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PERTH (miningweekly.com) – Federal Resources, Water and Northern Australia Minister Keith Pitt has called for continued investment in the Australian oil and gas sector, despite the price volatility.
Speaking in Queensland, Pitt this week said that despite recent, short-term global oil and gas price volatility, developing more gas resources remained a priority for the government, one that underpinned economic, energy supply, and emissions reduction goals.
“There is considerable potential for more gas to be discovered and developed right here in Queensland. The North Bowen basin is connected through to Townsville but the resource potential of the basin is yet to be fully understood. If there are the commercial gas resources that some claim, the basin will need to be connected into the east coast market for it to reach its full potential,” the Minister said.
“It’s a similar story in the Galilee basin with work going on to ascertain its true commercial potential for gas alongside its undoubted coal resources. Going further west, companies are also getting excited about the potential for shale gas resources in the Georgina and South Nicholson basins.”
Pitt pointed out that government has already invested A$8.4-million to help unlock the world class potential of the Beetaloo basin in the Northern Territory, bringing with it the development of more gas and potentially oil, supporting the local economy and bringing with it employment and business opportunities in the north.
“The Beetaloo basin may contain more gas then is off the North West Shelf. If commercial it will create thousands of jobs and business opportunities and really build Darwin into a true downstream petroleum hub along with its strong liquefied natural gas (LNG) export projects.”
Pitt this week noted that the Covid-19 pandemic has also reinforced the vital importance of strategic minerals to the global supply chain, noting that Australia was well placed to take advantage of this continued demand.
“Like the success story in building up our LNG industry, Australia also recently became the world’s largest producer of lithium. Australia’s first lithium processing plant commenced production last year with industry investments promised for additional plants in the coming years.
“It is this sort of success that we want to replicate for other emerging opportunities, both mineral development and moving into production chains.”
The Australian government earlier this year launched the Critical Minerals Facilitation Office to support the development and growth of the critical minerals sector. The Office will work with all levels of government, industry and the science and research sector to develop critical mineral resources, maximise opportunities and develop downstream industries.
“We are making great early strides in achieving this goal, which includes a new level of engagement with our key trading partners to capitalise on Australia’s critical minerals potential,” Pitt said.
Furthermore, the government is also implementing the National Hydrogen Strategy, with the ambition to grow the industry to become one of the top three hydrogen exporters to the Asian markets.
“As we move into new commodities, technologies and industries, we improve the resilience and diversity of global supply chains, boost our domestic economy, and create a range of new jobs.
“New technology, abundant resources and the potential for reliable and affordable energy are all part of my vision for the rejuvenation of regional towns and cities, the creation of new manufacturing jobs and the decentralisation of our economy,” Pitt said.
“The Covid crisis, along with hardship is showing us important lessons about what a new economy might look like. A strong resources sector should go hand in hand with strong and decentralised manufacturing and downstream processing sectors.
“There are real opportunities here, and we will have more to say on this issue as we commence our recovery.”