Senex Energy has been named as the preferred tenderer for a Petroleum Lease on land near Miles in the Surat Basin released to supply the domestic gas market.

Senex managing director and chief executive officer Ian Davies said the company welcomed the opportunity to be part of the solution in delivering new gas supply to domestic customers on the east coast of Australia.

“We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, with first gas targeted for 2019,” he said.

“This award enables Senex to materially expand its gas business while delivering energy security to domestic customers and opportunities for the local community. This clear example of our gas strategy in action will create jobs for Queenslanders and value for our shareholders.”

Natural Resources and Mines Minister Dr Anthony Lynham said about 150 jobs were expected to be created  and Senex expected to invest more than  $200 million on wells and infrastructure over the project’s life.

“Importantly this land is adjacent to existing gas infrastructure which will help to fast-track production from wellhead to market,” he said

Meanwhile a second tendering opportunity with a requirement that gas produced goes to the Australian market has been announced for two areas north of Surat.

The State Government opened tenders today for almost 400sq km of highly prospective land in the Surat and Bowen basins.

“I expect to be able to announce the preferred tenderers in the first quarter of next year,” Dr Lynham said.

Queensland Resources Council (QRC) chief executive Ian Macfarlane praised the Queensland Government’s approach to easing the east coast gas shortage.

“In 24 hours, the Queensland Government has awarded 58sq km of prime acreage to Senex and today opened close to 400sq km of highly prospective land in the Surat and Bowen basins,” Mr Macfarlane said.

“The New South Wales and Victorian governments must follow in the footsteps of the Queensland Government and work with industry, otherwise gas will just move from one state to another while prices rise. We can’t ask businesses to dim the lights or buy diesel generators over summer we have to supply them with more gas.”

Interested parties should register on QTenders at www.hpw.qld.gov.au/qtenders and search for PLR2017181 to download the tender and related documents.