THE Federal Government may soon stump up funding for Bowen Basin gas pipelines, if an offer put forward by the State Government this week is successful.
In order to tackle a looming east coast gas shortage, State Resources Minister Anthony Lynham put forward a package offer to his federal counterpart Senator Matt Canavan on Sunday.
This included a proposal to use funds from the $5b Northern Australia Infrastructure Facility to build gas pipelines.
Dr Lynham then sought an urgent meeting with the senator to discuss the proposals.
"Urgent action is required to increase domestic gas supply to protect industry and to secure jobs," Dr Lynham said.
"Access to new pipelines would make all the difference in opening up new potential gas producing areas like the Bowen and Galilee basins.
"There is a lot more that can be done, and we believe those actions should be funded by the Commonwealth in the national interest."
Dr Lynham also proposed a jointly funded study into infrastructure options.
However, he also said the state was already 'ahead of the pace' as it had land on offer where the gas will be for sale in Australia only.
He said the state was looking at further and larger land releases in the Surat Basin with the same Australian market conditions.
While he said the gas extraction's impacts on groundwater was a key concern for landholders, he said management strategies would be in place.
This would include the development of a basin-wide cumulative groundwater model and monitoring program.
The Queensland Resources Council said it supported the move to seek federal funding to build new infrastructure to emerging gas producing areas.
Senator Canavan has been contacted for comment.
Tenders close on April 20 for the pilot of land released with the Australia-only sale condition.
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