Mar 29, 2018

Boost for Queensland gas projects

Boost for Queensland gas projects

Three Queensland projects have won a share of funding under the Australian Government’s $26 million Gas Acceleration Program (GAP).

The Kincora Gas Acceleration Project, the Greater Meridian Domestic Gas Acceleration Project and a project at Rolleston in central Queensland have each won $6 million, along with a Beach Energy project in South Australia.

Resources Minister Matt Canavan said the projects would supply an extra 12.4 petajoules of new gas to the East Coast market by 30 June 2020 and an extra 27.6 petajoules over five years.

“While Australian Government measures like the Australian Domestic Gas Security Mechanism and the Prime Minister’s agreement with LNG exporters in October 2017 have helped to address domestic gas supply in the short term, the only way to provide gas security into the future is by increasing the supply of gas through increased development,” he said.

The GAP was fast-tracking projects with the best prospects of bringing significant new gas volumes to target markets by mid-2020, he said.

The funded projects include:

  • The Kincora Gas Acceleration Project—Armour Energy will receive a $6 million grant towards a $16.1 million project to drill three additional production wells at the Kincora Gas Plant in Queensland, delivering an estimated 6.9 petajoules of gas by June 2020 into the Roma Brisbane Pipeline. The project is expected to deliver an additional 14 petajoules of gas over the life of the accelerated wells.
  • The Greater Meridian Domestic Gas Acceleration Project—Westside Corporation will receive a $6 million grant towards its $14.3 million project to drill 10 additional single lateral wells in Queensland’s Bowen Basin. The GAP funding brings these works forward from 2021, and will deliver to the domestic market an estimated 1.7 petajoules of gas by June 2020, and 12 petajoules over the economic life of the wells.
  • A $16.3 million project by Tri-Star Fairfields to develop four new wells west of Rolleston in the Bowen Basin will receive a $6 million grant. Expected to produce an estimated 3.9 terajoules per day by 2019, these wells are the first stage of a longer term project to develop 500 new wells delivering around 1,719 petajoules over the project life.
  • A  $22.6 million project by Beach Energy to construct a new Katnook Gas Processing Facility, with the potential to process up to 10 terajoule per day of gas from a recent discovery well in the Otway Basin, South Australia.

For more information, visit www.business.gov.au/gap

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