14 new gas wells in CQ to boost national supply
TWO Central Queensland gas projects near Moura and Rolleston are being primed to boost east coast gas supply through funding from the Australian Government's $26 million Gas Acceleration Program (GAP).
The Greater Meridian Domestic Gas Acceleration Project by Westside Corporation Pty Ltd will receive a $6 million grant towards its $14.3 million project to drill 10 additional single lateral wells.
Located 190km west of Gladstone, near Moura, the GAP funding brings these works forward from 2021, and will deliver to the domestic market an estimated 1.7 petajoules of gas by June 2020, and 12 petajoules over the economic life of the wells.
The other CQ based project by Tri-Star Fairfields to develop four new wells west of Rolleston, Queensland will receive a $6 million grant for a $16.3 million project.
This is estimated to produce 3.9 terajoules per day by 2019.
The wells, adjacent to proven gas fields in the Bowen Basin, are the first stage of a longer term project to develop 500 new wells delivering around 1,719 petajoules over the project life.
Minister for Resources and Northern Australia Matt Canavan said the projects would supply an extra 12.4 petajoules of new gas to the East Coast market by 30 June 2020 and an extra 27.6 petajoules over five years.
Minister Canavan said this extra supply would help safeguard Australia's future gas security.
"Gas is vital to Australia's energy security as a fuel, as a feedstock for industry, and as a source of energy generation," Minister Canavan said.
"We must continue to invest in the gas sector to ensure a secure, reliable and affordable gas supply. Bringing more gas to market will help Australian businesses remain competitive, create more jobs and reduce cost of living pressures on all Australians.
"While Australian Government measures like the Australian Domestic Gas Security Mechanism and the Prime Minister's agreement with LNG exporters in October 2017 have helped to address domestic gas supply in the short term, the only way to provide gas security into the future is by increasing the supply of gas through increased development.
"We can access our plentiful gas resources in a responsible and balanced way, using the best available science.
"I encourage all States and Territories with limitations on gas projects to rethink their blanket bans.
"The GAP is fast tracking projects with the best prospects of bringing significant new gas volumes to target markets by mid-2020."
The other two projects being funded are the Kincora Gas Acceleration Project by Armour Energy in the Surat Basin and Beach Energy Ltd by Adelaide Energy Pty Ltd in the Otway Basin, South Australia.