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The Queensland Government has indicated its support for CSG as an alternative energy source including:
- by introducing the Queensland Gas Scheme which requires Queensland electricity retailers and other liable parties to source 13% of their electricity from gas-fired generation. The Queensland Government has recently stated that this target is expected to increase to 18% by the year 2020; and
- by announcing in February 2009 a new policy tackling overlapping tenements between Underground Coal Gasification (UCG) and CSG producers. The government decided that in the case of existing exploration tenements where there were overlapping claims, preference would be given to the CSG tenure holder.
The Queensland Government is currently considering seven Liquefied Natural Gas (LNG) projects, a number of which are planned at Gladstone, Queensland.