First gas flows to manufactuers will fuel jobs

AUSTRALIA’S first gas directed for fuelling Aussie manufacturing jobs will be flowing in Queensland by 2021.

Mines Minister Dr Anthony Lynham has announced another national first, with joint venture partners Australian Pacific LNG and Armour Energy granted a petroleum lease near Chinchilla in southwest Queensland.

“This will help boost east coast gas supplies, and help secure around 650 jobs across manufacturers Orica, Orora and Incitec Pivot’s plants in Queensland,” Dr Lynham said.

“This is the first block in Australia to deliver gas solely for use in local manufacturing.

“Here’s Queensland once again doing the heavy lifting on gas policy and supply.”

The lease granting will see joint venture partners Australian Pacific LNG and Armour Energy develop up to 103 petajoules of gas over 30 years from a block 22 kilometres southwest of Chinchilla.

APLNG has named the tenement – Murrungama – to respect and acknowledge the local traditional owners in the region around the headwaters of the Condamine River, north to Charleys Creek and south of Jandowae.

It’s also the name of the indigenous language of the Barunggam people in the region.

Dr Lynham said the production lease came less than eight months after exploration rights were granted, and would secure a ready supply of gas to power production and support existing jobs.

APLNG’s Warwick King congratulated the Queensland government for developing this initiative and facilitating additional supply to the domestic gas market.

“Australia Pacific LNG has a strong commitment to supplying domestic customers and supporting Australian jobs, while continuing to meet our export commitments,” Mr King said.

He said development activity would begin within 12 months, with first gas produced for Australian manufacturers from the block next year.