L-R: Santos Onshore Upstream executive vice president Brett Woods, QLD Energy minister Anthony Lynham and Santos Upstream Queensland vice president Rob Simpson. Image: Santos.
BY ELIZABETH FARBI
SANTOS and its GLNG partners have poured $900 million into new upstream gas developments in south west QLD.
The 2018 capital investment included the first year of funding for the new $750 million Roma East project, which will be progressed over the next three years, and developments around the Fairview, Scotia and Arcadia fields.
On 27 February, Santos Onshore Upstream executive vice president Brett Woods and QLD Mines and Energy minister Anthony Lynham launched the Roma East project, after the first of 430 new wells commenced drilling earlier in the month.
The project comprises about 420km of water, gas gathering and other pipelines, 120 terajoules (TJ) per day of additional compression, 670km of power lines and about 25km of fibre optic cables.
Mr Woods said the Roma East project will create up to 400 construction jobs and help boost the benefits of Santos GLNG’s earlier investments in the region.
“Roma East will also add nearly 50 PJ a year to gas production in Queensland in 2020 – equivalent to about 8 per cent of expected east coast domestic gas demand this year,” Mr Woods said.
“This is great news for both the domestic gas market and our LNG exports.”
Australian Petroleum Production & Exploration Association (APPEA) QLD director Rhys Turner said the gas expansion was a “huge win” and demonstrated how the QLD gas industry was committed to development for the domestic and export markets.
“NSW and Victoria should take note; saying no to gas development means saying no to jobs, royalties and lower energy prices,” Mr Turner said.
“The failure of NSW and Victoria to develop their own gas supply means customers in those States are paying a premium for their gas.
“Interstate gas will always be more expensive than local supply.”
Earlier in the month, Santos also signed a four year, $100 million domestic gas deal to supply power for New Century Resources Century zinc mine near Mt Isa.