Aussie oil, gas industry welcomes Queensland gas exploration
Australia’s oil and gas industry on June 26 welcomed the Queensland government’s recent decision to award tenders for six petroleum and gas exploration areas across the Bowen and Surat basins.
Australian Energy Producers Queensland director Keld Knudsen stated that the awarding of tenders comes at a critical time, following the Australian Energy Market Operator’s warning of east coast gas supply shortages. Denison Gas has secured three exploration areas, while Comet Ridge, Elixir Energy, and Tri-Star Stonecroft have been awarded one each.
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“Queensland understands that exploration is vitally important to uncover the state’s abundant gas supplies that deliver billions of dollars of investment into regions and boost energy security,” he said. “As southern states feel the consequence of years of poor policies that have impacted gas developments, Queensland is reaping the benefits of supporting investment in the gas sector.”
“This is yet another example of Queensland continuing to do the heavy lifting to keep the lights on for the east coast and ensuring reliable and affordable energy supply,” he added.
Knudsen remarked that gas-powered generators provide important dispatchable electricity, as they can generate power during peak periods when renewable generation is low. “Gas currently represents the lowest capital cost per megawatt for providing backup and peaking power generation,” he said.
Knudsen also highlighted the broader benefits of the Queensland government’s support for the gas sector, noting, “Measures to improve gas supply will further boost the already 30,000 jobs along the supply chain in Queensland, and the billions of dollars spent with thousands of local Queensland suppliers and contractors.”
Queensland has three major LNG export projects: Origin-operated Australia Pacific LNG, Santos's Gladstone LNG, and Shell's Queensland Curtis LNG. Exports from these three projects totalled 1.89mn tonnes in May, down 1.56% year/year, according to data released by Gladstone Port Corp. on June 6.