Tenders for a new gas pilot project are now open, with gas producers now able to bid for the right to extract gas from the Surat Basin in Queensland to supply to Australia’s domestic market.
Queensland Minister for State Development and Minister for Natural Resources and Mines, Dr Anthony Lynham, announced the tender to access 58km2 of land near Miles in south-west Queensland which has strict Australia-only sale conditions on the gas produced.
“Gas is critical for job-creating industry expansion and will continue to play a major role as we transition to a renewable energy future,” Dr Lynham said.
“The parcel of land to be released through this tender process is regarded as highly prospective and located within an area that already has high volumes of gas production.
“The use of an Australian market supply condition for this innovative project seeks to bolster our gas supply and provide valuable market information for the Government for the future management of our gas supplies.
“The Palaszczuk Government is job-focussed, and that is why we are prepared to try innovative measures like this pilot to generate private sector investment and support job creation.”
Dr Lynham said due to the certainty regarding the gas resource available in the area, exploration and prospecting are not required which allows the successful tenderer to proceed directly to a petroleum lease.
“This will deliver commercial gas production sooner and ultimately supply the Australian market faster,” Dr Lynham said.
“The successful tenderer will be required to complete environmental and other requirements before any tenure can be granted.”
Dr Lynham said this would include negotiating land access agreements with landowners and native title parties.
“We have been working closely with industry on range of measures to maximise the supply of gas at affordable prices and my department is currently assessing submissions received during consultation on the Queensland Gas Supply and Demand Action Plan discussion paper released late last year,” Dr Lynham said.
Submissions to tender close 20 April 2017.