Queensland has awarded new tenders for gas exploration across six areas in the Bowen and Surat Basins, reinforcing its commitment to supporting the east coast domestic gas market.
The move comes as part of the Queensland Exploration Program, with one tender specifically designated for domestic gas supplies.
Since 2017, Queensland has released over 20,000 square kilometres of land exclusively for Australian domestic supply.
This latest initiative builds on the state’s efforts to address gas supply concerns, including the recent allocation of funding from the $21 million Frontier Gas Grants program to accelerate the development of new gas reserves.
Resources and Critical Minerals Minister Scott Stewart emphasised Queensland’s role in meeting east coast gas demands: “Queensland continues to do the heavy lifting when it comes to the east coast market because we know additional supply is key to ensuring its reliability.
“In the 2022-23 financial year, more than 27 petajoules of gas flowed from Queensland to the southern states, enough to power 520,000 homes.”
The announcement comes at a critical time, as the Australian Energy Market Operator has recently warned of immediate gas supply risks across southeastern Australia.
The operator issued a gas supply risk warning for the country’s east coast on June 19, following inventory declines at the Iona gas storage site in Victoria and disruptions at the Longford gas plant.
Industry representatives have welcomed the new tenders. Andrew Hackwood, Tri-Star Group Country Manager Australia, stated: “Tri-Star Group plans to rapidly progress exploration on ATP 2076 (Application), leveraging our extensive experience in frontier exploration including coal seam gas.”
Comet Ridge Managing Director Tor McCaul also expressed support for the initiative: “Natural gas is critically important for both keeping the lights on and manufacturing thousands of key products. The Mahalo Hub gas will contribute to both of those outcomes in eastern Australia.”
While the Queensland government’s efforts aim to address domestic gas supply concerns, it’s worth noting that only one of the six new exploration areas is specifically earmarked for domestic use.
This comes amid ongoing debates about gas exports and their impact on domestic supply and pricing.
As Queensland continues to play a crucial role in supporting the east coast gas market, these new exploration tenders represent another step in the state’s strategy to maintain a reliable gas supply for Australian businesses and communities.