Queensland gas powering local industry

QUEENSLAND is strengthening its position as the most reliable supplier of gas on the East Coast, the Queensland Resources Council (QRC) said today.

QRC chief executive Ian Macfarlane welcomed announcements from the Palaszczuk Government of a call for tenders for gas exploration on a block designed specifically to supply the manufacturing industry, and to award Armour Energy and a Shell/Santos Joint Venture (JV) rights to explore for more than 900 square kilometres of land near Surat.

Mr Macfarlane said the Queensland Government understands the only way to drive down gas prices is to increase supply. 

“The economics of supply and demand are simple, if demand for gas is strong you need to increase supply to put downward pressure on prices,” Mr Macfarlane said.

“This is another example of Queensland leading the way when it comes to unlocking new gas reserves, with industry and Government working together for the benefit of all. I congratulate Armour Energy, Shell and Santos for investing in regional Queensland.”

Armour won a tender to explore 457sqkm of land south of Surat while the Shell/Santos JV won rights to explore 393 kilometres of land east of the Surat, both releases have a domestic-only condition with the gas being sold in Australia. 

Meanwhile, Minister Lynham announced a Queensland first, opening tenders for a 18sqkm block of land in the Surat Basin with all gas to be supplied to local manufacturers. 

“If manufacturers are able to reduce their energy bills they can hire more people so this is a good initiative to ensure Queensland’s manufacturing industry remains competitive,” Mr Macfarlane said. 

The Queensland resources sector provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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