Local Queensland jobs and the economy are set to expect a boost from a Santos GLNG investment of $360 million to drill and connect more than 130 new production wells in the Fairview gas field.
Work will begin in June 2022, with first gas anticipated in October the same year.
At peak production, the project is anticipated to produce around 78 terajoules per day. This is the equivalent to approximately 25 per cent of domestic demand in QLD.
Santos managing director and CEO, Kevin Gallagher, said that while the gas will feed the GLNG plant in Gladstone and in export revenue to the nation, investments such as these free up other supply sources for the domestic gas market.
“Queensland’s coal seam gas would never have been developed with access to huge international markets and the massive capital investment of our joint venture partners and customers in Asia,” said Gallagher.
“Without that investment, there would be less gas supply in the domestic market today.”
Since the GLNG project was sanctioned just over a decade ago, Santos and its GLNG partners have contributed nearly $300 million in royalties to state revenues.
“Not only will this new investment provide ongoing employment for 160 drilling and construction contractors over the next two and a half years, it will deliver an additional $91.5 million in royalties for QLD,” Gallagher said.
“Importantly, local communities and businesses will benefit with over $100 million to be spent on local goods and services to support the project.”
The investment is set to see an extra $600,000 go to the Maranoa and Banana Regional Councils for road upgrades and maintenance during the lifespan of the project.
“This incremental investment in Fairview fits with our low cost, disciplined operating model and builds on Santos’ commitment to Queensland and the Maranoa and Banana Regions,” said Gallagher.
The Fairview gas field is located north of Roma, QLD.