"The Coal Seam Gas Water Management Study was commissioned by the Department of Natural Resources & Mines - with financial support from industry and the Commonwealth - to discover beneficial ways to use this by-product water in areas with scarce water resources,” said Natural Resources and Mines Minister Stephen Robertson.
"The Surat Basin has the potential to become one of Queensland's most important energy resource provinces but water is a very scarce in the south west."
"The coal seam gas industry has the same responsibility as farmers and communities to improve water use efficiency and to value every drop they use,” said Robertson.
"This study will not only help improve the industry's sustainability but could provide greater certainty of water supply to industry and communities like the Murilla, Wambo, Chinchilla and Dalby Town shires in the Surat Basin."
Coal seam gas production involves extracting methane from coal seams by reducing groundwater pressure that keeps the methane trapped in the coal. A primary by-product of this process is water, which is often rich in salts and other elements.
"While the water is generally not suitable for domestic use there are many industrial and agricultural uses that are currently being explored," Robertson said.
The study identified potential uses of coal seam gas by-product water as Agriculture, aquaculture, niche industries like algae farming, industrial use in coal mining and water cooling; municipal potable water supply, community water supply and recreational activities.
"Use of this water would depend on quality and quantity and it is anticipated some or all of the by-product water would require treatment to meet required water quality standards."
Richard Cottee, managing director of Queensland Gas Company said the study was an important step in the emergence of the Surat Basin as a major supplier of natural gas for Queensland's development.
"This study highlights what can be achieved through co-operation between the government and private sectors and will help ensure that the water is effectively used," he said.