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APPEA: QLD setting gas example

Earlier this month, Senex Energy announced a domestic gas sales agreement with manufacturer CSR Limited, marking the first contract deal to be made with gas from the in-development Project Atlas in Queensland’s Surat Basin.

Speaking after the deal was made public, APPEA Chief Executive Andrew McConville said gas exploration in Queensland was helping to prop up national supplies.

“Queensland’s open for business attitude is delivering for regional communities which are benefiting from a diversified economy and low unemployment rates, and is helping homes and businesses right around eastern Australia,” he said.

“Natural gas is an essential feedstock for many Australian manufacturers. Over 200,000 people work in manufacturing jobs that rely heavily on gas.

“There is no substitute for natural gas in many manufacturing processes.”

Wholesale domestic gas prices have continued to trend upwards over the past few years, with the Australian Competition and Consumer Commission consistently arguing that the way to lower prices is to increase gas exploration and develop proved and probable reserves.

Bans on fracking and restrictions on other onshore gas exploration remain in Victoria and New South Wales, although earlier this month it was reported the Victorian Government will investigate the gas potential of two onshore basins and consider lifting the gas moratorium next year.

Mr McConville said more gas supply was the best way to meet demand and avoid shortages.

“Restrictions on supply in southern states are starting to bite, but common sense tells us the only way to meet ongoing demand is more supply,” he said.

“Queensland is to be congratulated for continuing to develop its natural gas resources. We continue to encourage other east coast states to follow Queensland’s lead.

“Making this happen should be the focus of government, industry and all Australian homes and businesses that rely on sustainable gas supply.”

For more information visit the APPEA website.

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