Tenders open for Australian gas pilot

Published Friday, 10 February, 2017 at 08:00 AM

Minister for State Development and Minister for Natural Resources and Mines
The Honourable Dr Anthony Lynham

Gas producers can now bid for the right to extract gas from Queensland’s CSG-rich Surat Basin to supply to the Australian market as part of the Palaszczuk Government’s Australia-only gas pilot project.

Minister for State Development and Minister for Natural Resources and Mines Dr Anthony Lynham today announced the start of a tender process for access to 58 square kilometres of land near Miles in south-west Queensland.

“Gas is critical for job-creating industry expansion and will continue to play a major role as we transition to a renewable energy future,” Dr Lynham said.

“The parcel of land to be released through this tender process is regarded as highly prospective and located within an area that already has high volumes of gas production.  

“The use of an Australian market supply condition for this innovative project seeks to bolster our gas supply and provide valuable market information for the Government for the future management of our gas supplies.

“The Palaszczuk Government is job-focussed, and that is why we are prepared to try innovative measures like this pilot to generate private sector investment and support job creation.

“Because of the certainty regarding the gas resource available in this area, exploration and prospecting are not required allowing the successful tenderer to proceed directly to a petroleum lease.

“This will deliver commercial gas production sooner and ultimately supply the Australian market faster.

“The successful tenderer will be required to complete environmental and other requirements before any tenure can be granted.”

Dr Lynham said this would include negotiating land access agreements with landowners and native title parties.

“We have been working closely with industry on range of measures to maximise the supply of gas at affordable prices and my department is currently assessing submissions received during consultation on the Queensland Gas Supply and Demand Action Plan discussion paper released late last year,” Dr Lynham said.

Tenders close on 20 April 2017.

Further information about the Australian market gas pilot project is available at www.dnrm.qld.gov.au/resources-tenders

ENDS

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