A joint venture between the Australia Pacific LNG (APLNG) partners and Armour Energy has been awarded a block by the Queensland Department of Natural Resources, Mines and Energy (DNRME).
ATP2046 is an 18km2 coal seam exploration tenure located 22km south‐west of Chinchilla and adjoins APLNG’s Talinga Project. The block was part of the first national tender where gas has been designated to be supplied exclusively to Australian domestic manufacturers, an initiative by the Queensland Government.
As a part of the Joint Venture, APLNG (90 per cent) will operate the tenure, however both parties are able to independently market their proportion of produced gas.
Armour Energy’s CEO, Mr Roger Cressey said: “Armour is extremely pleased that this project is rapidly moving ahead, and we are excited to support the Queensland Government in this unique approach to gas supply to Australian manufacturers. As 42 per cent of Armour’s shareholder base are fellow Queenslanders, we see this concept for local gas development as a tremendous boost to the State in terms of local energy supply, local manufacturing and local jobs, whether these jobs are a part of the gas field’s development or within the downstream manufacturing sector which has clearly expressed a need for certainty around obtaining reliable and affordable long‐term gas supply options for their business needs.”
Armour Energy said in a statement that it anticipated that first gas from this block will be delivered by mid‐2021 and Armour looks forward to supplying the gas to local manufacturers as soon as possible with envisioned long‐term secure GSA’s.