter from Melbourne, Joshua Honess from Brisbane and Jay Allen from South Australia, are working at Bellevue but made the trip to the Miles Dawn Service before work.

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IN THE NEWS

MAYOR CALLS FOR A FAIR ROYALTY SHARE

egional towns are crying out for a fair go as concern is raised about lack of government consideration for resource communities. With 80% of mining resources being delivered from regions like the Western Downs, Mayor Ray Brown (pictured) said he could not understand why only a miniscule amount of royalties were put back into the towns. “All I’m after is a fair share and for benefits to go back into our regional areas, where the impacts are felt,” Cr Brown said. “Of the royalties, 80% goes to Canberra, 16% to Brisbane and only 4% comes back to our local area – the area that delivers the

PAGE 4

majority of the services. Does that sound like a fair ratio?” He said Royalties for the Regions was great for getting infrastructure and services into the region, however, the Federal Government needed to step up and take responsibility for the local communities. “It’s only reasonable to ask for a partnership where everyone is involved, this includes the Federal Government,” he said. “If all tiers of government became involved, we could see a fair distribution of royalties and towns would benefit.” Queensland Resources Council chief executive Michael Roche said Royalties for the Regions monies budgeted for 2016-17 should be brought forward.

“We want the government to focus these monies on host communities like the Surat Basin mining towns,” Mr Roche said. “It is our view that the focus of Royalties for the Regions funding is vitally important, given that some of the pressures on resources regions are not considered in traditional government funding mechanisms. “The program is channelling a proportion of state royalties back into resource regions for community infrastructure development. “Obviously, we continue to support the program, and our members are telling us that funding needs to be increased.”

Surat Basin NEWS Thursday 1 May 2014

IN THE NEWS

RAIL MOVE GATHERS SPEED Hobbs wants more trucks off Surat Basin roads

RUMBLING ROADS: As mining-driven truck traffic continues to increase, a Dalby bypass has again been mooted. Photo: Lyndon Keane

he push to shift more of Queensland’s freight from the blacktop to the train tracks has been welcomed by “a lot of enthusiasm”, according to Member for Warrego Howard Hobbs. Mr Hobbs is the chair of the Transport, Housing and Local Government Committee’s inquiry into optimising the capacity and performance of the state’s rail system for freight, and he said the ultimate goal was to lessen the number of ON THE RIGHT TRACK: Member for Warrego Howard Hobbs says south-west Queensland's agricultural sector heavy vehicles carting both agricultural and would benefit from a boost in rail usage. Photo Contributed general freight. “You could sum it up by saying we want to get the trucks off the road,” he said. “While that will never happen entirely, the growth we are seeing over the next 20 or 30 year means there will still be an enormous amount of wok for trucks, but the dominant player in the future will have to be rail. “There’s a lot of An artist's impression of a Central Queensland coal train after being rebranded from QR National to Aurizon. Picture: enthusiasm throughout Contributed the whole state for rail to

be a major player in freight movement.” During the public consultation period, the committee received 24 submissions, including from local governments in the Surat Basin. Freight giant Aurizon, which has received criticism for what has been perceived as having a primary interest in coal haulage, also presented a submission. An Aurizon spokesperson told Surat Basin News the company was “committed to the ongoing transport of mineral, general freight and agricultural products across Australia”. For the 2012-13 financial year, Aurizon moved 295,000 tonnes of road freight within Queensland. Mr Hobbs said that while he did not want to “take the livelihoods away from truckies”, he believed boosting rail freight would provide both economic and safety benefits for the Surat Basin. “There are proponents that are interested in building a new standard gauge line from, say, Miles, pick up the coal from Miles, Chinchilla and Dalby, a new line down the range to Acacia Ridge, and then a tunnel from Acacia Ridge to the Port of Brisbane,” he explained. “If that eventuates, which I believe it will, that will free up a significant lot of opportunities to use rail. “It will free up pathways.” The committee is scheduled to report back to Parliament on June 10.

PLAN TO PAY OUT INDUSTRY MORE than $2.5 billion could be spent paying Australia’s heavy industries to reduce their carbon emissions to meet the Abbott government’s target of a 5% reduction by 2020. Environment Minister Greg Hunt last week released the government’s white paper on the emission reduction fund, the centrepiece of the Coalition’s direct action plan. The fund will put aside $1.5 billion over the next three years, with an extra $1 billion to be spent on buying carbon emissions from in future years. Funds will be spent on securing contracts from businesses with proposals to reduce their emissions in quarterly government auctions starting later this year, with some larger project able to secure funds outside of the auctions. Among those likely to be eligible are state governments, landfill operators, coal and coal seam gas operators, electricity suppliers, and land-based abatement activities. Mr Hunt said the legislation would be released as an exposure draft in coming weeks, while he wanted feedback on the discussion paper released last week.

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IN THE NEWS

IN BRIEF Work starts CONSTRUCTION began this week on the new development of Quest Serviced Apartments in Toowoomba. The occasion was marked by a sod turning ceremony at 133 Margaret Street. Toowoomba Regional Council Mayor Paul Antonio (pictured), Deputy Mayor Mike Williams, General Manager of Locations for Quest Serviced Apartments, Andrew Weisz and Executive Chairman of FK Gardner & Sons Group (FKG), Gary Gardner, attended the event.

COMMUNITIES FIRE UP OVER 100% FIFO

3500 central Queensland residents to miss jobs if BHP Billiton develops mine BY Owen Jacques

ommunities could again be banned from applying for up to 3500 jobs as hulking coal miner BHP Billiton pushes to use thousands of workers on forced fly-in, fly-out arrangements to build then operate its proposed central Queensland mine. If approved by the Queensland Government, the Red Hill mine would require 2000 workers during construction and a further 1500 once operations started. It would be the third BHP Billiton Mitsubishi Alliance mine to bypass local labour, with BMA already staffing its Daunia and Caval Ridge coal mines with 1000

should it go ahead. The company is focusing on expanding two adjacent mines, which do employ local workers. Both the Queensland Government and BMA have said the forced FIFO allow mining wealth to be spread beyond the coal-rich areas of central Queensland. The LNP State Government is under pressure to not allow any new forced FIFO deals. Deputy Premier Jeff Seeney said the decision to allow major projects to use 100% fly-in, fly-out workers was one for the co-ordinator-general, Barry Broe. Deputy Opposition Leader Tim Mulherin said no Queenslander should FIFO FODDER: The plan by BHP Billiton to use a 100% fly-in, fly-out workforce to construct and operate a central be denied a job based on Queensland mine has created a stir across the state. where they live. workers sourced entirely from Brisbane and Cairns. Toowoomba Regional Council Councillor Chris Tait told APN such deals could set a precedent. He said companies should make a commitment to the regions, rather than risk hurting small towns. "It would be the outlying

communities where it would have such an impact," he said. "Probably in the Western Downs, like Miles or Chinchilla." Almost 1000 Queenslanders have now signed a formal petition against the practice and APN, which publishes

Surat Basin News, has kicked off a print media campaign to support the use of local labour in the resources sector. A BMA spokeswoman said while there were "currently no plans" for BMA to develop Red Hill, it intended to use 100% fly-in, fly-out workers

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Surat Basin NEWS Thursday 1 May 2014

IN THE NEWS

HOT ISSUE: A gas flare fires last week at Linc Energy's underground coal gasification pilot site, near Chinchilla. The company says it will fight charges laid by the State Government.

TEMPERS FLARE AS CHINCHILLA UCG OPERATION CHARGED

LINC TO FIGHT CHARGES N

eighbours of Linc Energy’s research and development site near Chinchilla say they are “unsettled” and “frustrated” by claims the company has done environmental damage. The Queensland Department of Environment and Heritage Protection charged the underground coal gasification company this month with four counts of causing “serious environmental harm” at its pilot plant on Kummerows Rd. Linc Energy chief executive officer Peter Bond denied the claims and said his company would fight the charges. But neighbour Jonathan Holt, whose family has farmed in the area for decades, said he was worried about potential

damage to his plot. “It’s unsettling because you just don’t know,” he said. Both the State Government and Linc Energy have said there is no danger to nearby properties, but it is cold comfort to Mr Holt. “It’s easy for them to say that but they’re not living here,” he said. “They’re down in Brisbane.” Minister for Environment and Heritage Protection Andrew Powell said the “harm allegedly caused to the environment is considered serious”. Mr Bond said the allegations related to “older style” UCG technology and hinged on the government’s “lack of knowledge” of UCG. “The company does not believe it has caused environmental harm as

alleged, nor have we unlawfully affected any ecosystems,” he said. “As a show of good faith to our community and neighbours, Linc Energy will publish the past few years of water sampling data on our website, which clearly shows there is no water quality issues at all for them to be concerned about and puts these allegations into context of essentially being a difference of opinion.” The company completed its Chinchilla pilot program at Chinchilla in late 2013 and is now in the process of decommissioning the site. Mr Bond said the legal process it could take at least two years to reach a conclusion. To view the Linc Energy water sampling data, visit UCG GRIEF: Linc Energy is facing State Government charges over its Surat Basin-based pilot program. www.lincenergy.com.

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IN THE NEWS

Subsidy would cripple oil THE nation’s largest oil recycler, which employs 160 people in Gladstone and Wagga, is facing collapse if the Abbott government proceeds with recommendations to slash a subsidy the oil recycling industry depends on. Southern Oil, which owns an oil re-refinery in Wagga, is due to start operating a new $65 million refinery in Gladstone in coming weeks, with 70 employees already on its books. The business, which managing director Tim Rose said handles 80% of all oil recycling in Australia, relies on a subsidy paid to oil recyclers of 50 cents a litre, a subsidy facing potential cuts in the Abbott government’s first budget. But Mr Rose said if the subsidy was halved, it would make the entire oil recycling scheme in Australia unviable.

QLD LEADS NSW IN CSG INDUSTRY

STATE VERSUS STATE BY OWEN JACQUES

ueensland is being flooded with millions in gas-industry dollars, while protesters in northern New South Wales build blockades to prevent drilling. In the final three months of 2013 alone, there were 349 wells developed in Queensland, 200 deals done between landowners and gas companies, and almost 5000 jobs created. Throughout NSW, there were just three new wells built, six land deals were lost and 48 new workers joined the industry. There are now 40,538 Queensland jobs in the gas industry, compared with 258 in NSW. The figures illustrate stark differences between how each state is grappling with the hunger of the CSG industry. NSW has state laws blacklisting huge swaths of the landscape from any gas exploration or development. In Queensland, the state created mediators – including the GasFields Commission – in an attempt to broker compromises between energy giants and property owners. The data suggests separate victories for

There are now 40,538 Queensland jobs in the gas industry, compared with 258 in NSW. each state, with CSG tarred with a toxic reputation in New South Wales while in Queensland, the ferocity of opponents is on the wane. The Australian Petroleum Production and Exploration Association – the national mouthpiece of the gas industry – wants NSW to be “looking and learning from the Queensland experience”. APPEA chief Paul Fennelly said the equivalent of 2.8 land deals were done each day for the past year, with no formal disputes. “Queensland has set a benchmark other eastern Australian states must match if they are to address supply shortfalls by safely exploring and producing local natural gas resources”. The message is not likely to persuade those fighting test drilling plans by gas giant Metgasco in the

northern NSW town of Bentley, outside of Lismore For three weeks, hundreds have formed a standing army against the company to stop it from delivering the drill

components. Lock the Gate president Drew Hutton said he felt the lack of gas development was saving NSW from damaging farmland or underground water supplies that

Queensland will deal with “over the coming decades”. He said despite the growth of the gas industry in Queensland, the fight against it would continue.

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Surat Basin NEWS Thursday 1 May 2014

IN THE NEWS

SEEPS PUZZLE RESEARCHERS M ■ The capping and trapping of natural gas. Lock the Gate Alliance president Drew Hutton said it was the depressurisation possibility from the “narrowly focused” report that should ring alarm bells. “That’s important as it indicates that there are pathways from the coal seam to the surface,” he said. “The key thing is that the activities of the CSG industry are depressurising the coal seam aquifer and that makes way for methane and other dangerous gases to be released into the atmosphere.” Origin Group manager of exploration, appraisal and development Ross Evans said a detailed analysis found no evidence of contribution to the seeps from Origin’s CSG wells in the area. Mr Evans said he was pleased with Origin’s progress in investigating the seeps and their cause.

BUBBLE MYSTERY: Scientific equipment is installed where gas seeps are occuring in the Condamine River. INSET: Origin staff inspect a monitoring device near the river. Photos Contributed

“We’ve been very busy over that period [since 2012] doing an enormous amount of monitoring and studying,” he said. “In terms of progress, we’ve certainly narrowed the field down.”

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pressures. Origin Chief Executive Officer LNG, David Baldwin said detailed investigation into the Condamine River seeps had greatly increased understanding of

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onitoring bores are being built around the bubbling Condamine River gas seeps that are still mystifying experts after two years. Australia Pacific LNG released its Condamine River Gas Seep Investigation: Technical Report. The report did not pinpoint a definite cause for the seeps but found there was no evidence of resulting environmental or safety risks. The report was independently reviewed and verified by the Queensland Government’s chief scientist, Dr Geoff Garrett, who recommended ongoing monitoring of the seeps and further investigation into their cause. Potential causes for the seeps outlined in the technical report included: ■ Depressurisation; ■ Repressurisation; ■ Fractures, faults and springs; and

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IN THE NEWS

MOVING FORWARD: Progress is steaming ahead at the huge QCLNG Woleebee Creek site near Wandoan, which is being expanded and will soon house about 1700 workers.

FIRST GAS IN 2014 Huge $20b investment set to pay dividends for QGC

QGC worker Wexley King keeps a close eye on what’s going on.

PAGE 10

GC’s Queensland Curtis LNG Project remains on track to be the world’s first project to turn natural gas from coal seams into liquefied natural gas in the final quarter of this year. The company is investing more than $20 billion in the project to expand onshore natural gas production, lay Australia’s longest large-diameter pipeline and build the first LNG plant in eastern Australia to provide cleaner energy for export markets.

At the end of 2013, QCLNG reached a key milestone with first gas transported from the Surat Basin to Curtis Island, where the liquefaction terminal is located. This milestone marked the successful completion of the 540-kilometre pipeline network. Gas was introduced throughout the pipeline system late last year and is now pressured up to full operating conditions. Construction of the first of the two production facilities on the island – known as trains – is now

Surat Basin NEWS Thursday 1 May 2014

in its final stages, allowing commissioning activities to begin. The last of 80 construction modules for the two LNG trains and liquefaction plant’s common facilities have arrived from Thailand and been set on their foundations. In the Surat Basin, QGC continues to drill an average of more than 50 wells a month. By the end of 2013, more than 1900 wells had been drilled, ahead of the year-end target of 1750. Construction is gathering momentum in the most

southerly of the three development areas, near Dalby, where six field compression stations and one central processing plant are starting to come online. BG Australia chair Catherine Tanna said earlier this year that, given the liquefied natural gas sector was just over 20 years old in Australia, it was remarkable that the country was on target to be the world’s biggest LNG exporter by 2020. “A large part of this growth is coming from Queensland where the

IN THE NEWS

FIRST CAB OFF THE RANK

QCLNG TO WIN EXPORT RACE

From page 10: world’s first LNG projects to use unconventional gas as feedstock are under construction,” she said. “Queensland, which has come from a standing start only five years ago, is expected to account for a third of Australian production by 2020. “Put another way, Queensland’s 25.3 million tonnes of production a year will be equivalent to 5% of global supply and will eclipse Russia for sixth place internationally.” The Queensland Curtis LNG Project is scheduled to export the first cargo of Queensland LNG. Two other Queensland projects – Australia Pacific LNG and Gladstone LNG – are expected to begin

production the following year. “We are creating an industry that will help to underpin the Queensland and Australian economies and change for the better thousands of lives,” Ms Tanna said. “In the next two decades, the natural gas industry will lift Queensland’s real gross domestic product by an average of $25 billion a year, provide 20,000 long-term jobs and generate up to $275 billion in royalties and taxes.” QGC is investing more than $150 million on health, social services, indigenous programs, education and housing well before any earnings from the project. In the latest six-monthly report to Queensland’s co-ordinator-general on

Australian industry participation, QGC said that gas company and its major contractors employed 14,500 people. QGC said investment in construction, exploration and operations since January 2010 had passed $19.4 billion. A snapshot of current contracts showed that QGC was investing about $915 million in the Western Downs region. About $16.3 billion – or 84% of the total $19.4 billion – had been invested with Australian firms since 1 January 2010. Queensland firms had received 68%, or $13.2 billion, of the total. There are also significant future opportunities, for services and innovation, over the 20- to 25-year

We are creating an industry that will help to underpin the Queensland and Australian economies and change for the better thousands of lives.

SHIP SHAPE: Workers ready the giant tanks on Curtis Island.

BG Australia chair Catherine Tanna initial life of Queensland’s gas projects. During this period, investment in total project operations and expansion is expected to be about $3 billion or

QGC staff have had to overcome huge challenges in the QCLNG project.

more every year. “Aspiring businesses will continue to have many similar opportunities to get involved as the industry seeks a deeper service industry and

streamlines its operations,” Ms Tanna said. “We expect to have no trouble attracting the right people, equipment and capital.”

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PAGE 11

OPINIONS

KNOWLEDGE ADDS VALUE

IN THE FIELD: GasFields Commissioner Ian Hayllor with a trial well.

THE independent Office of Groundwater Impact Assessment recently released their annual review of the implementation of Surat Underground Water Impact Report. It shows changes to industry development results in little change to the likely long-term groundwater impacts from coal seam gas development that was originally forecast back in 2012. The annual review draws on the latest groundwater data and development plans of the CSG companies operating within the Surat Basin cumulative management area. The monitoring data is part of an ongoing monitoring effort which will continue into the future. This annual review also highlights the major research effort being led by OGIA in collaboration with the CSIRO, Geoscience Australia, several universities and CSG proponents

proponents and the Condamine Alluvium. In particular, I have been COMMENT involved with an aquifer IAN HAYLLOR pump test on my farm GasFields Commission near Dalby last year, which involved drilling several monitoring wells themselves, to further at various depths to test improve our and collect data on understanding pressure changes during groundwater flows and pumping. aquifer connectivity in What was especially the Surat Basin. The fascinating for me and results of the research other landholders was to will be incorporated into new modelling which will walk the drill core that came out of the drill hole be used to update the at a field day we hosted UWIR in December 2015. last July. Importantly, there has This was the first time also been significant many farmers in my area, involvement and input into the research program who had been tapping underground water by landholders, rural supplies from this region groups like the Central for many years, had seen Downs Irrigators and such detailed information Cotton Australia, in about the Condamine addition to the local Alluvium and the community. geological formations Personally, I have been below it. participating in the The information gained Condamine Connectivity from this and other OGIA Project, which aims to led research projects are improve understanding not only helping the about connectivity between the Walloon Coal onshore gas industry but are also very valuable to Measures, which are those in the agricultural targeted by CSG

sector who rely on these precious groundwater supplies for their business and livelihoods. OGIA’s research is also looking into connectivity between formations in other parts of the Surat Basin, the potential for geological faults to affect the flow of groundwater and to better understand the function and flow of natural springs in the Surat Basin. I hope more landholders in the Surat Basin will take a closer look at the important groundwater research underway and encourage them to get involved, as it is knowledge that can help improve and add value to our own agricultural businesses.

INFORMATION For more information on OGIA’s research program in the Surat Basin visit their website www.dnrm.qld. gov.au/ogia

ASSETS NEEDED FOR STATE COMMENT SHANE CHARLES CEO Toowoomba and Surat Basin Enterprise

LAST month, I wrote about how are we, as a community, are going to take advantage of infrastructure that is coming to Toowoomba. You will recall that big

items such as the Second Range Crossing, Inland Rail and of course Brisbane West Wellcamp Airport will all change the landscape and how we do business in the region. The past month has also seen TSBE participate in a roundtable meeting with Treasurer Tim Nicholls to discuss how the Government can go about restoring our

financial credibility as a state. High on the agenda of course were asset sales, as no one seems too keen on a reduction of services or higher taxes. The Government seems keen to talk about utilising some of the proceeds of assets sales , but sales are not of course a given until the Government finishes their round of

consultations. You will have heard also that the Federal Government will top up investment in infrastructure that leads to economic growth by 15 percent. My question to the Premier was about investment in “enabling” assets. By enabling assets, I mean assets that will create opportunity,

kickstart industry and create jobs for our children. I was pleased to hear that the Treasurer was most keen on this type of investment. We now need to focus on the things as a region that will bring economic development to the region. This includes intensive horticulture, abattoirs, a

water grid for the Surat Basin to drought-proof regional communities, rail and water for the coal industry in the Surat Basin, training facilities, a rail line to the Cooper Basin and the list goes on. We need to continue efforts in earnest to diversify our economy. If you have some ideas, I’d love to hear them.

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OPINIONS

SUPPORTING ANZACS .

help you clearly understand the choices Howard we face to reduce debt. Hobbs MP This is not a poll, Member for Warrego however anyone is welcome to complete elcome to the People's Budget. I have been delighted to the May edition of have recently attended the Miles State High Surat Basin News and nearly School and the Chinchilla State High a quarter of the year School’s Anzac Day has passed. Services. Another significant milestone is that of two It was great to see the students reflecting and years of LNP Government, which has honouring the digger qualities of mateship, been about teamwork, resilience, revitalisation of courage, integrity, duty frontline services, and sacrifice at the shorter hospital and school services. dental waiting times, Next year is the safer communities and new facilities for young Centenary of Anzac, children, particularly in which marks 100 years since Australia’s the area of early involvement in the First childhood. World War and this will Considering the be and opportunity for circumstances and the levels of debt which the all Australians to reflect on the sacrifices which LNP Government has had to stabilise, this has were made by so many. I have also been not been easy and has delighted to attend the required frugal dawn service in Miles management of tax and the mid-morning payers’ money. service in Chinchilla, Now debt stabilisation followed by the RSL is well underway and luncheon. I would like we are embarking on to thank all the the conversation with organisers and local the community about the choices which have RSL branch members who have organised to be made to further Anzac Day Services and address debt functions throughout management. It can be the electorate. found at It is heartening to see http://www.strong the crowds growing choices.qld.gov.au/ every year, and the postcode/planner. attendance numbers at I encourage people to some of the smaller access the People’s communities is quite Budget, which is an overwhelming. Thank online tool to provide you for your continued feedback as part of a support of Anzac Day. broad consultation to COMMENT

SCIENCE IGNORED

SAVING OUR REEF .

COMMENT MICHAEL ROCHE CEO Queensland Resources Council

ueensland Resources Council television commercials urging Australians to become informed about the environmental challenges confronting the Great Barrier Reef have begun screening in the wake of ‘scaremongering’ by environmental activists. The activists’ stated objective is to shut down Queensland’s export coal and gas industries with obvious implications for the country, the state and the Western Downs as an

emerging global energy producer. The Great Barrier Reef is convenient and emotional leverage for the campaign, following a 2012 report that found the reef had lost 47 percent of its coral over the preceding 27 years. The authors of that report – the Australian Institute of Marine Science and Wollongong University – were unequivocal in attributing coral loss to storms (48%), crown-of-thorns starfish (pictured above) outbreaks (42%) and coral bleaching (10%). However, activists have been diligent in ignoring scientific evidence and peddling the line to Australian and international audiences

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Surat Basin NEWS Thursday 1 May 2014

that port developments, dredging and shipping are endangering the reef. The fact is that neither an increase in shipping traffic nor port dredging has been scientifically recorded as contributing to coral cover loss or a historical decline in the environmental health of the Great Barrier Reef. Activists know that if they can demonise port maintenance and development, they can throw up all manner of barriers to trade growth along a 2300-kilometre coastline from Bundaberg to Cape York. The scientific work into the ongoing environmental management of the Great Barrier Reef is no secret and that is why we are

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urging Australians to learn more from Reef Fact websites hosted by the QRC, state and federal governments. Coinciding with the QRC advertising campaign has been welcome news from Federal Environment Minister Greg Hunt that more than 250,000 crown-of-thorns starfish have been eradicated over the past two years, with the hit rate enhanced by a ‘one-shot’ injection process. The message from the Australian Institute of Marine Science is that the reef can recover its lost coral with a concerted effort to eliminate crown-of-thorns starfish. The task is challenging but not beyond our resources.

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PAGE 13

OPINIONS

WESTERN DOWNS MAYOR WORRIED BY DELAY IN NOTIFICATION

MORE UCG REGULATION NEEDED

COMMENT Cr RAY BROWN Mayor, Western Downs Regional Council

ver the past few weeks, the spotlight has been focused on Linc Energy’s trial

underground coal gasification plant near Chinchilla. Western Downs Regional Council is waiting for

HOUSING RELIEF: At the launch of the Western Downs Housing Trust's affordable housing project in Wandoan are Western Downs Regional Council chief executive officer Phil Berting, WDHT director Cr Ray Jamieson, Horizon Housing chief executive officer Jason Cubit, WDHT chair Cr Ray Brown, WDHT reference group chair Leah Charteris, Anna Campbell, WDHT reference group representative Natasha Wright and WDHT reference group representative Helen Darcy.

more details from the State Government regarding the alleged breach of environmental activity by the resource company. My concerns lie in the nine-month period it took authorities to inform landholders of the alleged environmental damage. This delay is not a desirable outcome for the protection of our local communities and environment. Our council strongly advocates on behalf of our region to ensure that coal gasification operations do not adversely impact on the livelihood of our local communities. The delayed release of this information places question marks on the regulations and compliance measures placed on the UCG industry.

The issue I have with the UCG industry is that it is regulated by the Minerals Act, which needs to be changed in order for stricter guidelines to be put in place to ensure regulations are complied with. I am in favour of putting further regulations and disclosure obligations in place similar to those under the Petroleum Act, which governs the coal seam gas industry. It is time these acts were reviewed to ensure that both the UCG and CSG industries are operating at a more transparent level to ensure local landholders are protected and well-informed. The Western Downs Housing Trust projects have also been high on the council’s agenda, with both the Chinchilla and Wandoan property

developments underway, and Miles progressing into stage one of the proposed property plan. Once complete, the available properties in Chinchilla, Wandoan, Miles and Tara will house key service workers within those towns, easing the housing stress brought about by the resource sector boom. At present four houses held by the trust are being utilised for affordable housing. However, with only one major industry contributor to the trust, we have limited funding to assist in delivery of this important affordable housing initiative. I encourage other energy proponents in the region to meet their social obligations and contribute to the trust.

INCREASE TO GST FAVOURED IN BUDGET BALANCING .

COMMENT Cr ROBERT LOUGHNAN Mayor, Maranoa Regional Council

oth the federal and state governments are presenting some challenges and questions in the lead-up to the Budget, and I feel they are questions we as a

community need to answer. In Queensland, the case for reeling in state debt has been well articulated and while few people can deny the situation, they will debate the solutions. The government is clearly angling for a suite of asset sales; while many of the state-owned assets might be fair game for privatisation, offloading important utilities like Ergon will only gain

short-term results. I would favour an increase to the GST, but that would take a level of political courage across the entire Federal Government for a change to be made. The talk in Canberra is not so much about selling assets as tightening up on welfare and freeing up foreign trade conditions. While I know most people involved in agriculture will welcome some easing

of the export trade restrictions into Asia, it is the import trade concessions that are causing concern at my end of the region. The 457 visa system has been an increasingly familiar and welcome tool in the Surat Basin, and has been of great assistance in overcoming some of the domestic skills shortages. Speculation is rife that foreign- and state-owned

entities might soon be allowed to build and operate infrastructure their own domestic labour. I am concerned that this plan is being misrepresented as being similar to visa schemes when it is clearly something very different. I have written before about my council’s desire to establish an abattoir in the Maranoa. A facility with the flexibility to process different animal

types would be a terrific way to add value toour community as a whole. Imagine if a foreign-owned entity were to build and operate a plant in Roma and export exclusively to its own country, possibly even sourcing animals from its own feedlots. The ownership and control of key infrastructure - such as abattoirs and ports must be valued now as never before.

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OPINIONS

PLANS NEEDED FOR INDUSTRY .

COMMENT CAMPBELL NEWMAN Premier of Queensland

e’re relentless in our push to grow a four pillar economy around the state. By concentrating on agriculture, resources, tourism and construction we really can make Queensland the engine room of the Australian economy. I spoke at length on the resources industry in last month’s column and I’d like to take this opportunity to talk about a couple of recent highlights in agriculture in the region. In South-West Queensland for instance, we’ve just allocated almost $4 million to help double pasture production in the region which has the potential to boost productivity by $20 million. Just one of many ways we’re working to double agricultural production in the state by 2040. It’s one part of a $31 million natural resources management project that will be managed by South West Natural Resources Management Ltd. The program will include water point control and fencing to protect more

than 400,000 hectares of land each year from feral animals like wild pigs, goats and dogs. The damage these animals cause cost our sector just under $40 million a year. It will also be put towards reducing pest weeds like Parkinsonia, Hudson Pear and Parthenium. Projects like these are vitally important to growing our economy. My Government is committed to ensuring our beef industry is supported and well-positioned to take advantage of all market opportunities. Global demand for beef has been forecast to grow strongly over coming decades, even though much of Queensland was currently doing it tough from the drought. That’s why we’re seeking feedback from cattle producers on the Government’s Beef Industry Action Plan. The draft plan paints the current industry picture and a pathway for government to support industry reach the production goal through 11 key areas. The draft Beef Industry Action Plan and information on how to provide comment is available from www.daff.qld.gov.au or by contacting the office on 13 25 23. Submissions must be received by 5pm, May 21.

WE MUST LESSEN RELIANCE

was born in Roma and our region has undergone a transformation before my eyes with the expansion of coal seam gas and other mining operations. Rapid population growth and infrastructure development has created new jobs and opportunities but it has also presented many new challenges. Housing stress, increased pressure on infrastructure and social implications are some of the challenges that have been presented. However I believe the way we have examined the mining industry and its challenges is a reactive approach. Now is the time to welcome discussion to achieve a symbiotic relationship between industry and community. I believe a culture of dependency exists where the mining industry is expected to compensate for the challenges experienced in its operating region. Compensation occurs in many forms but, from my experience, presents itself as donations, employment opportunities and business support.

COMMENT BRUCE SCOTT MP Federal Member for Maranoa

While I congratulate the industry for community support, we need to move away from dependency in preparation for the inevitable downturn. Mining resources are finite. We need to build a diverse local economy, empowering and skilling our workforce and build a community brimming with enriching social infrastructure. Liveability, health, education, sporting and cultural facilities as well as road and transport connections are very real issues and these issues need to be addressed. I believe a new policy framework needs to be explored. At the beginning of mining in our region, I facilitated a Meeting of Minds in Dalby where concerns and ideas were raised and explored. The Surat Basin is my backyard and this is a serious policy discussion we need to have. We need to think beyond the here

Surat Basin NEWS Thursday 1 May 2014

QUESTION TIME: Member for Maranoa Bruce Scott asks a question during Question Time, in the House of Representatives, last year regarding the carbon tax burden and the Wilkie Creek coal mine’s closure on the Western Downs. Photo Contributed

and now and plan for our children’s future. When the resources end, what did we achieve? We need to have this debate and I want to be part of a community that made wise decisions. I believe we need to broaden our economic base and aid the permanence our Surat Basin communities. The Royalties for Regions program has delivered millions of dollars to communities impacted by the resource sector however there is another framework which has helped to secure the future of an overseas region when mining concludes. In Scotland, disruption payments made to the Shetland Council set out in the “disturbance

agreement of 1974”. Money negotiated under the 1974 agreement by the Shetland local council from the oil company operating the Sullom Voe oil field was paid into the Shetland Charitable Trust. Council’s oil revenue came from two main sources, the first was “disturbance payments” agreed under the first deals with the oil industry in 1974 to compensate for social and economic dislocation. When the agreement ended in 2000, the disturbance receipts had amounted to more than £81 million. Because of its Trust reserves, the Shetland Council was considered one of the wealthiest local councils in the United Kingdom.

PAGE 15

DOWN TO BUSINESS

DOWN TO BUSINESS THE MASSIVE APLNG PROJECT IS BUILDING MOMENTUM WITH FIRST GAS ON THE HORIZON. THIS MONTH, WE TAKE A CLOSE LOOK AT ITS PROGRESS.

HUGE JOB: Sunset on Curtis Island with workers in the foreground showing the scale of the Australia Pacific LNG Project LNG train 1 modules.

PAGE 16

Surat Basin NEWS Thursday 1 May 2014

DOWN TO BUSINESS

The Condabri complex near Miles is a major APLNG hub.

Hundreds of workers are based at Talinga.

POWERING AHEAD: The sprawling Talinga site is a key factor in the APLNG plan to export gas. Photos Contributed

APLNG GOAL IN SIGHT Surat Basin gas processing facilities at top of the priority list for project staff

he firing up of gas processing facilities and water treatment facilities in the Surat Basin is at the top of the priority list for workers on the massive Australia Pacific LNG Project. The project, an incorporated joint venture between Origin Energy, ConocoPhillips and Sinopec, continues to make good progress across all areas of operations from the Surat Basin to Gladstone. Pre-commissioning work on Curtis Island off Gladstone, where the LNG export facility is being constructed, will

also be a major task for staff this year. The Project is divided into Upstream and Downstream components, with Upstream including the drilling of wells, development of gas processing and water treatment facilities and construction of an export pipeline, while Downstream focuses on the construction of the LNG export plant and associated infrastructure on Curtis Island. Once the natural gas from coal seams is extracted and transported via the export pipeline to the Curtis Island plant, it is processed through

compression and chilling units known as ‘trains’ that cool the gas to -161°C. This cooling process reduces the gas to 1/600th of its normal volume, transforming it to Liquefied Natural Gas (LNG) and enabling it to be stored in two large 58 per cent complete with well drilling and gas and water gathering works progressing ahead of schedule, and the main

LNG tanks, ready for export. The two gas production trains will process up to nine million tonnes of LNG per year. At the last reporting period for the Australia Pacific LNG Project, the Upstream component was export pipeline nearing completion. The main high pressure gas transmission pipeline that will connect gas field

WHAT IS APLNG? The ambitious Australia Pacific Liquified Natural Gas project will transport gas from the Surat Basin to Curtis Island for export. The first gas will be exported in mid-2015.

compression facilities with the LNG facility on Curtis Island was 91% complete at the end of 2013. Mainline welding is complete through to Curtis Island with a number of tie-ins remaining. Crossings, facilities and final reinstatement are the last elements to complete main pipeline construction, which remains on schedule. The Downstream component was 62 per cent complete with all LNG refrigeration compressors for Train 1 set and the compressor table tops for Train 2

complete. The last Train 1 module is expected to be set later this year. During 2014, the remaining train modules will be delivered to Curtis Island, the administration and control buildings will be commissioned, and gas will be introduced to the facility. By year-end, the Australia Pacific LNG Project will have substantially completed mechanical and electrical systems and be transitioning into pre-commissioning activities. The Australia Pacific LNG Project remains on track for first LNG export in mid-2015.

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PAGE 17

DOWN TO BUSINESS

BUSINESS PROFILE

Cockatoo Coal - ASX Code: COK

Blue Energy - ASX Code: BUL

BHP Billiton - ASX Code: BHP

Leighton - ASX Code: LEI

0.045

0.55

39.00

0.040

0.50

38.00

21.00

0.035

0.45

37.00

20.00

0.030

0.40

36.00

19.00

0.025

0.35

35.00

18.00

Mar 28

Apr 4

Apr 11

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

Mar 28

Apr 4

Apr 11

Mar 28

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

Apr 4

Apr 11

22.00

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

Mar 28

Apr 4

Apr 11

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

HOUSING HELP SATISFIES AMY Behind The Desk with Amy McNamara from Horizon Housing

difference in people’s lives. ■ Where are you from originally? Horizon? I grew up in Roma, and I was originally a moved to Brisbane to hairdresser by trade, but work for Queensland wanted to work in a role Health. that helped others. I returned back to Roma I had a friend who worked at the end of last year, and with Horizon Housing in received the job in Roma, who introduced me Horizon in January this to this not-for-profit year. organisation, and I was ■ Why did you choose to really interested in work in Roma? working for a place where It’s my hometown, and I I am able to make a real have a close connection

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here as this is where all of my family and friends live, so it’s great to be back around my loved ones. It’s also important for me to give back to my community, which I can do through this job. ■ How have you enjoyed your time out here? So far I’ve really enjoyed my time in Roma and working for Horizon Housing. The role is really busy and keeps me on my toes,

but it’s worth it when you know at the end of the day, I’m part of an organisation that’s really changing lives. ■ What is the most rewarding part of your job? I started working for Horizon Housing in January 2014 as a tenancy assistant. In my role, I deal with tenant applications for housing solutions that are affordable, secure and fit each individual’s needs,

as well as handling tenant enquiries to assist them down the right track. Seeing that people have a roof over their heads and knowing that I have in my own way contributed to helping this happen is the most rewarding part of my job. ■ What would you like to do in the future? In the future, I’d learn more about their eventually like to be a situations and the property manager, so I housing sector. can have a more direct role with tenants and

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BUSINESS PROFILE

Origin - ASX Code: ORG

Transfield - ASX Code: TSE

Santos - ASX Code: STO

New Hope - ASX Code: NHC

15.00

14.20

0.88

3.05

14.80

14.00

0.86

3.00

14.60

13.80

0.84

2.95

14.40

13.60

0.82

2.90

14.20

13.40

0.80

2.85

Mar 28

Apr 4

Apr 11

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

Mar 28

Apr 4

Apr 11

Apr 22

Share price listed was accurate at close of business on the days listed in 2014

Mar 28

Apr 4

Apr 11

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Share price listed was accurate at close of business on the days listed in 2014

Mar 28

Apr 4

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COMPANY THRIVES IN BOOMING BASIN Behind the Desk with Onsite Rental Group Chinchilla manager Ricky Sansom ■ WHAT is the core business of Onsite Rental Group? Onsite is an equipment rental business specialising in servicing B2B customers. Onsite is a diversified specialist. What this means is that we carry a full suite of rental products, so we can operate as a one-stop shop. How we differentiate ourselves is by retaining product specialists in each one of those product categories who can offer expert application advice to our customers - our knowledge - and by remaining independent of equipment manufacturers so our product specialists are free to offer genuine unbiased equipment advice - your choice. ■ How long has the company been operating out of Chinchilla and the Surat Basin? Onsite began in earnest in

the Surat Basin in 2009 after securing a contract to provide power generation to QGC. This was secured by performing a power audit on QGC’s existing generators and putting forward a proposal to replace them with more fuel-efficient and correctly-sized machines that delivered material fuel consumption and carbon emission savings. ■ What does the company hope to achieve in the Surat Basin? Onsite hopes to entrench itself as a genuine part of the community in the Basin. We have enjoyed great success in other regions, such as the Pilbara in Western Australia, by focussing on taking a long-term view to our presence in these areas. Onsite makes a conscious effort to involve itself in initiatives and

activities that give back to the community, employing locals and using as much local content in our supply chain as possible. ■ What do you think the next five years has in store for the region? We believe the region will continue to prosper on the back of the resources expansion. With many sites moving from construction to operation we also expect to see further growth in the non-construction related population. We have seen this process evolve in other regions that have experienced resource-related expansions and it is exciting to see this unfolding in the Surat. This is when the local population begins to see the sustainable and ongoing benefits associated with the real underlying growth that

results from these construction booms. ■ What is involved with your role at Onsite Rental Group? I am the branch manager and am involved in all aspects of the branch. ■ What is the key to running a successful business? Onsite operates in a service industry, so the answer to this question is easy — people. Our entire strategy revolves around two critical outcomes: customer advocacy and employee engagement. We never forget one simple rule: Onsite doesn’t make anything. The value we offer to our customers is derived from the dedication, skill and engagement of our staff. ■ When you’re not at work, what keeps you busy? Family. I moved to Chinchilla nine months

TAKING CHARGE: Onsite Rental Group Chinchilla branch manager Ricky Sansom is happy he made the move to the Surat Basin.

ago from Western Australia with my wife, Deborah. ■ What is your favourite way to relax in the

Chinchilla area? Going out for the odd meals and spending time with friends. I play golf every Saturday.

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PAGE 19

DOWN TO BUSINESS

PIPELINE ALMOST FINISHED T he Santos GLNG project is 80 percent complete and remains on track for a landmark liquified natural gas first in 2015. The Surat Basin News team caught up with Santos to see exactly where things were at.

Upstream

In line with the 2014 drilling plan, 35 wells were spudded in the GLNG acreage during the first quarter, which included 24 development wells - 19 at Fairview and five at Roma - and 11 appraisal wells. Existing wells in Fairview

continue to exceed expectations, with a current average optimum gas rate of 1.9 TJ/day per well from the 171 current producing wells. The Roma field continues to perform in line with expectations, with 50 wells online. Construction at the three upstream gas hubs

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progressed towards 85% complete during the quarter. The planning and ramp up of commissioning activities has commenced.

Gas transmission pipeline

The 420-kilometre gas transmission pipeline is progressing well and remains on track for completion in the second quarter of 2014. All pipeline is in the ground and reinstatement is complete on 85% of the pipeline route. Pre-commissioning is well underway, with 85% of clean and gauge activities successfully completed and 48% of the pipeline hydrotested. A major milestone was achieved during the quarter, with construction completed on the 4.3km marine crossing tunnel and the pipeline successfully installed. Testing, tie-ins and end MAKING PROGRESS: Construction of Santos GLNG's three upstream gas plug construction is hubs - including the Roma Hub 2 - is about 85% complete. underway.

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DOWN TO BUSINESS

The Santos GLNG site on Curtis Island. Photo taken in january 2013

SPECIAL DELIVERY: Santos GLNG's final three modules arriving on site at Curtis Island. Photos Contributed

SANTOS GLNG UPDATE

ALL SYSTEMS GO ON ISLAND C onstruction on Curtis Island continues to progress well, with all 82 Train 1 modules delivered to the site and installation nearing completion. Six of the 29 Train 2 modules have been

delivered to the site and construction is underway on all of the remaining Train 2 modules. Module connections, piping fit-up and welding, and cable pulling are progressing, and the gas flare stacks have been raised into position.

Three of the five inner nickel steel tank shell rings for Tank B have been installed and installation of internal instrumentation piping has commenced. Work also continues on Tank A, with two of the five nickel steel tank shell

rings installed. The facility’s jetty is over 95% complete, with the installation of quick-release mooring hooks and fenders complete, and installation of the gangway tower and pre-commissioning works also underway.

The central control and administration and marine terminal buildings are over 90% complete, with commissioning and handover procedures already being undertaken.

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The Santos GLNG project involves building gas wells in the Surat Basin, and constructing a 420km pipeline to transport the gas to Curtis Island.

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Surat Basin NEWS Thursday 1 May 2014

www.specialityservicesqld.com.au PAGE 21

DOWN TO BUSINESS

THIESS MOVES INTO SURAT BASIN

THOUSANDS OF WORKERS ARRIVE

ON THE GROUND: Thiess have over 3000 direct employees and subcontractors working on sites such as this one at Bellevue central processing plant. The company is a key player in QGC’s QCLNG project.

HIESS has become a familiar face in the Surat Basin, ramping up in the region as they continue their work on QGC’s QCLNG project. Thiess’ scope of work on the project was

significantly expanded in September 2013, when the company was awarded a contract to build a further 11 field compression stations and three central processing plants in addition to the six FCSs and one CPP already under construction.

In November 2013, Thiess moved its head office from Dalby to Chinchilla, and now has about 2000 employees and 1200 subcontractors working across 21 sites over a 400km distance between Dalby and Wandoan. Thiess QCLNG project

director Joe Dujmovic said the major challenge of the project was undoubtedly logistics. “If it was all in one location it would be challenging enough,” Mr Dujmovic said. “We’re getting people to come from all over

Australia and then sending them off to 21 sites, all the while keeping control of project supplies, delivery, quality, systems and safety – that’s where the challenge lies.” Thiess have now handed over the majority of its

6+1 early works contract to QGC, with the recent completion of the Ruby Jo central processing plant and Ruby Jo, David, Isabella, and Harry field compression stations, as well as two earlier field compression stations, Argyle and Bellevue.

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Surat Basin NEWS Thursday 1 May 2014

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DOWN TO BUSINESS

THIESS HAS LONG HISTORY IN REGION

Band of brothers turn small family company into industry giant

HE Thiess name is not new to the Surat Basin region and the company, which originated in Drayton, recently celebrated its 80th birthday. From humble beginnings as road contractors on the Darling Downs in 1934, Thiess is now Australia’s leading mining, construction and services contractor with diverse international operations. In May 1958, the company reached a major milestone when Thiess Brothers became the first Australian company to be awarded a major contract on the iconic Snowy Mountains Hydro-Electric Scheme. This became a springboard for a strong reputation as the company successfully

completed four major contracts worth more than $98.7 million. Since those early days, Thiess has continued to deliver essential infrastructure projects ranging from highways and airports, to dams and ports, to hospitals and commercial buildings and has also played a vital role in developing Australia’s booming resources sector, particularly coal. Thiess also has a very strong mining presence in both Indonesia and India. In 1983, Thiess became part of Leighton Holdings – Australia's largest project development and contracting group. Fast-forwarding, the business has more than 17,000 staff and an annual turnover of more than $7 billion.

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HAPPY BIRTHDAY: Thiess Bros recently celebrated their 80th birthday.

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PAGE 23

BUILDING THE BASIN

EASTWOOD TO EASE RENTS

wo families have come together to celebrate the completion of a $17 million accommodation project that has been lauded as the biggest-ever private investment in Miles. The Eastwood was a joint venture between Dalby-based construction giant Ostwald Bros and Miles Foodworks owner Son Bac Ngo and his family. The 200-bed accommodation village on McNulty St opened for business on February 1 but was officially

opened in April. A relieved Mr Ngo joked that his family would finally get a break with the end of the project’s five-year planning and construction phase. “It’s all I ever talked about,” he laughed. “Now I can finally shut up about it. “It has been a very long journey, so it is nice to see it finished.” The project was praised by Western Downs Regional Council Deputy Mayor George Moore and Miles and District Chamber of Commerce president John Hoffmann.

Mr Hoffmann said The Eastwood would help to relieve high rents in the town of Miles. “Facilities like this will bring resource industry workers in to town and the economic benefits to Miles will be enormous,” he said. The sprawling village features a gym, entertainment room, tennis court, a 300-seat dining hall, a swimming pool and a spa. Ostwald Bros is still expanding its accommodation empire, with staff currently managing about 2000 guests across 13 camps in the Surat

BUILDING THE BASIN PAGE 24

Surat Basin NEWS Thursday 1 May 2014

Basin every night. Unlike many workers’ camps, The Eastwood is also open to members of the general travelling public. “It takes the pressure off the local housing market and averts housing affordability and availability issues that can arise when new industry moves into a rural area,” Brendan Ostwald said. “It’s also a home away from home for Ostwald Bros staff after a hard day’s work.” PICTURED: Brendan Ostwald and Son Bac Ngo at the opening.

BUILDING THE BASIN

1. Former Murilla Shire Council CEO Ian O'Donnell catches up with former mayor Roderick Gilmour, Ailsa Gilmour and Maureen O'Donnell at the opening of The Eastwood in Miles. 2. Professor Miles Moody inspects one of The Eastwood's 200 rooms. 3. The Eastwood features a fully equipped gym for guests. 4. John Nguyen, Son Bac Ngo, John Hoffmann, Thuy Nguyen, and Brendan, Howard and Dan Ostwald officially open The Eastwood. 5. Ostwald Bros project manager John Huynh with John and Kelly Mullins from Mullins Plumbing.

6. Briony Heatley, Shane Fernor, Damien Cavanagh and Matt Kavney celebrate the opening of The Eastwood at Miles 7. Andre Oberholzer and Thomas Higgs from Ostwald Bros check out the huge 300-person dining hall.

8. Ostwald Bros Facilities and Accommodation operations manager Claire Robinson shows off The Eastwood's recreation room, featuring two pool tables.

9. Lawson Reid checks into The Eastwood with manager Adam Richardson. 10. Guests tour the expansive grounds of The Eastwood on its opening day.

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PAGE 25

BUILDING THE BASIN

TRUST LOST IN HOUSING SUPPLY PLAN

WORK BEGINS CONSTRUCTION has begun at the site of the new Chinchilla Waste and Recycling Centre. Western Downs Regional Council Mayor Ray Brown and councillors joined representatives from Carmichael Builders in planting trees that will form part of the landscaping for the site. Once built, the new waste management facility, funded by Western Downs Regional Council and the State Government under the Local Government Grants and Subsidies Program (LGGSP), will provide residents with increased recycling opportunities. For information visit www.wdrc.qld.gov.au

BY Lyndon Keane

it is, it’s not working effectively,” Cr Moore said. The housing trust is he delivery of overseen by a statutory affordable board – consisting of housing on the Mayor Ray Brown, Western Downs Councillor Ray Jamieson has split council opinion, and the council’s chief with suggestions that the executive officer, Phil opportunity “to make a Berting – an advisory difference” for residents board and a reference has been missed. group, but Cr Moore said Western Downs Regional he believed its structure Council’s Deputy Mayor was adding an additional George Moore raised the level of governance that subject on April 2 by had “proved to be telling councillors he had restrictive and “had concerns for some cumbersome”. Only four dwellings – rented off QGC – are managed by the housing trust, with another three developments in Chinchilla, Miles and Wandoan started in 2013. Cr Moore garnered support during the April 2 meeting, with Cr Charlene Hall asking Western Downs Regional Council Deputy Mayor George Moore (right) says whether it would be “timely to go back and … affordable housing is not being delivered quickly enough in the region.

time” that the Western Downs Housing Trust was failing to deliver a timely solution to skyrocketing rental prices. The housing trust is a charitable body set up in 2012 by the council to provide affordable housing to residents not working in the resources sector and has received $5.9 million in donations from energy giant QGC to do so. “I’ll be honest, I don’t think it’s working and, if

Fast facts

■ The Western Downs Housing Trust aims to “implement unique and sustainable housing strategies” that address housing affordability in the region. ■ QGC has donated almost $6 million – $200,000 in 2011 and $5.7m in 2012 – to the housing trust. ■ The housing trust is undertaking three developments in Wandoan, Chinchilla and Miles. ■ The housing trust currently leases four QGC-owned dwellings in Chinchilla, Miles and Tara. ■ On April 2, councillors resolved to request a report from the housing trust advisory board on how it had addressed its goals. see if this is money well-spent”. When asked whether the housing trust had lived up to expectations, Cr Brown said he believed it had, given it was required to buy land and follow the council’s normal development application process. “There’s expectations you can whack houses up overnight but, ask any developer, nope,” he said.

“The reference group, they supply information to the advisory board … which determines (whether) we actually need it.” While Cr Moore said he had no doubt the affordable housing would “make a difference once constructed”, he suggested that removing the housing trust could potentially expedite delivery.

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Surat Basin NEWS Thursday 1 May 2014

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BUILDING THE BASIN

NEW SPONSOR A MASTER STROKE Master Hire comes on board for massive Surat Basin Energy and Mining Expo

ith the 2014 Surat Basin Energy and Mining Expo less than two months away, organisers are celebrating the signing of a new platinum sponsor for the showcase event. The expo is hailed as southern Queensland’s premier energy, mining and resources event, and services the booming Surat Basin. Event organisers have announced that Surat Basin-based company Master Hire has confirmed its participation this year as a platinum sponsor.

Australian Events boss Bob Carroll congratulated Master Hire and said the ups and downs of the mining and energy sectors have been challenging for a lot of companies. “Master Hire are a shining example of how local companies can grow and prosper in a fiercely-competitive marketplace,” he told Surat Basin News. “Simply by paying close attention to the needs of their customers and delivering a very high level of customer service, they have become a market leader.

Master Hire are a shining example of how local companies can grow and prosper in a fiercely competitive marketplace Australian Events boss Bob Carroll “We are so pleased that a locally-based company of this calibre has become the leading event sponsor for the Surat Basin

CRACKED WALLS? SUNKEN FLOORS?

MASTER EFFORT: Master Hire general manager Matt Ernst, managing director Scott Marchant and Surat Basin regional manager Dwayne Unahi chat about the company's new sponsorship agreement with Australian Events director Bob Carroll. Photo Gen Kennedy

Energy and Mining Expo.” The event is designed to support the Queensland resources industry while

providing an environment for businesses and visitors to network, market and generate sales, leads and industry

contacts. It will take the Toowoomba Showgrounds by storm on June 18 and 19.

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Surat Basin NEWS Thursday 1 May 2014

PAGE 27

BUILDING THE BASIN

ADVERTISING FEATURE

OWNERS CELEBRATE NEW MOTEL OPENING

BUILDER ENJOYS SUCCESS

LONG four-year journey to build one of the Surat Basin’s premier new motels is finally over for Miles builder and local, Robert Hinds. Mr Hinds celebrated with workers, family and friends last month with the completion of the Swagsman Inn — a grand motel sitting on top of the picturesque Dogwood Creek at Miles. As owner and builder of the 4½-star motel, Mr Hinds began developing the project back in 2010. Construction began in November, 2012, and finished last month. The end result is one of the most impressive new buildings in the Surat Basin. The $4 million motel’s grand entrance welcomes guests to its 28-room complex, which also features a two-storey

JOB DONE: Swagsman Inn builder and owner Robert Hinds is proud to open his new motel for business. Photo Jim Campbell

restaurant and cocktail bar, large outdoor entertaining area, full undercover parking and, of course, river views. But that is just the start. Stage two of the Swagsman is already under construction and will boast another 19 rooms, a gym and heated pool. Mr Hinds, who hasn’t missed a day of work on the motel since construction started, said he was proud of the final result. “I think the position on the creek will really win people over,” he said. Mr Hinds and his family look set to reap the benefits of their hard work with a major company already securing a significant, long-term booking. Robert Hinds Builder is a local leader in domestic and commercial building, as well as renovations.

I think the position on the creek will really win people over. MIles builder and owner, Robert Hinds

eR b Ro

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PAGE 28

roberthinds@bigpond.com Po box 98, Miles

Surat Basin NEWS Thursday 1 May 2014

5638040aa

Phone 4627 2663 stay@swagsmanmotelmiles.com.au

5638039aa

Swagsman Inn

2 stage development 1 - 11 Marian Street, Miles

renovations

Ph. 07 4627 2201 Mob. 0427 133 702

28 motel rooms - long stay, spa and executive units Licensed bar and restaurant

commercial

BUILDING THE BASIN

ADVERTISING FEATURE

NEV PROUD OF MOTEL Experienced company looks after all refrigeration and air conditioning at Swagsman Inn Downs and Surat Basin. Nev offered a big congratulations to the Swagsman Inn and said he was proud that his business was involved in the supply and installation of all refrigeration and air

conditioning at the brand new motel. JW Refrigeration and Air Conditioning supplied all cold rooms, glass chillers, freezers, ice makers and air conditioning in the construction of the Swagsman Inn.

Nev said he was passionate about the air conditioning industry and, having been in it for 50 years, he knows it inside out and back to front. “Much has changed with air conditioning

or commercial property, Nev is the person to talk to.

technology over the years, but we have kept up with it all and have continued to grow the business,” he said. If you need advice and guidance about the right air conditioning system for your home, business

Page29 SEE STORY

Swagsman rooms

Give us a call and check out our fantastic range of products and specials

JW Refrigeration & Air Conditioning

KEEPING COOL: The Swagsman Inn features a classy two-storey restaurant, with a cocktail bar on the top floor. JW Refrigeration and Air Conditioning installed all refrigeration and air conditioning throughout the new motel.

Congratulations to the Swagsman Inn on the opening of your new complex m. 0412 864 224 p. 07 3863 3333

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Surat Basin NEWS Thursday 1 May 2014

PAGE 29

BUILDING THE BASIN

ADVERTISING FEATURE

ROOM WITH A VIEW

SWAGSMAN OFFERS MORE ROOM

ROOM TO MOVE: Rooms in the Swagsman Inn are far bigger than your average motel room.

he best feature of the Swagsman Inn is the most important of any motel — its rooms. Owner Robert Hinds said he put careful consideration into the motel’s rooms and a top priority was making each apartment as spacious as possible. “If you can just make each room that little bit bigger and better than the next motel, it makes all the difference,” he said. The Swagsman Inn features a variety of room styles, including spa

This room features a luxurious spa bath. Photos Jim Campbell

PAGE 30

Surat Basin NEWS Thursday 1 May 2014

If you can just make each room that little bit bigger and better than the next motel, it makes all the difference. Owner Robert Hinds

units, long-stay units, family units and executive units. Each of the 28 rooms in

stage one boast cable television, undercover parking, wireless broadband, high ceilings and, arguably the best feature — a huge private balcony area, the majority of which overlook the beautiful Dogwood Creek. When completed, stage two of the Swagsman Inn will include another 19 rooms, bringing the total number of rooms to 47.

Page 32 SEE STORY

TSBE event pulls crowd

BUILDING THE BASIN

ADVERTISING FEATURE

SWAGSMAN INN MILES A WHOLE NEW LEVEL OF ACCOMMODATION

ot only is the Swagsman Inn bringing a whole new level of accommodation to Miles, it will also add another aspect to the town’s social scene. The two-storey restaurant brings a new style of dining sophistication to the town, while its upstairs cocktail bar is also a great new spot for a relaxed after-work drink overlooking Dogwood Creek. On the ground floor, the motel boasts a massive outdoor entertaining and barbecue area. Next on the list is a large heated pool and a gymnasium to help guests stay in shape around their work commitments. For guests looking to explore the local area, the picturesque Dogwood

GREAT VIEW: Swagsman owner Robert Hinds enjoys the view from a room's private balcony, which overlooks the beautiful Dogwood Creek. The motel boasts a huge outdoor entertaining area perfect for your next function, or for relaxing after work. Photos Jim Campbell

79 Dawson Street, Miles

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Carl, Brett and the team from Chinchilla Kitchens are proud to be involved with the new complex.

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Creek walking track runs along the creek right beside the motel, putting the great outdoors literally on the motel’s doorstep.

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PAGE 31

PLACES & FACES

TSBE ENTERPRISE NIGHT ATTRACTS RECORD CROWD THE outlook for Toowoomba and how major developments will shape the city were just two of the topics on the agenda at the third Toowoomba and Surat Basin Enterprise enterprise evening of 2014. The record crowd of nearly 320 attendees listened to panellists John Wagner, Toowoomba Regional Council Mayor Paul Antonio and USQ’s Steven Raine answer questions about their views on the future of the city, the impacts of new developments and their vision for Toowoomba in the coming years.

PLACES AND FACES

1. Liam Fisher from ANZ, Deanna and Stephen Muhldorff from Baker Rossow Consulting Engineers and Norman Purcival from Wagners. Photos Contributed

2. Michael Matthewson from Wiley and Co, Scott Templeman from Toowoomba Regional Council and Andrew Douglas from Nexus Executive Services 3. Theresa Zhang, Terry Turner and Jonathon Abraham from Laguna Serviced Apartments 4. Troy Martin from Puma Energy, Chris Low from Fortress Recruitment, Gregg Pluis from Puma Energy and Mark Cantoni from Fortress Recruitment 5. Leon Williamson from Exact Mining Services, Michelle Hoffman from Gasfields Commission QLD and Richard Holmes from Australian Industry Trade College.

6. Helen Braithwaite from New Hope Group, Phil Stonestreet from Stonestreet’s Coaches, Suzie Washington from Lifeline Darling Downs and Southwest Queensland and Bill Conway from Stonestreet’s Coaches. 7. Ben Day from Classic Recruitment and Campbell Senz from McNab Constructions Australia. Photos: LUCY RC PHOTOGRAPHY

PAGE 32

Surat Basin NEWS Thursday 1 May 2014

PLACES & FACES

8. David Mackenzie, Monica Wilson and Grant Fuller from Comac Equipment. Photos Contributed 9. Anthea Middleton from Energy Skills Australia, Cola Maurirere from Careers Australia and Andrew Harvey from Darling Downs South West QLD Medicare Local.

10. Nivard Nelson from Taylor’s Removals & Storage, Julie Keron from IOR Petroleum, Melissa Taylor from Taylor’s Removals & Storage and William Mullholland from J&B Personnel. 11. Graham Strang from Hip Pocket Workwear, Bruce Gardiner from SJ Higgins Constructions and Boh Burima from Power Tynan.

12. Andrew Bowden from QLD Surveys Pegs, Sam Ginardi from BOC and Grant Craker from Jonker Hire and Engineering. 13. TSBE boss Shane Charles, Theo Psaros from Atec Rail Limited and Russell Neville from Queenscorp. 14 .Justin Roach and Paul York from RPMS, and Jason Johnston from Axiom Insurance Brokerage Services

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DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A GIRL IN THE DARK. YOU KNOW WHAT YOU’RE DOING, BUT NOBODY ELSE DOES. Stuart H. Britt Surat Basin NEWS Thursday 1 May 2014

5640756aa

Print Media Contact Laurell 4662 7368 advertise@suratbasin.com.au

PAGE 33

PLACES & FACES

FAST TALKERS: Roma Chamber of Commerce CEO Sharyn Garrett with Camille Johnson for Santos and BEP representative Katrina Marsh at the speed Jenny Rowe and Chris Proud from SWQEST at the Business Enterprise Pronetworking session at Roma. gram speed networking session.

BUSINESSES MAKE NEW CONNECTIONS

NEW IDEA WINS HEARTS

usinesses in the Maranoa are being connected with some of the major companies conducting projects in the region through the Roma Business Enterprise Program. A business speed-dating-style program was held at the Commonwealth Hotel in Roma, during which local companies networked with McNab, FKG, Ostwald Bros, Horizon Housing, Santos and Hutchinson. Roma Business Enterprise Program representative Katrina

Marsh said the aim was to connect six of the larger organisations who had contracts in the Maranoa together with capable businesses. “The businesses have got capability statements and elevator pitches to present to them, and we’ve set them up in a speed networking atmosphere like speed dating,” she said. “We have got 27 businesses from the Maranoa here and it’s amazing.” Katrina said there were a massive variety of businesses represented. “From the larger

safety gear and equipment, water solutions, geo-technical businesses and plenty of people from the construction industry.” Jenny Rowe from South West Queensland Emergency Safety Training said it had been a great opportunity to have exposure and promote the businesses. “With large contractors coming into town, it gives us an opportunity to promote ourselves,” she said. FKG Roma civil operations manager Kevin Chambers from FKG talking to Noel Smith and Jared Mana from Mas- Kevin Chambers said he liked the breadth of ter Hire and Neil McIntyre from Men at Work.

companies, we asked them for their upcoming opportunities, so we could tailor and target the invitations,” she said.

“The local businesses range from retail to earthmovers, optometrists, first aid, businesses that supply

IN BRIEF The new speed networking sessions borrow from the ‘speed dating’ concept, giving firms the chance to meet as many contacts as possible.

businesses that attended. “It wasn’t just related to building construction or civil, but spanned right across all opportunities including training organisations and an optometrist talking about providing subscription safety glasses,” he said.

DALBY INVESTMENT PROPERTIES OWNER OCCUPIED

Completely Finished From

$381,500

ASK ABOUT VENDOR FINANCE

Call Ken

4663 9727 www.greentreesestatedalby.com PAGE 34

Surat Basin NEWS Thursday 1 May 2014

5640768aa

PLACES & FACES

DONATION STUNS CROWD

lamorous diners, tireless fundraisers, a gold medallist and a cow all came together in Chinchilla to lend hands and hoofs to farmers doing it tough in drought conditions. Organisers of the Gala Dinner, local mums Natasha Johnston and Nicki Blackwell, set an ambitious $20,000

fundraising target, and by the end of the night they had been brought to tears by the generosity of their town. On top of the nearly $15,000 raised from raffles, auctions and entry fees, Murphy Pipe and Civil trunklines project superintendent John Carolan shocked the room into silence when he handed over a cheque for

$25,000. Mr Carolan said the hefty donation was the result of an even bigger effort by the company’s pipeline crews, who had raised the money by recycling scrap material left over from construction. “Our crews have laid pipelines all over rural Australia and have ... worked closely with farmers during

construction, so at different times they’ve all had to witness firsthand the effects drought can have on the land, the stock, but most importantly the farming community,” he said. Mrs Johnston said she could not believe the donation. “I still have a massive smile on my face,” she said.

BIG HELP: Murphy Pipe and Civil's John Carolan presents Nicki Blackwell and Natasha Johnston with a $25,000 donation to for Aussie Helpers.

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Surat Basin NEWS Thursday 1 May 2014

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Phone 0427 627 084 or 0437 249 096 PAGE 35

PLACES & FACES

QGC DONATION PUTS WANDOAN SHOW IN SPOTLIGHT

$300K LIGHT BOOST E nergy giant QGC is helping to keep the lights on at the Wandoan Show with a head-turning contribution of $300,000 towards the upgrade of infrastructure at the town’s showground. The Wandoan Show Society is about to

undertake a project that will provide more reliable electricity and water services and renovate the facility’s rotunda. QGC’s vice-president of sustainability, Brett Smith, said the work would improve safety and increase the show society’s capacity to meet

community needs. “We’re delighted to be able to help Wandoan Show Society to realise a project that has been on the wish list for a number of years,” Mr Smith said. “Increasing capacity of community organisations is a key focus of our $150 million social contribution

JUMPING FOR JOY: The community is celebrating QGC’s $300,000 donation to help upgrade Wandoan’s showground.

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through which we manage social impacts and maximise benefits from the Queensland Curtis LNG Project.” QGC has had a major impact on community groups in the town and has previously provided grants totalling more than $67,000 to the Wandoan Campdraft and Rodeo Association and the Wandoan Pony Club for improvements at the showground. More than $44,000 has been spent to replace cattle yards with multi-purpose pens and, in a boost for riders, $23,000 will be spent over the next few months to extend the cross country course and upgrade jumps. The pens will feature a cattle auction complex and six new water troughs.

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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

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