Brisbane’s Armour Energy has been granted authority to prospect for gas in the world-class Surat Basin, on the strict condition that it only supplies gas for the domestic gas market.
Queensland Mines Minister, Dr Anthony Lynham, said Armour Energy can seek out gas on 318 square kilometres of the Roma Shelf north of Miles and Surat, which means that Armour is one of a select few of domestic-only gas tenure holders in Queensland.
“This will add to the renaissance of this highly prospective area, started when Armour recommissioned the mothballed Kincora Project in September,” Dr Lynham said, “the Roma Shelf is a long-standing petroleum-producing area and it’s very exciting to see the Kincora plant ramping up production.”
The tenure is located in close proximity to Kincora and its infrastructure, which will allow Armour to deliver large amounts of domestic gas to the public at a fast pace.
“With existing production and pipeline infrastructure nearby, any future gas produced can be quickly tapped into the east coast transmission network,” Dr Lynham commented, “that means more gas to Australia’s east coast industry, particularly manufacturers, and to households.”
“In Queensland, we continue to do the heavy lifting on gas, with innovative policy delivering effective incentives for producers,” Dr Lynham said, “I echo the call from the Queensland Resources Council for the Commonwealth to reward Queensland for its commitment to gas development.”
Image courtesy of The Queensland Government
The call Dr Lynham is referring to was made by the Queensland Resources Council (QRC) on 11 September 2018. They have stated that both sides of Federal politics should pledge to reward states, such as Queensland, to develop their gas reserves and help ease pressure on east coast gas supplies.
In the announcement QRC Chief Executive, Ian Macfarlane, said that the development of the LNG industry in Queensland has generated $63 billion of investment, 30,000 construction jobs, 12,000 ongoing jobs and a driving force behind Queensland’s record exports.
“The industry has grown and been sustained through bipartisan support in Queensland,” Mr Macfarlane said, “perhaps both sides of politics should consider rewarding Queensland for its commitment to being part of the solution to gas supply pressures for eastern Australia – and the reward for Queensland should be at the expense of those recalcitrant southern States.”
“No Federal Government can force these States to act, but they can be encouraged – for long enough they have been offered the carrot, perhaps now they need the stick,” Mr Macfarlane concluded.
