Improved gas supply security and approximately 1000 new jobs will be created in Queensland thanks to a new deal announced today.
Minister for Resources and Northern Australia, Matt Canavan, welcomed the agreement between Arrow Energy and Queensland Curtis LNG (QCLNG) to produce more gas in Queensland.
“The agreement is evidence that Prime Minister Malcolm Turnbull’s deal signed on 3 October 2017 with the three East Coast LNG exporters is working as intended, and more gas supply is being made available to domestic consumers,” Minister Canavan said.
“Not only will this agreement give domestic consumers more certainty in their gas supply, it will also bring around 1000 new jobs for Queensland.”
The agreement will allow Arrow Energy to commercialise the majority of its gas reserves in the Surat Basin to supply both domestic and liquefied natural gas (LNG) export customers, and will help reduce the tight supply-demand balance in the southern and eastern gas market.
In September 2017, the ACCC Gas Inquiry found the East Coast gas market is becoming increasingly reliant on supply from Queensland.
“While this agreement will make a material difference to supplies, the cost of transporting gas to the southern market is significant and is not a sustainable long-term solution for businesses and households in Victoria and New South Wales,” Minister Canavan said.
Arrow will accelerate first gas production to approximately 2020, providing up to 240 petajoules per year of gas. This equates to approximately 10 per cent of the southern and eastern gas markets’ annual production.
Source: Ministers and Assistant Ministers
for the Department of Industry, Innovation and Science