Surat Basin gas deal another boost to jobs

QUEENSLAND’S booming energy sector gained another entrant yesterday when a Brisbane gas company made a bold move with a potential $1 billion coal seam gas development in the Surat Basin.
Senex Energy has stitched together a funding deal with American company EIG which will give it access to more than $400 million to accelerate the project, near Roma.

It adds to the more than $1 billion in renewable energy projects in the pipeline, including two solar farm investments announced this week for central Queensland.

Millions are already flowing into renewables but the coal seam gas sector has been in the doldrums for several years because of the collapse in global prices.

Senex managing director Ian Davies said the 15 to 20-year project would include about 425 wells and cost about $1 billion. That will add to the more than 6000 existing wells in Queensland.

Over the next five years about $300 million will be needed and in the next year Senex expects to have about 100 workers in the field drilling a planned 40 wells, but “many more’’ workers will be needed over the years.

The project comes at a crucial time for the energy markets with domestic gas prices spiralling because of a shortage caused by the three Gladstone LNG projects soaking up all the available production for their exports.

“The only thing that will help is more volume,’’ Mr Davies said.

“Governments want renewables but they will need complementary gas and NSW and Victoria are effectively closed for business,” he said.

But Santos yesterday sparked a new war with environmentalists when it submitted plans for its controversial Narrabri project in NSW.

The Queensland Government is also trying to find ways to reduce gas costs by releasing land to trial Australia-only gas. Under the scheme, any gas produced on the reserved land would not be allowed to be sold for export.

Queensland Resources Council chief executive Ian Macfarlane said the latest deal showed that Queensland was getting on with business and “propping up’’ its southern neighbours.

“The QRC is pleased that foreign investors continue to have confidence in Queensland projects, despite recent reports that foreign investment was cooling due to the uncertain political climate in Australia,” Mr Macfarlane said.

“This international negative perception is due to political interference in the NSW and Victoria gas exploration sector. This politicisation has completely stalled gas exploration in southern states.

Source: The Courier Mail 2 February 2017

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