PERTH (miningweekly.com) – The Queensland Resources Council (QRC) has welcomed the release of more than 3 000 km² of land in parts of south-west and central Queensland for gas exploration.

Manufacturing Minister Glenn Butcher said Senex Energy, Comet Ridge, State Gas and Denison Gas had won tenders to explore areas close to their existing infrastructure to get more gas to market quickly. 

Butcher said gas from some of the areas was guaranteed to Australian companies to maintain jobs, including companies like Northern Oil Refinery at Gladstone.

“Queensland has an economic plan for recovery built on its traditional strengths like resources,” he said.

“Queensland’s gas and manufacturing industries support more than 200 000 jobs now. Supporting exploration maintains a pipeline of future resources projects and keeps gas flowing to our manufacturers.

“Any gas from more than 450 km² of this land is guaranteed for the Australian market. That’s gas for feedstock and energy for our manufacturers and their workers.”

QRC CEO Ian Macfarlane said the resources industry had called on the government to release more land for exploration to create jobs, boost exports and drive down energy costs to help stimulate the Queensland economy from the impacts of Covid-19.

“The resources sector has played a critical role in keeping Queenslanders working and earning through Covid-19 and is central to the state’s economic recovery. Allowing industry to responsibly develop gas for both the domestic and export markets will benefit all Queenslanders” Macfarlane said.

“Senex has also announced a domestic gas supply agreement with the Northern Oil Refinery near Gladstone with up to 2.5 PJ of gas which will support 32 jobs directly and hundreds more indirectly,” he added.

The Senex transaction with the Northern Oil Refinery will see gas from Atlas used in oil refining and to advance biofuels production plants near Gladstone.

Under the initial two-and-a-half-year agreement, Senex will supply Northern Oil Refinery with 0.3 PJ of gas a year, with a mechanism to extend the supply for a further five years at 0.35 PJ a year, taking the total contract quantity to 2.5 PJ.

Queensland’s oil and gas industry contributes A$8-billion to the State’s economy, supports more than 37 000 full time jobs and invests A$2.7-billion with local businesses and community organisations.