26 Jun 2024

Media Release: Oil and gas industry welcomes Queensland gas exploration

Australia’s oil and gas industry welcomes the Queensland Government’s continued recognition of energy security at a time of heightened gas demand to keep Australian households warm and businesses running.

Australian Energy Producers Queensland Director Keld Knudsen said the awarding of tenders for six petroleum and gas exploration areas across the Bowen and Surat basins came at an important time following the Australian Energy Market Operator’s warning of east coast gas supply shortages.

“Queensland understands that exploration is vitally important to uncover the state’s abundant gas supplies that deliver billions of dollars of investment into regions and boost energy security,” he said.

“As southern states feel the consequence of years of poor policies that have impacted on gas developments, Queensland is reaping the benefits of supporting investment in the gas sector.

“This is yet another example of Queensland continuing to do the heavy lifting to keep the lights on for the east coast and ensuring reliable and affordable energy supply.

“Gas-powered generators provide important dispatchable electricity as they can generate at peak periods when renewable generation is low. Gas currently represents the lowest capital cost per megawatt way to provide back-up and peaking power generation.”

Mr Knudsen said the Queensland Government’s support for the gas sector also generates wide-ranging benefits across communities.

“Measures to improve gas supply will further boost the already 30,000 jobs along the supply chain in Queensland, and the billions of dollars spent with thousands of local Queensland suppliers and contractors,” he said.

“It will also keep the $1.4 billion yearly average of royalties flowing to the state budget, helping the state fund critical public services and infrastructure such as its hospital building program, cost of living relief, and youth justice reforms.”

“Australian governments must continue to support the key role gas will play in the energy mix to provide reliable and affordable energy to homes and businesses and drive domestic manufacturing to 2050 and beyond.”

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