Photo: Image courtesy of Santos

Queensland government seeks consultation over gas reservation policy

The government of Australia’s Queensland state has demanded consultation regarding the Federal government plants to create a national gas reservation scheme. 

Queensland Energy Minister Anthony Lynham said as the leading state on gas policy and supply for the east coast gas market, the government deserved to be part of any discussions about major market disruptions.

“We are deeply concerned that this meddling, which is not relevant to Queensland, may impact on our multi-billion dollar gas industry,” Lynham said.

“Queensland has long been doing the heavy lifting on gas policy and supply. We supply about 25 per cent of the east coast gas market and have been leading policy innovation by setting aside land for gas for domestic buyers, and for manufacturers,” he said.

Lynhamn added that tore gas is the key to meeting demand, which is the focus of Queensland’s policy allowing for more gas to be brought to the market.

“The LNP Federal Government has never consulted Queensland on its domestic gas security mechanism and we remain in the dark on whatever is planned next,” Lynham noted.

The Federal Government has announced establishing a national gas reservation scheme.

Since 2015 the Queensland 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, with all signing gas deals with local buyers.

Senex’s project Atlas has contracts with CSR, 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 the project Atlas to the Wallumbilla gas hub in south-west Queensland.

Trend petroleum exploration expenditure in Queensland was $59 million for the first quarter of 2019, an increase of 55 per cent compared the same period last year.

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