PERTH (miningweekly.com) – Oil and gas giant Shell’s QGC business, along with its joint venture partners CNOOC and Tokyo Gas, have announced plans to develop the next phase of onshore natural gas in Queensland, to supply domestic and export customers.

Between 2022 and 2024, Shell will progressively drill and connect approximately 145 new gas wells as part of Shell’s QGC business in the Western Downs region of Queensland. 

The wells will connect to existing gas processing plants and will bring approximately 210 PJ of gas to market over the next 15 years.

Shell Australia chairperson Tony Nunan said the project would help boost the regional economy and employment and provide more gas, the cleanest burning hydrocarbon, to domestic and export customers.

“Gas will be crucial to the energy transition, allowing the integration of greater levels of renewable energy here and overseas, and a vital part of Shell’s strategy to provide more and cleaner energy solutions to supply the world’s energy needs.”

The project will further boost Queensland’s regional economy, powering lives and demonstrating Shell’s commitment to bring more gas to market.

Nunan said that Shell’s continued investment reflects its commitment to supplying the domestic market and enhancing Australia’s reputation as a global liquified natural gas supplier.

The Australian Petroleum Production and Exploration Association (Appea) said Shell’s investment would provide more gas to support domestic gas supplies and Queensland’s international markets.

Appea acting Queensland director Matthew Paull said the announcement would not only support jobs and the economy but would boost domestic gas supplies.

“We welcome this move by Shell’s QGC business to back in this new phase. More investment means more supply and more jobs for the economy.”

Paull said the long-term planning showed demand for gas would stretch into coming decades.

“It shows the industry is planning, and investing, to be a critical part of Australia’s energy mix in the decades to come. The industry is strongly committed to net-zero greenhouse gas emissions by 2050 and gas can play a critical role as a cleaner source of energy.”