The gas dial has turned up in Queensland with new companies seeking gas for the domestic market and thousands of square kilometres being opened to exploration.
Energy Minister Dr Anthony Lynham said the 30,000 square kilometres of new land for exploration was one of the State’s largest ever land releases and includes more than 30 percent earmarked for domestic supply.
“Business and industry – particularly our manufacturers — needs more affordable gas to fuel jobs and there’s one surefire way to do that – produce more gas,” he said.
“This is Queensland continuing to do the heavy lifting on gas for the domestic market for jobs.”
Six successful ventures have won the right to explore a total of 3450 square kilometres – two of them for gas for the domestic market only.
- Comet Ridge – 450 km2 – domestic supply only – south-east of Emerald
- Denison Gas 568 km2 for domestic supply only – south-east of Emerald
- Galilee Energy – 1425 km2 – south of Emerald
- Westside and APLNG 753 km2- east of Taroom
- Santos GLNG – two areas totalling 101 km2 east of Roma
- Real Energy/Strata-X- 153 km2 west of Miles
“These operators now have the opportunity to hunt for gas in proven gas rich Bowen and Surat basins,” Dr Lynham said.
“Queensland is open for business and I encourage these companies to progress the necessary approvals to get the gas and associated jobs flowing.”
The new 30,000 km2 land release will open for bids on November 7.
The land parcels are near Roma, Longreach and Mount Isa across six basins – Bowen, Surat, Galilee, Adavale, Eromanga and Millungera.
“More gas from more fields is the only long-term way to deal with affordable domestic gas supply,” Dr Lynham said.
“This latest land release further opens up under-explored Adavale, Galilee and Millungera basins.
“Currently Queensland supplies about quarter of the east coast gas market and just last month the Energy Users Association of Australia said the Queensland Government’s domestic only policy was – beginning to make a material contribution to domestic gas supply.
Since 2015 the Palaszczuk Government has released more than 39,000 km2 of land for gas exploration, over a fifth of it guaranteeing the gas will be for Australian consumers.
Two projects have signed gas deals with local buyers.
Senex’s Project Atlas has contracts with CSR supporting 200 jobs, with O-I glass and with Orora to supply three manufacturing plants in Queensland.
And the APLNG-Armour Energy gas joint venture had signed gas deals with Orica for supply to their Yarwun explosives plant and packaging manufacturer Orora.
Senex’s and its construction partner in Project Atlas, Jemena, is also building a $140m pipeline and processing facility project that will connect Project Atlas to the Wallumbilla Gas Hub in south-west Queensland.
The new successful tenderers will need to negotiate land access agreements and fulfil any existing environmental and Native Title requirements before the exploration authority is granted and work can begin