Australia's government will provide A$20.7mn ($15mn) in funding for exploration work and research into building a pipeline from potential gas fields in the North Bowen and Galilee basins in northern Queensland, to connect with eastern Australia's gas network.
The funding is part of Canberra's gas-led economic plan, and follows financing for similar work in the Beetaloo basin in the Northern Territory.
The exploration and pipeline studies funding is part of a wider financing package for the gas sector in the region, which includes a further A$27.7mn for research on measuring and assessing the potential gas resources in the Galilee and North Bowen basins, Australian resources minister Keith Pitt said in a statement. An additional A$370mn was earmarked for road upgrades in the region to provide greater access for any future gas projects, Pitt said.
"The North Bowen and Galilee basins are estimated to hold enough gas to meet Australia's east coast needs for over a decade. The new plan will support industry to overcome the specific challenges of developing these resources," the minister said.
Both the North Bowen and Galilee basins are known to hold vast coal reserves. The Bowen basin is the largest producing region for metallurgical coal, and any gas resources there are expected to be coal bed methane (CBM), with some potential conventional gas resources. The geological conditions of North Bowen and Galilee are challenging and require more testing of drilling techniques to lower production costs, Pitt said.
Gas pipeline infrastructure in the region is insufficient to support development at an economically viable scale. Upgrades are dependent on proven resources and agreed gas purchase contracts, he said.
Beyond gas, the basins contain other commodities, such as gold and critical minerals, Pitt said. The basins also have the potential to support the development of hydrogen, the minister said. Queensland is the largest onshore producer of CBM in Australia, with more than three-quarters of output as feedstock for the three LNG plants located at the Queensland port of Gladstone.
