The Queensland Government has given the ‘green light’ to a new Surat and Bowen Basin project which will provide more gas for the domestic market.
Santos has been granted an Authority to Prospect (ATP) over a 764 square kilometre parcel of land 65 kilometres east of Surat in the gas-rich Bowen and Surat Basins.
Resources Minister Scott Stewart said strict conditions have been imposed that any gas produced from the venture heads straight to the Australian market.
“The granting of this ATP means Santos has fulfilled all necessary land access agreements, environmental and Native Title requirements and can soon get down to work exploring for gas.”
Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher, said the company is continuing to invest in Queensland in 2021, with around A$800 million being invested to drill another 180 wells and deliver more gas supply.
“This will support the jobs of the nearly 1200 Queensland workers in our operations and provide more opportunities for small and family businesses in regional Queensland.”
“Importantly, Queensland and east coast customers pay less for gas than Asian customers and they will continue to enjoy a competitive gas price advantage as we bring more low-cost supply to market from this new ATP and our other Queensland developments,” he noted.
Santos and its GLNG partners have drilled around 700 wells and invested A$2 billion in gas field developments in Queensland over the last two years. Since 2015 the Queensland Government has released more than 80,000 square kilometres of land for gas exploration with almost a quarter of it guaranteed for the Australian domestic market.