More petajoules in the pipes for Queensland

The Palaszczuk Government has welcomed Australia Pacific LNG’s latest domestic gas supply contract as further evidence of the state’s front runner status on gas supply and policy.

“Only one state is working hard to get more petajoules in pipes, and that’s Queensland,’’ Mines Minister Dr Anthony Lynham said.

“APLNG’s sales contract to supply Origin is yet another example of a Queensland project providing essential gas for a domestic buyer, supporting jobs in Queensland.’’

APLNG has announced it will supply an additional 61 petajoules (PJ) of natural gas to the Australian domestic market after reaching a new gas sales agreement with Origin Energy for 2020 and 2021.

Earlier this month the Energy Users Association of Australia (EUAA) stated that the Palaszczuk Government’s domestic supply initiative was “beginning to make a material contribution to domestic gas supply.”

“Industry is taking up the opportunity our government is offering to seek out and produce more gas for the domestic market,’’ Dr Lynham said.

“Estimated trend petroleum exploration expenditure in Queensland was $92.5 million for the first half of 2019 - an increase of 15 per cent compared to the same period last year.

“It’s investment that demonstrates that the right policy settings work.

“The Morrison Government’s regressive gas reservation plans will be a wet blanket on investment, just like their big stick divestment legislation.’’

Queensland already supplies about 25 per of the east coast gas market and set aside land for gas for domestic buyers, and for manufacturers.

“More gas is the key to meeting demand and that’s what our policies are driving,’’ Dr Lynham said.

Since 2015 the Palaszczuk Government has released more than 39,000 km2 of land for gas exploration, over a fifth of it guaranteeing the gas will be for Australian consumers.

Blocks from these releases have been awarded to Senex Energy, Central Petroleum, Armour Energy, Chi Oil and Gas, Santos, Shell and APLNG.

Two projects have signed gas deals with local buyers.

Senex’s Project Atlas has contracts with CSR supporting 200 jobs, with O-I glass and with Orora to supply three manufacturing plants in Queensland.

And the APLNG-Armour Energy gas joint venture had signed gas deals with Orica for supply to their Yarwun explosives plant and packaging manufacturer Orora.

Senex’s and its construction partner in Project Atlas, Jemena, is also building a $140m pipeline and processing facility project that will connect Project Atlas to the Wallumbilla Gas Hub in south-west Queensland.

Blocks from these releases have been awarded to Senex Energy, Central Petroleum, Armour Energy, Chi Oil and Gas, Santos, Shell and APLNG.

Two projects have signed gas deals with local buyers.

Senex’s Project Atlas has contracts with CSR supporting 200 jobs, with O-I glass and with Orora to supply three manufacturing plants in Queensland.

And the APLNG-Armour Energy gas joint venture had signed gas deals with Orica for supply to their Yarwun explosives plant and packaging manufacturer Orora.

Senex’s and its construction partner in Project Atlas, Jemena, is also building a $140m pipeline and processing facility project that will connect Project Atlas to the Wallumbilla Gas Hub in south-west Queensland.

Media enquiries: David Potter 0428 411 617