The move continues the transition from the LNP government’s severe renewable development.
Queensland has revealed that it is accepting bids for proposals to develop nine new gas exploration areas throughout the Cooper/Eromanga and the Bowen/Surut Basin from May 29th, aiming to increase domestic supply and facilitate energy prices.
The announcement comes as the recently elected government of Crisafulli Liberal National Party (LNP) has moved from a renewable energy project to a more traditional energy investment.
“The best way to lower energy prices is to have more energy in the market, and it starts with exploration,” Natural Resources Minister Dale said in a statement. “These steps are to unlock new supplies, secure an investment pipeline and implement appropriate policy settings.”
The government has confirmed that none of the newly released areas intersects the strategic environmental area of the Lake Air Basin.
Future reviews will consider all stages from expressions of interest to competitive bids to ensure that the values of the environment, agriculture and community are respected.
Deputy Prime Minister Jarrod Blysey (L) and Prime Minister David Krishafull arrive to speak to the media after being sworn in the Government House in Brisbane, Australia on October 28, 2024. AAP Image/Jono Searle
This move is also a major economic lever.
Related Stories
Queensland’s gas royalties average an average of $1.7 billion per year over the past three years, supporting nearly 6,000 direct jobs and thousands of people across the supply chain.
LNG is now the second largest export after coal, producing 1,550 peta coal seafarer gas produced for domestic and international markets in 2024 alone.
The minister last criticised anti-gas policies in other states, particularly Victoria, for putting pressure on the East Coast market.
“The unscientific decisions made by the Southern Provinces put a load on Queensland,” he said. “We need a regulatory framework that supports new developments, rather than suppressing new developments.”
Despite Victoria being one of the country’s heaviest gas users due to cold winters, the former Andrews Labour Government maintained a strict ban on gas exploration and development to appease climate advocates.
Samantha McCulloch, CEO of Australia’s energy producers, called it a critical step in ensuring future gas supply for households and industries.
McCulloch also praised Queensland for “making heavy lifts” to ensure reliable supply to the East Coast.
The report warns Australia’s declining investment appeal
The announcement comes a day after energy consultancy Wood Mackenzie warned that Australia has lost its position in global gas investment.
Australia’s competitiveness in natural gas investments has found that global gas expenditures have risen by nearly 30% over the past five years, while Australia has risen by just 15%.
The report also found that 95% of the gas executives surveyed consider Australia to be a less attractive investment destination than five years ago. The analysis included a CEO sentiment survey of Australian gas producers.
Regulation and policy uncertainty was cited as a major deterrent, and one of five projects was affected by cancellation or transfer overseas.
Australia’s share of the investment portfolio of major international oil companies has plummeted from 40% a decade ago to just 15% today.
McCulloch said the findings underscore the need for stable, bipartisan policies.
“The new political landscape provides an opportunity for industry to work with governments to oppose long-term energy security and enduring reforms for economic growth,” she said.
