PERTH (miningweekly.com) – The Queensland government has called on gas producers to bid for the right to extract gas from the coal seam gas- (CSG-) rich Surat basin as part of its Australia-only gas pilot project.

Minister for State Development and Natural Resources and Mines Dr Anthony Lynham on Friday announced the start of a tender process for access to 58 km² of land near Miles in south-west Queensland.

“Gas is critical for job-creating industry expansion and will continue to play a major role as we transition to a renewable-energy future,” he said.

“The parcel of land to be released through this tender process is regarded as highly prospective and located within an area that already has high volumes of gas production. 

“The use of an Australian market supply condition for this innovative project seeks to bolster our gas supply and provide valuable market information for the government for the future management of our gas supplies.”

Lynham noted that, because of the certainty regarding the gas resource available in this area, exploration and prospecting are not required, allowing the successful tenderer to proceed directly to a petroleum lease.

“This will deliver commercial gas production sooner and, ultimately, supply the Australian market faster.”

However, the successful tenderer will be required to complete environmental and other requirements before any tenure can be granted. Lynham said this would include negotiating land access agreements with landowners and native title parties.

“We have been working closely with industry on a range of measures to maximise the supply of gas at affordable prices and my department is currently assessing submissions received during consultation on the Queensland Gas Supply and Demand Action Plan discussion paper released late last year,” Lynham said.

Tenders will close on April 20.