Unconventional gas is emerging as a major source of energy, Mr Rick Wilkinson, Santos President of the Gladstone LNG development, told the Conference, pointing out that converting coal seam gas to LNG required new analytical and technical skills for success.

CSG to LNG is a world first industry, attracting global attention to Queensland, he added.

The gas presented an abundant new resource for Australia, he said. Queensland CSG now represented more than half of eastern Australia’s 2P gas reserves. This is a “tipping point” in the gas industry, moving its centre of gravity from Bass Strait and the Cooper Basin.

An export industry was an efficient way to develop this large resource, with the big attraction being the energy-hungry Asian markets. As a result billions of dollars were being proposed for investment. CSG breaking plays and related acreage were now in high demand.

Mr Wilkinson said the complexity of taking CSG through a capital-intensive process to meet conservative buyer demand made it a particularly challenging endeavour.

"While there are challenges in establishing a world class first CSG to NG industry, the Australian gas industry has the experience and project skills to be a leader in this breaking opportunity."