Santos and Denison secure gas exploration acreage in Queensland

Australian oil and gas producing firms Santos and Denison Gas have secured new gas exploration permits in the proven gas fields of Queensland.

According to Queensland Mines Minister Anthony Lynham, Santos would seek new gas between the area of Chinchilla and Roma, while Denison Gas would start exploring for gas near the Emerald region.

Lynham added: “This is about unlocking more gas for local manufacturing, industrial users, and securing Aussie jobs.”

Denison Gas has signed up to explore for gas under a domestic-only supply condition from 568km² of land south-east of Emerald in the Bowen basin.

Santos secured four new gas exploration permits, with two of the permits for domestic-only supply and the remaining two for supply to both domestic and liquefied natural gas (LNG) markets.

It will explore over 2000km² of highly prospective areas in Surat and Bowen Basins of Queensland.

Santos CEO and managing director Kevin Gallagher said: “This means Santos will be able to get gas to market faster and at a lower cost of supply, which is the best way to put downward pressure on gas price.

“Opening up these opportunities is also creating jobs and investment in Queensland at a time when they are more important than ever.

“Queensland continues to lead the way and do the heavy lifting for the east coast gas market in Australia and, in doing so, Queensland communities like Roma are benefiting with stronger local economies.”

According to the Government of Queensland, the new land release is part of a multi-million-dollar package, including rent and fee waivers, to help maintain Queensland’s portfolio of resources projects.

Recently, Queensland opened 12 parcels of land covering more than 6700km² to tender for gas exploration.