Gas produced in the Surat Basin will be used power one of Queensland’s largest manufacturing companies.
Central Petroleum has been granted an Authority to Prospect, under the condition that gas produced must be sold only to the Australian domestic market.
The company will supply gas to Incitec Pivot Limited, with gas produced used to power the Gibson Island fertilizer plant.
“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,” Minister for Natural Resources, Mines and Energy Anthony Lynham said.
“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.”
Central Petroleum is aiming for production by 2022.
Until then, gas to IPL’s Gibson Island plant will come from their assets in the Northern Territory.
Central Petroleum acting CEO Leon Devaney said the company was pleased to be granted 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.
“We have assembled a highly experienced team at Central that has been deeply involved in the development of the Queensland coal seam gas industry we see today, and we are keen to continue this work together with our partner Incitec Pivot Limited.”