Queensland demands gas consultation

The Queensland Government has demanded consultation on Federal plans to create a national gas reservation scheme.

Queensland Energy Minister Dr Anthony Lynham said as the leading state on gas policy and supply for the east coast gas market, the government deserved to be part of any discussions about major market disruptions.

"We are deeply concerned that this meddling, which is not relevant to Queensland, may impact on our multi-billion dollar gas industry that Labor governments have built here from scratch," Dr Lynham said.

"Queensland has long been doing the heavy lifting on gas policy and supply.

"We supply about 25 per cent of the east coast gas market and have been leading policy innovation by setting aside land for gas for domestic buyers, and for manufacturers.

"More gas is the key to meeting demand, and that's what our policies are driving.

"Our domestic supply policy allows for more gas to be brought to market, and more gas from more fields is the only long-term way to deal with supply issue and ultimately with price.

"The LNP Federal Government has never consulted Queensland on its domestic gas security mechanism and we remain in the dark on whatever is planned next."

The Federal Government has announced establishing a national gas reservation scheme .

Since 2015 the Palaszczuk Government has released more than 39,000 km2 of land for gas exploration, over a fifth of it guaranteeing the gas will be for Australian consumers.

Blocks from these releases have been awarded to Senex Energy, Central Petroleum, Armour Energy, Chi Oil and Gas, Santos, Shell and APLNG.

Two projects have signed gas deals with local buyers.

Senex's Project Atlas has contracts with CSR supporting 200 jobs, with O-I glass and with Orora to supply three manufacturing plants in Queensland.

And the APLNG-Armour Energy gas joint venture had signed gas deals with Orica for supply to their Yarwun explosives plant and packaging manufacturer Orora.

Senex's and its construction partner in Project Atlas, Jemena, is also building a $140m pipeline and processing facility project that will connect Project Atlas to the Wallumbilla Gas Hub in south-west Queensland.

Trend petroleum exploration expenditure in Queensland was $59 million for the first quarter of 2019, an increase of 55 per cent compared the same period last year.

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