This is an exciting time to be an investor in the supply side of the Queensland gas market, with the gas industry on the east coast undergoing significant structural change with the growth of demand from the Queensland-based liquefied natural gas (LNG) export industry causing a tight supply market.
State Gas Limited, has a 60% interest in, and is operator of, a petroleum lease (PL 231) in central eastern Queensland, approximately 545 km northwest of Brisbane and 50 km southwest of Rolleston.
PL 231 hosts a conventional gas project located in the Denison Trough, first discovered in the 1950s. PL 231 is not a coal seam gas target. The primary area of focus for State Gas is the shallow, conventional gas target in the Cattle Creek Formation, a marine sandstone source rock, with a major secondary target in the underlying Reids Dome beds. Both targets have produced gas during the drilling of exploration and appraisal wells on PL 231. A number of historical wells have flowed gas from the Cattle Creek Formation, which was reached at depths of as shallow as 130 meters.
In order to accelerate the options for bringing gas from PL 231 to market, State Gas has recently lodged a pipeline survey licence application with the Queensland Department of Natural Resources and Mines (PSL 2028) with the intention to investigate suitable routes for a feeder pipeline to connect PL 231 with the Queensland Gas Pipeline and the broader east coast gas market.