South-West Continues to Draw Gas Investment

More gas development looms for the south-west, with Armour Energy and a Shell/Santos joint venture winning rights to explore more than 900 square kilometres of land near Surat.

Armour Energy
Mines Minister Dr Anthony Lynham says Armour had won a tender to explore 457 square kilometres of land 10 kilometre south of Surat, and in a joint venture agreement, Santos and Shell had won rights to explore a 393 square kilometre parcel of land 19km east of Surat.

Before exploration can begin, successful tendering companies will need to fulfil native title and environmental requirements and negotiate land access agreements.

Any gas produced on these latest blocks can only be sold in Australia, a Queensland innovation to deal with east coast gas shortages and high prices.

Dr Lynham also announced another Australian-first for gas today: a highly prospective 22 km block south west of Chinchilla will go to tender, with any gas only available to Australian manufacturers.

“We know an industry affected by the nation’s domestic gas shortage has been manufacturing – an industry which has been crying out for a stable, reliable gas supply.”

“Once again, Queensland is doing the heavy lifting on gas policy stepping up to provide a boost to our manufacturing industry by supplying gas they need.”

Last month, Senex announced go-ahead for its Project Atlas in the Surat Basin on the first 58 km2 release of land the Queensland Government granted for domestic-only gas production in March 2018.