Australia moves to expand gas exploration in Queensland basins amid supply concerns

(Bloomberg) – Australia’s Queensland state has expanded oil and natural gas exploration in a major basin, as the fossil fuel exporter seeks to address local shortfalls.

Omega Oil & Gas Ltd., closely held Tri-Star Stonecroft Pty and a unit of Beach Energy Ltd. were appointed preferred tenderers for three exploration areas in the Taroom Trough, the state government said in a statement on Tuesday. That follows the naming of Santos Ltd. and the Beach unit as preferred tenderers for three gas exploration areas in the Cooper-Eromanga basin in January.

Queensland’s Liberal National government has promoted the expansion of its massive coal industry and the development of oil and natural gas, arguing it will unlock future supply and put downward pressure on energy prices. That comes as demand for gas on Australia’s east coast is forecast to outstrip supply from 2028 as aging fields decline, intensifying pressure to find new sources without undermining national emissions targets.

“This new exploration area is a critical step in boosting Queensland’s domestic energy supplies to put downward pressure on energy prices,” Dale Last, the state’s minister for natural resources and mines, said in the statement. “This area is emerging as a real prospect to become Australia’s first major oil province since the 1970s.”

Shares in Omega rose as much as 19% in Sydney, their biggest jump since September. Beach Energy advanced as much as 3.5%.

Image credited to Bloomberg.