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New petroleum lease awarded

Queensland Minister for Natural Resources and Mines, Dr Anthony Lynham, has announced that local company Senex Energy has secured the rights to develop a new petroleum lease in the Surat Basin.

This is the latest in a string of new Queensland industry projects to supply domestic customers on the east coast.

Dr Lynham said he was very pleased to see emerging gas producer Senex secure the rights to supply such a critical resource for the market.

“The Palaszczuk Government is leading the nation with practical measures to increase domestic gas supplies and support local jobs,” Dr Lynham said.

“This tender was a pilot, using for the first time provisions of resources legislation to direct gas to the domestic market. We were keen to understand if there was market interest.

“Securing this Petroleum Lease will open up access to 58km squared of land near Miles. The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already underway.

“Around 150 jobs are expected to be created and Senex expects to invest over $200 million on wells and infrastructure over the project’s life.”

APPEA Queensland Director, Rhys Turner, said this was further evidence that Queensland is continuing to do the heavy lifting in bringing more gas to market.

“The State Government recognises that the only way to put downward pressure on prices is to increase supply,” Mr Turner said.

In 2015-16 alone, Queensland’s gas industry directly and indirectly supported almost 40,000 jobs, and provided more than $12 billion in total value-added activities in the state through direct, indirect and consumption-based activities.

“If the Government is prepared to keep this momentum going, the industry stands ready to invest, bring on even more gas, and create more jobs,” Mr Turner said.

“We know that increasing gas supply will put downward pressure on energy prices and that continued investment in production requires a steady and stable approach from government.

“That is why the industry looks forward to the forthcoming release of the Queensland Gas Action Plan, which is expected to detail new measures to increase supply, economic growth, and put downward pressure on energy prices.”

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