Minister for Natural Resources and Mines Dr Anthony Lynham announced the release of the 58 square kilometre of land for exploration with strict Australia-only sale conditions on gas produced last week.
“Gas is a significant transitional energy source as we head to a renewable energy future,”? said Dr Lynham.
“Secure energy supplies is growing as a critical factor when businesses make decisions about when and where they invest, expand and create jobs.”?
“This is a pilot to see what can be achieved and how the market reacts.”?
Dr Lynham said the pilot would have no impact on existing gas producers or contracts in the state’s $70 billion LNG industry.
“The major LNG exporters have extensive gas reserves already in place under production tenure, which has underwritten their investment decision.”?
However, the Australian Petroleum Production and Exploration Association (APPEA) has condemned the move to put restrictions on the release.
“Imposing restrictions is uneccessary and can only discourage development,”? said APPEA Chief Executive Dr Malcolm Roberts.
“Experts such as the Productivity Commission and the Australian Competition and Consumer Commission have warned that governments intervening in the market risk killing the incentive to develop new resources.”?
The Department of Natural Resources and Mines will release the land in south-west Queensland to competitive tender by February.