The Palaszczuk Government welcomes the Santos and GLNG joint venture announcement that it will be releasing 30 petajoules of gas over two years for the domestic market.
Natural Resources and Mines Minister Dr Anthony Lynham said the government recognised the long history of Santos in pioneering gas supply in Australia and Queensland and welcomed the latest action.
“I look forward to similar announcement from other LNG producers,” Dr Lynham said.
Santos and its GLNG joint venture partners have agreed to supply 30 petajoules (PJ) of gas to the east coast domestic market over 2018 and 2019.
The gas, which would otherwise have been exported as LNG, is being sold to east coast customers including power companies.
Santos’ announcement follows the Palaszczuk Government’s announcements this week that Queensland company Senex has been awarded 58 square kilometres of highly prospective acreage in the Surat Basin in the state’s south-west. Gas produced from this acreage can only be supplied to the Australian market.
Tenders also opened on 6 September for almost 400 square kilometres of highly prospective land in the Surat and Bowen Basin, also restricted to supply the Australian market.
Dr Lynham said the Santos and GLNG initiative highlighted the shortcomings of the Turnbull Government’s gas export restriction policy which focuses only on the short term and the redistribution of gas.
“The problem of supply and therefore price of gas depends on ensuring more gas is available in the market in the long term,” Dr Lynham said.
“Queensland has been doing the heavy lifting in the gas industry and we want to see the Commonwealth investing in new gas infrastructure in Queensland to grow supply.”