November 18, 2013
The processing of liquid natural gas in Queensland for export could become a trigger for Stanwell to fire up one or both of its mothballed power generating units at Tarong Power Station.
Rumours have been circulating that the government-owned corporation was starting preliminary planning towards a restart of the 350MW units which were put into cold storage last year.
A Stanwell spokesman said it had been stated at that time that any future return to service of the units depended on the electricity market improving.
“There has been a weak improvement in the wholesale electricity market since last year,” the spokesman said.
“However, there are encouraging signs that the processing of LNG for export from Gladstone beginning next year may lead to increased demand for power in Queensland.
“Stanwell is putting together a plan to ensure that, if and when the decision is made to restart any of the Tarong units, we know the cost, scope and schedule of the work required.
“It must be stressed, however, that if the electricity market does not improve, the units will remain in cold storage.
“Stanwell has no plans to expand its workforce at the Tarong Power Stations.”
A second lot of rumours suggested a possible expansion of the current Meandu coal mine into an area adjacent to the current pits, requiring the relocation of a transmission towers and lines.
“The Tarong Power Stations and Meandu Mine will be providing power for Queensland, and jobs for the South Burnett, for many years to come if a plan to extract more coal from within the existing mining lease pays off,” the Stanwell spokesman said.
“An exploration drilling program done over the past three years found additional coal resources in an area immediately to the south-east of existing mine pits.
“To access the new resources Stanwell, which owns the power stations and mine, will need to apply for various regulatory approvals.
“Stanwell believes it will be able to improve its financial position by mining this new area to fuel the power stations.
“This development means the mine and power stations will be able to continue providing South Burnett jobs over the next 24 years.
“Meandu Mine’s near neighbours will be kept informed throughout the approvals process.”
And what effect would the Federal Government’s scrapping of the carbon tax have on Stanwell?
“Last financial year, Stanwell’s carbon tax bill was $355 million, making the tax Stanwell’s biggest expense,” the spokesman said.
“Abolishing the carbon tax would help return Stanwell’s power generation business to profitability. Currently it is operating at a loss.”
