Bowen Basin pipeline study
The Queensland Government’s economic recovery strategy from COVID-19 continues to build on traditional strengths, like the state’s resources industry and investing in future infrastructure.
Building vital infrastructure helps create jobs in construction and stimulate growth in Queensland’s regional economies. It also ensures new supplies of gas are available into the future. These supplies will assist in driving down gas prices and support new industry.
Both the Queensland Government and Australian Government have each committed to contributing $5 million towards a Bowen Basin pipeline study, with a combined total investment of $10 million which will occur in multiple phases. The first phase is a concept study of key initiatives that merit further detailed investigation.
First stage is underway
As part of the recovery plan for Queensland, the initial concept phase of a Bowen Basin pipeline study is now underway.
The study will investigate the potential for infrastructure, including a gas pipeline to connect gas reserves in the Bowen Basin to the east coast domestic market and overseas customers.
As well as analysing gas prospects and sources of fugitive emissions in the area, the study will look at how we can better capture emissions and put them to use in areas such as power generation and manufacturing.
The initial concept study is expected to take around 6 months, with final recommendations to be made by the end of 2021.
The key value of the information generated from the concept study recommendations will identify initiatives that merit further investigation through a feasibility study, to be completed by 2023.
Benefits of a new gas pipeline
Gas is a critical energy source for Queensland’s manufacturing sector. A more affordable gas supply will support jobs in our supply chain and industries as well as providing gas to firm electricity supplies, allowing the integration of greater volumes of renewable electricity.
The Bowen Basin, which has traditionally focused on coal production, has the potential to bring more gas to Queensland’s domestic and export markets – by opening up areas for new gas production and capturing unutilised gas from underground mines.
Increasing supply to the east coast will not only mean more affordable gas for domestic customers but will provide more royalties for Queensland and jobs for Queenslanders..
A gas pipeline connecting the Bowen Basin can potentially reduce fugitive gas emissions from the resources industry, contributing towards Queensland’s transition to a low-carbon economy.
If the study finds the pipeline project to be feasible, it could create more than 1,000 jobs during construction and would supercharge the opening up of gas production in the Bowen Basin, bringing many more jobs to the region.
Last updated 23 June 2021