APLNG, Armour JV Gets Queensland Licence
A joint venture comprising Australia Pacific LNG (APLNG) and Armour Energy has been awarded a petroleum production licence 1084 (PL1084) by Queensland’s department of natural resources, mines and energy, Armour said March 11 in a statement.
“PL1084 has been granted with the specific conditions that the gas produced from the production licence is to be sold exclusively for local manufacturing,” Armour said.
The joint venture plans to develop up to 103 petajoules of gas over 30 years, with first gas expected next year. APLNG, with a 90% interest in the joint venture, is the operator. However, both parties are able to independently market their proportion of produced gas directly to local manufacturing firms. APLNG is a joint venture comprising ConocoPhillips Australia (37.5%), Origin Energy (37.5%) and Sinopec (25%).
“It is anticipated that activity would start on well and gathering infrastructure this year, with first gas from this block expected to be delivered in 2021 and Armour looks forward to supplying the gas to local manufacturers as soon as possible,” the company said.
PL1084 is an 18 km2 coalbed methane exploration tenure located 22 km southâwest of Chinchilla and adjoins APLNG’s Talinga project. The block was part of the first national tender where gas has been designated to be supplied exclusively to Australian domestic manufacturers, an initiative by the Queensland government.
The Queensland Resources Council (QRC) has welcomed the granting of PL1084 to APLNG and Armour Energy. “Queensland has worked hard to become the east coast’s most reliable producer of gas, but that advantage will be eroded without continued planning and investment in new exploration and new projects,” QRC CEO Ian Macfarlane said.
He said Queensland must ensure the framework is right for new opportunities for well-regulated gas development in the Lake Eyre Basin, which will benefit local communities and create local jobs.
“Without proper planning, Queensland will throw away its advantage as an east coast gas powerhouse," Macfarlane said.