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New gas permits for Queensland – only one for domestic industry

Manufacturing News

The Queensland government has awarded tenders for six petroleum and gas exploration areas across Bowen and Surat basins.

However, despite continuing shortages of gas and price escalations faced by industry, only one is earmarked for domestic gas supply.

Gas exports have been under heavy attack in recent months with revelations by the Australia Institute that 56 percent of gas exported from Australia attracts zero royalty payments, effectively giving a public resource to multinational gas corporations for free.

According to the Australia Institute: “Over the last four years, multinational companies made $149 billion exporting gas they got for free. If royalties had been charged on this gas, at least $13.3 billion in revenue could have been raised and used to increase living standards of Australians by funding schools, hospitals, renewable energy, and other needed public infrastructure.”

With three LNG export terminals in Gladstone, Queensland, the state is more than anywhere responsible for shortages facing east coast customers.

Earlier this month the federal government secured ‘more gas at reasonable prices’ to be made available for Australia’s east coast gas users through a new supply deal with Walloons, part of Shell, according to the government.

However at the time Canberra conceded that this would not fix east coast gas shortages, just put off the supply crunch for a short time.

According to a statement: “AEMO confirmed the legally enforceable supply commitments have pushed back projected shortfalls by two years, to 2028.”

However the Queensland government put a positive spin on the latest news.

In the state’s statement it said: “One of the tenders awarded will help keep more gas on Australian shores to benefit local businesses and communities, subject to the Australian Market Supply Condition.”

Queensland Resources and Critical Minerals Minister Scott Stewart said: “Queensland continues to do the heavy lifting when it comes to the east coast market because we know additional supply is key to ensuring its reliability.

“…In the 2022-23 financial year more than 27 petajoules of gas flowed from Queensland to the southern states, enough to power 520,000 homes.

“Awarding these tenders demonstrates how Queensland is continuing to lead the nation when it comes to gas policy and doing the heavy lifting to meet domestic demands.”

Further reading:
More gas available for customers, but have manufacturers noticed?

Picture: Scott Stewart

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