New tenders for gas exploration have been awarded in Queensland. 

The new exploration tenders cover six areas across the Bowen and Surat basins as part of the Queensland Exploration Program, including one area specifically earmarked for domestic gas supplies.

Proponents say the areas will be vital in avoiding a predicting upcoming gas shortfall.
Since 2017, Queensland has released over 20,000 square kilometres of land exclusively for Australian domestic gas supplies. 

According to the Australian Bureau of Statistics, oil and gas exploration expenditure has increased during January-March compared with the previous year and quarter.

“Queensland continues to do the heavy lifting when it comes to the east coast market because we know additional supply is key to ensuring its reliability,” says Scott Stewart, Queensland's Minister for Resources and Critical Minerals.

The Australian Energy Market Operator (AEMO) has highlighted gas supply risks across southeast Australia. 

The agency recently issued a gas supply risk warning for the east coast after inventories dropped at the Iona gas storage site in Victoria.
Despite being a major gas producer, Australia faces shortfalls due to high export commitments, infrastructure limitations, supply disruptions, storage capacity constraints, and complex market dynamics.

An extended unplanned disruption at ExxonMobil’s Longford gas plant, southern Australia's largest supply source, further reduced supplies.

In response to these challenges, the federal government has approved plans to build more than 120 new gas wells in southern Queensland. 

The project by Senex Energy is expected to create over 900 jobs and contribute significantly to the domestic gas market by the end of 2025.

Senex Energy, owned by Australian billionaire Gina Rinehart and South Korean steelmaker Posco International, has received approval for its $1 billion expansion of gas fields near Wandoan, about 400 kilometres north-west of Brisbane. 

The project, which had been on hold since December 2022 due to federal government intervention in the gas market, will now proceed after receiving the necessary approvals.

The expansion is projected to produce enough electricity to power over 2.7 million homes annually, fulfilling more than 10 per cent of the east coast's domestic gas requirements.

Environment Minister Tanya Plibersek emphasised the project's domestic focus, saying; “This project will primarily contribute domestic gas supply to households and Australian manufacturing – including for glass, bricks, cement, and food packaging”. 

The project, approved with 75 conditions, includes prohibitions on discharging coal seam gas-produced water to surface water and clearing koala habitats. 

Additionally, Senex is required to implement a water monitoring and management plan to address potential subsidence.

Environmental group Lock the Gate expressed concerns about the project's impact on subsidence and groundwater loss. 

The group argues that Australia needs to focus on transitioning away from fossil fuels to combat climate change effectively.

The Queensland Resources Council (QRC) welcomed the approval, with CEO Janette Hewson saying; “Boosting supply is the key to lowering energy prices for households and businesses, and the extra domestic gas to be supplied by Senex will contribute to that”.

However, the QRC claims that more projects and expanded pipeline infrastructure are necessary to avoid energy shortfalls.