Ahead of Canberra plans to explore for gas in the Isa Superbasin, a new report shows more gas is needed to drive down prices despite the fact Queensland had the lowest wholesale gas prices in Australia last year.
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The Gas Price Trends Review 2017 released this week shows prices for Queensland industrial customers fell 11 per cent from 2015 to 2017, while prices rose in most other states.
Natural Resources, Mines and Energy Minister Dr Anthony Lynham said the trend was a positive for industrial gas users, including manufacturers, but more supply was needed.
“Queensland has been doing the heavy lifting on boosting gas supply since 2016,” he said.
“Gas is a feedstock as well as an energy supply, and those costs impact on employers’ ability to create jobs.”
Dr Lynham said Jemena’s $800 million Northern Gas Pipeline was bringing Northern Territory gas to Mount Isa, and potentially to the east coast market with plans to extend the pipeline to the Wallumbilla Gas Hub in the future.
Jemena’s $800 million Northern Gas Pipeline is bringing NT gas to Mount Isa
- Dr Anthony Lynham
“Tenders are being assessed for almost 400 square kilometres of highly prospective land in the Surat and Bowen Basin, restricted to supply the Australian market,” he said.
“Senex is already at work preparing to produce gas for the Australian domestic market on the 58 square kilometres of coal seam gas acreage near Miles in the Surat Basin.”
Dr Lynham said they would continue these releases, delivering on their election commitment to release land annually for gas exclusively for the Australian market.
“It’s time for the Turnbull government to take some of the expert advice it’s now had from the Chief Scientist's review and this COAG team.
“Invest in some infrastructure and encourage gas exploration and development.”
However in January the Federal Government issued a statement saying they were opening up the Isa Superbasin for gas exploration.
The North West Star has asked Dr Lynham’s office for comment on this plan.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
