The Queensland Government is launching a $21 million grant program to drive exploration for gas reserves in the Bowen and Galilee basins.

The Frontier Gas Exploration program recognised the importance of ongoing exploration and the role of gas for firming renewable energy generation in Queensland, Resources Minister Scott Stewart said.

“Queensland continues to do the heavy lifting when it comes to gas and we continue to support the sector,” he said.

Budget papers show revenue from the gas sector will reach a total $7.011 billion in the five years to 2026-27.

The average $1.4 billion of gas receipts each year will help the state fund the equivalent of a new public hospital or 140 new schools annually, according to the Australian Petroleum Production & Exploration Association (APPEA).

“This is one of the benefits of new gas supply and the direct return to the Queensland public from the hundreds of billions of dollars of industry investment and stable policy and regulatory settings from the State Government over more than a decade,” APPEA chief executive Samantha McCulloch said.

“This year’s Budget, for example, further supports gas exploration to unlock new energy in the Bowen and Galilee basins.

“East coast energy system pressures have shown how Queensland gas keeps the lights on as New South Wales and Victoria outsource their energy security with bans and uncertain regulatory environments chilling investment in new supply.

“Meanwhile, Queensland’s long-running support of onshore gas development sees it continue to enjoy substantial economic benefits, with the supply chain supporting around 30,000 jobs, millions of dollars being invested in regional communities and billions flowing to the government.”

Ms McCulloch said the future role of gas was shown with the new $85 million commitment to upgrade CS Energy’s Brigalow Hydrogen-ready Gas Peaking Plant, illustrating how gas will back up renewables in electricity generation under the Queensland Energy and Jobs Plan.

“Queensland understands how to extract the economic benefits from gas while charting a path to net zero as gas backs up renewables, replaces coal, supports industry and manufacturing and kickstarts low-carbon hydrogen production,” she said.