Mar 01, 2018

Domestic gas tenders awarded, more land released

Domestic gas tenders awarded, more land released

Central Petroleum and Armour Energy have won tenders to develop 400ha north of Miles and Surat for more gas to feed the domestic east coast market.

Speaking at the Australian Domestic Gas Outlook 2018 conference in Sydney, Queensland Natural Resources, Mines and Energy Minister Dr Anthony Lynham said the government was meeting its recent election commitment to release land for domestic-only  production by releasing a further 6000sq km-plus for exploration.

Today’s release comes just five months after the first release of land for domestic supply only, with the first tender going to Senex Energy.

Central Petroleum has now been awarded exploration permits for 77sq km in the Surat Basin, 28km north-west of Miles, while Armour Energy has been awarded permits to explore a 318sq km area 17km north of Surat.

Armour Energy chief executive officer Roger Cressey said the area would add to the company’s existing portfolio in the Roma Shelf. 

“Armour has recently restarted production from its South Western Queensland Kincora Gas Project and we are confident that this new acreage will provide further resources for long-term gas production,” Mr Cressey said.

“Additionally, the close proximity of this new tenement to our Kincora gas plant means gas resources can be easily connected, processed and delivered to market.

“Whilst Armour Energy it is still in its early days in terms of gas production, we are contributing to the local region as well as the east coast gas market as a steady and growing supplier.”

Today’s release of additional land for petroleum and gas exploration includes another 6000 square kilometres for domestic production as well and other 111,000 square kilometres without any market condition.

“These tenements will give junior and mid-tier producers a further gateway into Queensland’s diverse exploration industry,” Dr Lynham said.

Dr Lynham told the conference that it was not reasonable for other states to issue moratoriums on extracting their own gas when they are happy to import it from Queensland.

“These parcels of land will continue to help in meeting east coast gas supply, they are not a silver bullet.

“I see no reason why other mainland states cannot follow our lead to help secure a sustainable gas industry, including a stable domestic supply.”

Central Petroleum and Armour Energy must now negotiate land access agreements and fulfil all existing environmental and Native Title requirements before the Petroleum Lease is granted and work can begin.

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