One of the Surat Basin’s newest gas projects will be a joint venture between a Brisbane-based energy producer and an Australian multinational which in part specialises in manufacturing explosives and fertilisers.
Listed Brisbane developer Central Petroleum will begin early stages of constructing the Range Gas Project in the first half of next year. The 22,000h tenement is located between Miles and Wandoan.
The Caller can exclusively reveal the project is expected to involve a capital expenditure of more than $250 million and create around 200 jobs. It’s similar in scale to the nearby Atlas gas project by Senex.
First gas production is projected for 2023.
The Range Gas Project may supply gas to a subsidiary of ASX 100 company Incitec Pivot, or be sold on the gas market. Subsidiary Dyno Nobel manufactures fertilisers and explosives for the farming and mining industries.
A press release from Central Petroleum said an exploration program carried out in 2019 “exceeded expectations”, but the project was halted due to the economic downturn and slumping global energy markets.
“We are very pleased to restart the Range Gas Project with our partner Incitec Pivot Limited,” said Central Petroleum CEO Leon Devaney.
“The new gas sale agreement and restructured finance facility announced last week, combined with continued resilience in term gas markets, give us the flexibility and confidence to restart Range.
“This is a major area of growth for Central which we believe will be a very competitive new source of gas for the east coast market when the project comes onstream in 2023.”
It’s planned that gas will be processed on site and transported to market via a new pipeline connecting Roma to Brisbane, or will “tie in” to other nearby pipeline infrastructure, the press release said.