https://www.miningweekly.com

Queensland fires up for gas supply challenge

26th September 2018

By: Creamer Media Reporter

     

Font size: - +

More explorers are on the hunt across Queensland for gas for the hungry Australian market.

Natural Resources, Mines and Energy Minister Dr Anthony Lynham on Tuesday announced that four companies would soon start exploring more than 6 600 km2 for more gas for local use, as well as export dollars.

Lynham said the latest blocks were in key gas-producing regions in the Surat and Bowen basins, as well as an area with significant potential in the Eromanga and Adavale basins.

The four companies have won tenders as part of Queensland’s yearly exploration programme.

“This demonstrates once again that here in Queensland we continue to do the heavy lifting in shoring up Australia’s gas supply,” Lynham said.

“We’re also fulfilling our election commitment to release land for gas exploration with the requirement that any gas produced will only be provided to our domestic market.

“Ultimately, these land releases will deliver more petajoules into pipes, bringing more gas to the east coast and more gas for export.”

One company will be looking for gas only for the Australian market. Chi Oil and Gas will explore 5 266 km2 of land near Quilpie in the Eromanga and Adavale basins.

Chi Oil and Gas joins a growing team seeking or producing Queensland gas for the east coast market. Senex is progressing its Project Atlas in the Surat basin, and Central Petroleum, along with Armour Energy, have authorities to prospect to explore almost 400 km2 for the Australian market.

The other three successful tenderers announced will be able to supply any gas they find to either the Australian or export market.

Armour Energy will explore two areas south of Surat over the Surat and Bowen basins: a 12 km2 area 28 km south east of town and a 30 km2 area 35 km south of town.   

Cypress Petroleum will explore two areas near Tara over the Surat and Bowen basins: a 487 km2 area 30 km west of town and a 559 km2 area 38 km south-west of town.

Bridgeport Energy will explore a 298 km2 area 18 km west of Tara spanning the Surat and Bowen basins.

The companies will need to negotiate land access agreements, fulfil environmental and native title requirements and be granted exploration authorities before exploration can begin.

Queensland Resources Council CEO Ian Macfarlane said that Wednesday’s announcement highlighted the contrast between resources-friendly Queensland and the southern states.

“We back our resources industry in Queensland, and that means we’re in the box seat to supply local gas users and support local jobs,” Macfarlane said.

“This latest release of land from the Queensland government, with the condition that gas developed be used to supply the domestic market, will further entrench Queensland’s role as the state keeping the east coast gas market afloat.

“How much longer will New South Wales and Victoria rely on Queensland to make the investments that keep their industries supplied with gas and keep their economies ticking? Reliable and affordable gas is a must-have for Australian industries, including refining and manufacturing. Given transport costs add at least an extra $2 a gigajoule to the price of gas, it’s time for Australian businesses and manufacturers who are based in either New South Wales or Victoria to consider a move to the Sunshine State.

“With a go-slow on gas development, or in the case of Victoria a blanket ban on some types of gas projects, what the southern states are really saying is they’re not prepared to support local jobs and local industry,” he said in a statement.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION