Queensland company wins out in gas supply tender process

A QUEENSLAND company was announced as the preferred tenderer for a petroleum lease on land in the Surat Basin released to supply the domestic market.

Minister for Natural Resources and Mines Dr Anthony Lynham said he was very pleased to see emerging gas producer Senex secure the rights to supply such a critical resource for our market.

“This tender was a pilot using for the first time provisions of resources legislation to direct gas to the domestic market. We were keen to understand if there was market interest,” Dr Lynham said

“Securing this petroleum lease will open up access to 58sq km of land near Miles.

“The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already underway.

“Around 150 jobs are expected to be created and Senex expects to invest over $200 million on wells and infrastructure over the project’s life.

“Importantly this land is adjacent to existing gas infrastructure which will help to fast-track production from wellhead to market.

“Senex must now negotiate land access agreements and fulfil all existing environmental and Native Title requirements before the Petroleum Lease is granted and work can begin.

“All going well, it is expected that gas from this project will become available to the local market within the next two years.”

Dr Lynham said following the success of this tender process, a second tendering opportunity would shortly be announced for two areas north of Surat in the Bowen and Surat basins.