Australia’s first gas earmarked to fuel local manufacturing jobs is expected to be flowing in Queensland next year through a partnership of Australian Pacific LNG and Armour Energy.

The joint venture partners have been granted a petroleum production lease 22km south-west of Chinchilla.

APLNG’s Warwick King said development activity would commence within 12 months, with first gas produced from the block next year.

Queensland Mines Minister Dr Anthony Lynham said it was the first block in Australia directed to deliver gas solely for use in local manufacturing.

“This will help boost east coast gas supplies, and help secure around 650 jobs across manufacturers Orica, Orora and Incitec Pivot’s plants in Queensland,” Dr Lynham said.

APLNG and Armour are set to develop up to 103 petajoules of gas over 30 years from the Chinchilla tenement, named Murrungama in acknowledgement of the local traditional owners.

Dr Lynham said the production lease came less than eight months after exploration rights were granted, and would secure a ready supply of gas to power production and support existing jobs.

Since 2015 the Government has released more than 70,000 sq km of land for gas exploration, with over a quarter of it guaranteed for the Australian domestic market.

Under the 2020 Queensland Exploration Program, another further 6804 sq km of land will be made available for petroleum and gas exploration in the highly prospective Surat and Bowen basins.