PERTH (miningweekly.com) – The Queensland government has granted ASX-listed Central Petroleum an Authority to Prospect on coal seam gas acreage in the Surat basin, covering some 77 km2.
Central Petroleum was announced as the preferred bidder for the Queensland acreage in March this year, and in June agreed to a 50:50 joint venture with Incitec Pivot (IPL).
Minister for Natural Resources, Mines and Energy Anthony Lynham said on Wednesday that the Authority to Prospect was granted on the condition that the gas, if produced would be sold only to the domestic market.
“Central Petroleum has said it will supply gas to one of Queensland’s largest manufacturers IPL, with gas produced to be used to power the Gibson Island fertilizer plant.
“Securing a reliable, long term supply of gas is a win-win for Central and IPL and will support the ongoing employment of 400 local workers.
“Having met all the regulatory requirements, Central Petroleum has been granted approval to explore for gas just six months after being announced preferred tender under Queensland’s Exploration Land Release Programme. This is yet another example of the government ensuring that Queensland leads the way in gas production,” Lynham said.
“We continue to do the heavy lifting with policies that inspire confidence in the state’s energy reserves, be it gas, coal or renewables.”
Central is aiming for production by 2022.
In the interim, gas to IPL’s Gibson Island plant will come from their assets in the Northern Territory.