New study to unlock potential of Bowen Basin

Planning is under way to investigate the earning and jobs potential of a gas pipeline in Central Queensland.

Queensland Resources Minister Scott Stewart is in Paget today talking about the potential of a gas pipeline in the Bowen Basin. Picture: NCA NewsWire / Dan Peled

Planning for a gas pipeline that could unlock the Bowen Basin and create more jobs is under way.

Resources Minister Scott Stewart said the initial concept phase of the $5 million Bowen Basin pipeline study was under way.

He said the study would investigate potential pipeline and infrastructure to improve the delivery of Bowen Basin gas to the domestic and export markets.

“Gas is a major energy source for Queensland’s manufacturing sector, and we are always looking at ways to bring more of it to market,” he said.

“Additional gas infrastructure will provide new sources of supply, leading to more affordable gas and supporting jobs across our critical supply chain and industries.

“Just like we opened up the Surat Basin 10 years ago, the Bowen Basin has the potential to be a source of future gas projects and jobs for Queenslanders.”

KPMG — in partnership with GHD and Netherland, Sewell & Associates Inc — has been contracted to deliver the concept study which is expected to take six months with final recommendations to be made by the end of the year.

Mr Stewart said the study would also analyse the potential amount of gas and sources of fugitive emissions in the area and determine the feasibility and best pathway for the infrastructure to achieve multiple benefits.

“This study will look at ways in which we can better capture fugitive emissions from the coal mines of the Bowen Basin and put them to use for things like power generation and manufacturing,” he said.

“This will not only bring additional gas to market but will also make a valuable contribution to Queensland’s transition to a low carbon economy.

“The Premier asked the Federal Government to co-contribute to this important body of work and I acknowledge the $5 million commitment to this in their 2021-22 budget.

“We will work closely together to ensure these additional opportunities are maximised.”

Mackay MP Julieanne Gilbert said the potential pipeline meant there could be opportunities for local businesses to gain work and create jobs.

“The resources industry is a key part of Mackay’s economy,” she said.

“Our traditional strength is in resources, and this key initiative of Queensland’s Economic Recovery Plan will strengthen regional Queensland’s recovery from the impacts of the COVID-19 pandemic.

“It is just another example of our commitment to supporting new economic activity in our regions.”

Mr Stewart said Queensland continued to do the heavy lifting on gas supply and policy.

“Since 2015 the Queensland Government has released more than 80,000 square kilometres of land for gas exploration, over a quarter of it guaranteeing the gas will be for Australian consumers,” he said.

“It was a ground-breaking move, and a national first, when we released land nearly three years ago exclusively for gas for the domestic market.”

Queensland Resources Council chief executive Ian Macfarlane said if found to be feasible, the Bowen Basin gas pipeline project could provide a better connection from the region’s gas reservoirs to Queensland’s gas markets, delivering a welcome increase in gas supply.

“This pipeline project also has the potential to deliver improved environmental outcomes through better use of waste gas from existing coal mines which will help lower emissions,” he said.

“Gas is an essential input for refining and smelting, so this pipeline could add value to Queensland’s metals exports.

“The QRC is delighted to see infrastructure like this under consideration, and we welcome the State Government’s commitment to working collaboratively with the Commonwealth on this project.”