AUSSIE SHALE INDUSTRY EYED
Australia is a step closer to establishing its oil shale in-dustry.
The federal and Queensland governments this month gave initial approval to a $145 million (Australian) pilot plant at Gladstone on Central Queensland's east coast, to produce 4,400 b/d of shale oil.
Sponsors Southern Pacific Petroleum NL, Sydney, and Central Pacific Minerals NL can proceed with plans for financing and engineering for the project.
The federal government also is extending an exemption of federal taxes on shale oil production to 2005.
The approval comes a few months after Unocal Corp. disclosed plans to shut down the sole commercial scale oil shale project in the U.S. (OGJ, Apr. 8, p. 38).
The Gladstone project could be on stream within 2 years of obtaining a mining permit and completion of an environmental impact study, depending on oil prices.
It could be expanded in later phases to sustain production rates of 14,000 b/d and 60,000 b/d.
Negotiations are under way with two undisclosed major engineering firms regarding plant construction and feasibility of the oil shale process.
The sponsors expect soon to sign a final agreement for a construction contract with one of the engineering firms.
Project technology is based on the Taciuk process, adapted from the method used in Athabasca oilsands plants at Fort McMurray, Alta.
It would tap the Stuart deposit, Queensland's biggest shale resource at 3 billion bbl of oil in place.
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