Dr Anthony Lynham, mines minister, announced on 3 June Australia Pacific LNG (APLNG) and Armour Energy successful bid for 18 square kilometres of land 22 kilometres, in Queensland’s Chinchilla.
The joint venture aims to seek out gas, for Australian manufacturers, in Queensland’s Chinchilla. Under the permit’s conditions, gas can only be sold to Australian manufacturing businesses.
“This is more about petajoules of Queensland gasin pipes and fuelling jobs in manufacturing,” Lynham said.
“While other states close their doors, Queensland continues to rise to the challenge to keep our manufacturers in business.”
The block highly is prospective, as exploration levels in the area are high with production leases surrounding the area. First gas is expected mid-2020.
“The proximity of the block to our existing infrastructure will allow us to bring the gas to the east coast market efficiently and on competitive terms,” said Warwick King, APLNG chief executive officer.
“As an Australian company headquartered in Brisbane, Armour is pleased that the award of this block to the joint venture will contribute to the provision of more affordable energy and feedstock to Australian manufacturing businesses,” said Roger Cressy, Armour Energy CEO.
Queensland has also called for bids to explore a further 3700 square kilometres of land mainly near Springsure in central Queensland. Well over a fifth of this land is only for domestic gas supply.