Queensland Gas doubles production
Queensland Gas Company (QGC) Ltd will spend $260 million to ramp up production to meet growing demand for natural gas as a cleaner alternative to coal.
QGC received some money to play with in March, when its shareholders voted in favour of a $327 million partnership with power retailer AGL Energy Ltd.
AGL took a 27.5 per cent stake in QGC, spurning an $812 million takeover offer by US investment firm TCW Group and an earlier, $710 million tilt at the company by rival Santos.
Through a $260 million development plan announced Thursday, QGC will aim to double sales next financial year and double them again the year after.
The Brisbane-based coal seam gas specialist expects to sell around 12 petajoules (pj) of gas this financial year, 30pj next year and 60pj in fiscal 2009.