Surat gas set to power large company

GAS from the Surat Basin will power one of Queensland’s largest manufacturing companies, supporting 400 jobs and boosting the state’s domestic gas security.

Minister for Natural Resources, Mines and Energy Anthony Lynham announced on Friday Central Petroleum had been granted an Authority to Prospect – a condition being that gas – if produced – be sold only to the domestic market.

“Central Petroleum has said it will supply gas to one of Queensland’s largest manufacturers Incitec Pivot Limited with gas produced to be used to power the Gibson Island fertilizer plant,” Dr Lynham said.

“Securing a reliable, long term supply of gas is a win-win for Central and IPL and will support the ongoing employment of 400 local workers.

“Having met all the regulatory requirements, Central Petroleum has been granted approval to explore for gas just six months after being announced preferred tender under Queensland’s Exploration Land Release Program.”

Dr Lynham said this was “yet another example of the Palaszczuk Government ensuring that Queensland leads the way in gas production”.

“We continue to do the heavy lifting with policies that inspire confidence in the state’s energy reserves, be it gas, coal or renewables,” Dr Lynham said.

Central is aiming for production by 2022. In the interim, gas to IPL’s Gibson Island plant will come from their assets in the Northern Territory.

Central Petroleum Limited acting CEO Leon Devaney said the company was pleased to learn of the grant of the prospective Queensland Surat Basin coal seam gas acreage.

“We look forward to working together with all stakeholders to responsibly develop a successful project that provides much needed gas into the east coast market and contributes to preserving the Queensland manufacturing industry,” Mr Devaney said.