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GLOUCESTER GAS PROJECT

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The Gloucester Gas Project is located near the town of Stratford, in the Hunter Valley Region of New South Wales, about 100 kilometres north of Newcastle. It is wholly owned by AGL. The project has been given the go- ahead by the Commonwealth Government and this will now allow the further development of the project that will expand the coal seam gas industry in New South Wales by five times its current capacity.


The Gloucester Gas Project Will Involve Some Fracking to be Undertaken
The Gloucester Gas Project involves the drilling of up to 110 coal seam gas wells, some of which will involve fracking. Fracking occurs when a solution of water, sand and other additives are pumped into the coal deposit at high pressure. The pressure that is created fractures, or cracks, the coal deposit which then releases coal seam methane gas into the wells from which it is extracted. Not all the wells will require fracking, only the deeper or less permeable coal seams. To ensure fracking is carried out as safely as possible the government has subjected the project to a total of 36 strict conditions that have to be complied with.


The Gloucester Gas Project Will Produce 30 Petajoules of Methane gas a Year
The Gloucester Gas Project has probable gas reserves of 669 petajoules of methane gas and is expected to produce around 30 petajoules of gas annually. The project includes the following developments:


Stage one of the gas field development that includes the drilling of up to 110 gas wells along with any necessary infrastructure
A central gas and water treatment plant
A gas fired power station capable of producing up to 15 megawatts of electricity
A gas pipeline to transport the gas between the existing gas supply at Hexham and the central processing facility
A delivery station at Hexham that links the transported gas to the existing Newcastle to Sydney trunk pipeline


AGL Acquired the Gloucester Gas Project in 2008
AGL acquired the Gladstone Gas Project from Molopo Australia Limited and A J Lucas Group in 2008 and is now its sole operator. In May 2008 it was declared to be a Major Project by the New South Wales State Government Minister for Planning.


Drilling to Commence at the Gloucester Gas Project in 2015 with First gas Expected by 2016
Current planning will have drilling starting on the 110 Stage one wells in 2015 and it is expected to have the project operational and producing gas to customers in the Hunter Valley and Central Coast areas of New South Wales by the end of 2016.


All Gloucester Gas Project Drilling to be Undertaken by Experienced Operators
All drilling carried out as part of the Gloucester Gas Project will be performed by experienced drillers who will comply with Australian and international standards at all times. This is to ensure that only targeted coal deposits are drilled into and all shallow aquifers are isolated at all times. All the gas wells drilled will be cased in steel that are to be pressure cemented to the surrounding rock. This will ensure the aquifers are sealed off within the overlying sediments.


AGL was established in Australia in 1837. AGL Energy Limited is now Australia's largest renewable energy company that delivers energy related services to over 3.4 million Australians living in New South Wales, South Australia, Victoria and Queensland.


Coal seam gas is a natural gas often referred to as methane. It is located in coal seams beneath the ground. It is considered to be the cleanest and most environmentally acceptable fossil fuel available.
 

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