The Queensland Resources Council (QRC) has welcomed the announcement by Senex Energy it will spend $40 million on increasing natural gas production at its Atlas operation in Southern Queensland.
The expansion will enable Senex to increase its annual gas supply at Atlas, located near Wandoan, by 50 percent to reach 18 petajoules a year.
Under a Queensland Government policy, Senex' Atlas gas project is classified as a domestic-only production tenure which means its gas can only be sold to Australian end users.
QRC Chief Executive Ian Macfarlane said the QRC supported the government's domestic gas policy, which was introduced to give Queensland and Australian manufacturers reliable access to gas.
Mr Macfarlane said Australia's domestic gas supply market is expected to tighten over the next 12 months, reinforcing the importance of gas companies like Senex expanding their operations to supply more gas, including to manufacturers in southern states.
It's a clear signal to other states they need to do more to shore up their own energy needs by opening up their own fields," he said.
"The resources sector is transitioning to a lower emissions future as fast as the technology will allow, but it can't happen overnight.
"In the meantime, Australia will continue to need sources of energy like gas, especially for manufacturing purposes."
Mr Macfarlane said Senex' expansion plans, which the company estimates will inject $15 million into the local economy and create 100 new jobs in the construction phase, are another example of the resources sector playing a critical role in underpinning the state economy and supporting regional communities.
