Amid daily news reports of a gas crisis in Australia, Santos GLNG has announced that it will begin drilling and connecting more than 130 new production wells in the Fairview gas field north of Roma later this month.
The first gas is expected to flow in October.
At peak production, the project will produce around 78 terajoules per day, equivalent to about 25 per cent of domestic demand in Queensland.
Announcing the $360m investment, Santos managing director and CEO Kevin Gallagher said that while the gas will feed the GLNG plant in Gladstone and bring in export revenue for the nation, it would free up other supply sources for the domestic gas market.
It will also deliver $91.5 million in royalties for Queensland.
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Mr Gallagher said Queensland's coal seam gas would never have been developed without access to huge international markets and the massive capital investment of joint venture partners and customers in Asia.
"Without that investment, there would be less gas supply in the domestic market today," he said. "Since the GLNG project was sanctioned a little over a decade ago, Santos and its GLNG partners have contributed nearly AU$300 million in royalties to state revenues."
The new investment will provide ongoing employment for 160 drilling and construction contractors over the next two and a half years,
"Importantly, local communities and businesses will benefit with over AU$100 million to be spent on local goods and services to support the project," Mr Gallagher said.
"The investment will also see an extra $600,000 go to the Maranoa and Banana Regional Councils for road upgrades and maintenance.
"The investment from Santos and its joint venture partners will deliver significant benefits for the Maranoa and Banana regions."
Mr Gallagher described the incremental investment in Fairview as fitting with the company's "low cost, disciplined operating model", adding that it built on Santos' commitment to Queensland and the Maranoa and Banana regions.
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Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
