QRC CEO Ian Macfarlane
PERTH (miningweekly.com) – Oil and gas major Santos and its Gladstone liquefied natural gas (GLNG) partners have been granted the rights to explore for gas near Injune, in Queensland.
Queensland Mines Minister Dr Anthony Lynham said Santos and its joint venture (JV) partners Total, Petronas, Kogas and Australia Pacific Liquefied Natural Gas (APLNG) had been awarded exploration rights to an 86 km2 area about 65 km north of Injune in the Bowen basin.
“This area holds significant gas resources, which will further add to the gas being produced by workers here in Queensland and made available for domestic use and export markets,” Lynham said.
Santos executive VP for exploration and new developments, Bill Ovenden, said the tender was ideally located.
“Being adjacent to the Santos-planned Arcadia project means the company will be able to leverage existing infrastructure, reduce development costs and produce more gas,” Ovenden said.
Santos will need to negotiate land access agreements and fulfill any existing environmental and native title requirements before the exploration authority is granted and work can begin.
“We are continuing to drive gas exploration and production through the release of land under our annual exploration programme, which provides planning certainty for explorers and early notice for landholders and local communities,” Lynham said.
“Tenders are currently open for gas companies to explore for gas in ten areas in the Bowen, Surat, Adavale and Eromanga basins.
“That includes more than 6 000 km2 for gas that can only be sold in Australia, and not exported.”
Meanwhile, APLNG recently gained a 95 km2 petroleum lease to in the Surat basin.
“This area has the potential to produce 251-billion cubic feet of gas over the next 30 years,” Lynham said.
“APLNG will commence production on the site within the next three years using their existing Combabula gas processing facilities.”
The Queensland Resources Council has welcomed the joint bid by Santos and APLNG to explore for new natural gas resources in the Bowen basin, with CEO Ian Macfarlane noting that it was a good example of the state government understanding the need to responsibly explore for new gas reserves.
"Having this new project next door to existing gas operations will lower the cost of production and get gas flowing more quickly,” Lynham said, adding that the 86 km2 of land north of Injune held significant gas reserves, which would be made available for domestic use and export markets.