Domestic gas supply is set for a boost with Arrow Energy’s announcement of their sales agreement with Shell’s QCLNG for Queensland gas.
Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said Arrow will unlock significant gas reserves in the Surat Basin which will increase supply into the domestic market.
“Today’s announcement brings the scale and infrastructure of LNG production to bear on Arrow’s proven gas reserves. That’s the only way to get this gas out of the ground at an affordable price”, said Mr Macfarlane
“More gas being produced is good news for all gas customers both domestic and export.
“The QRC congratulates Arrow and Shell’s QCLNG on this milestone agreement which again demonstrates that Queensland is leading the way when it comes to working to address the problem of the gas shortage.”
The 27 year-year agreement will see Arrow use existing gas pipelines and related infrastructure. The project will create around 1000 new jobs and will benefit every Queenslander through royalties.
“These two companies are here for the long-haul and this agreement will deliver a whole generation of prosperity to the Darling Downs. Long term jobs allow training and supply opportunities to deliver enduring benefits to local communities such as Wandoan, Miles, Chinchilla and Dalby,” Mr Macfarlane said.
“We only hope that the other states follow Queensland’s lead and open up gas reserves to help fix the energy crisis households and businesses, especially manufacturers, along the eastern seaboard are facing.
“This one agreement alone will deliver enough extra gas to more than power Queensland’s entire industrial demand every year out to 2047.”
QRC’s current data shows that in 2016-17, the state’s gas industry contributed $8.9 billion to the state’s economy and supported 42,938 full-time Queensland jobs.