Traces of cancer-causing chemicals have been identified in Origin Energy Ltd’s
(ASX:ORG) liquefied natural gas joint venture in Queensland.
In an update of its coal-seam gas wells, the oil and gas producer has been told by Australia Pacific LNG that BTEX chemicals have been found in fluid samples from eight exploration wells in the Surat Basin.
Origin Energy is a joint venture partner with American oil company ConocoPhillips.
The news of toxins is sure to be a blow to the companies, who are awaiting environmental approval to continue with their proposed projects.
Origin says water produced from the relevant wells is contained in lined and fenced ponds and tanks for treating and is also isolated from water courses and livestock.
Adding that, comprehensive testing is currently underway to determine the source of the BTEX and all available evidence suggests that there has been no impact on surrounding landholder bores.
Origin Energy posted a $680 million profit in fiscal 2010.
