The Queensland government has announced that joint venture partners Australian Pacific LNG and Armour Energy have been granted a petroleum lease near Chinchilla in south-west Queensland, with the gas produced to be directed to local manufacturing operations.
State mines minister Anthony Lyndham said the lease would help boost east coast gas supplies and help secure approximately 650 jobs across manufacturers Orica, Orora and Incitec Pivot’s plants in Queensland.
“This is the first block in Australia to deliver gas solely for use in local manufacturing,” said Lyndham.
“Here’s Queensland once again doing the heavy lifting on gas policy and supply.”
Australian Pacific LNG and Armour Energy will develop up to 103 petajoules of gas over 30 years from a block 22 kilometres south-west of Chinchilla.
Australia Pacific LNG’s Warwick King said the initiative would facilitate additional supply to the domestic gas market.
“Australia Pacific LNG has a strong commitment to supplying domestic customers and supporting Australian jobs, while continuing to meet our export commitments,” King said.
King indicated that development activity would commence within 12 months and that the first gas would be produced from the block next year.
The Queensland government has released more than 70,000 square kilometres of land for gas exploration since 2015, with over a quarter guaranteed for the Australian domestic market. Under the 2020 Queensland Exploration Program, a further 6,804 square kilometres of land will be made available for petroleum and gas exploration in the Surat and Bowen basins.
Minister Lynham said that boosting the domestic local gas supply would secure local businesses and local jobs.
“It’s simple – the only way to boost gas supply and to stabilise prices is to find more gas and get it into pipelines to market,” he said.