QGC announces natural gas tenements development

QGC has announced a two year $1.7billion dollar joint venture development with China National Offshore Oil Corporation and Tokyo Gas on its Charlie natural gas tenements in the Surat Basin.

Located west of Wandoan, the development involves the construction of 300-400 wells, a field compression station, and pipelines and facilities that will connect into an existing gas processing and water infrastructure at Woleebee Creek.

Queensland Resources Council chief executive Michael Roche said the project will take the state’s natural gas industry another step forward.

“Queensland has led the way in developing a world-class natural gas industry and the announcement of another major development is testament to the confidence that proponents have in the industry,” Roche said.

“This is a major investment in the future of the Queensland natural gas sector, which has been a major creator of jobs and a generator of broader economic benefit over the past five to seven years.”

QGC managing director Tony Nunan said the Charlie Project has the potential to create new construction jobs, and provide flow-on economic benefits to surrounding communities.

"The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1,600 construction jobs and business opportunities during the two-year project," Nunan said.

Currently the natural gas sector accounts for seven per cent of the Queensland economy, supplying over 114,000 jobs.

“The benefits of this project will flow far and wide from communities around the project in the Surat Basin to Queenslanders in regions across the state with the royalties paid to the state helping to pay for schools, hospitals and roads potentially from Cape York to Coolangatta,” Roche said.

The project is a continuation of QGC’s tenements in the Surat Basin to support gas production and supply to domestic customers and the two-train Queensland Curtis LNG liquefaction plant.

QGC’s joint venture will enable the Queensland natural gas industry to tap into the expected 160 per cent growth in Asian gas demand out to 2040.

The International Energy Agency's World Energy Outlook released has praised Queensland’s gas industry for its strong performance.

"Overall, the Queensland approach seems to embody many features of regulatory best practice, with cumulative, regional assessments revised regularly, purpose built institutions and a strong focus on water issues."

Earlier this month, Leighton Contractors was appointed to provide QGC’s gas infrastructure.