Southwest gas project set to recommence after market crash
AFTER the pandemic shut down The Range Gas Project in March, Central Petroleum has announced the project is set to resume with a new partnership moving forward.
The Surat Basin gas project, which is set to create 143 production wells, is now a 50/50 joint venture between Central Petroleum and Incitec Pivot Limited.
The project came to a grinding holt as the pandemic created uncertainty within the gas sector as gas prices dropped globally.
Central Petroleum managing director and CEO Leon Devaney said as the gas market begins to stabilise, the company is eager to work with their new business partner to get the project up and running for gas production in 2023.
“We are very pleased to restart the Range Gas Project with our partner Incitec Pivot Limited,” he said.
“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
“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.”
As the Range Gas Project restarts, a three well appraisal program is set to begin in 2021, and then more permits will be requested for further development to keep the companies on track to supplying the east coast gas market in two years’ time.
Situated between Chinchilla and Roma, the gas will be produced on site, then funnelled through new Roma pipelines directly to Brisbane, or other nearby pipeline infrastructures to maximise efficiency.