Additional infrastructure is needed as a priority to further open the potential of the Bowen Basin’s gas reserves, according to the head of Brisbane-based company Blue Energy Limited.
Chief executive officer John Phillips said a new pipeline south from Moranbah was required to bring more gas to the east coast market.
He said the potential for the Bowen Basin to be a major contributor to Australia’s diminishing east coast gas supplies had received a timely boost with a significant resource upgrade in the northern Bowen Basin region announced by Blue Energy.
Mr Phillips said the area was already a significant gas province, with existing discovered gas resources of around 15,000 petajoules, which was enough to supply the domestic gas market for 30 years.
“While the basin is presently on production into the small Townsville and Moranbah markets, the need for a new pipeline link south from Moranbah to bring these significant gas resources to east coast markets is paramount,” Mr Phillips said.
“The northern Bowen Basin, which already has major development projects that have government and environment approval and are ready to execute, can deliver significant gas volumes to the southern market, if these projects are commenced.”
Blue Energy said the northern Bowen Basin resource upgrade followed a review and confirmation of the company’s existing gas resource by leading international independent reserve certifier, Netherland, Sewell and Associates.
“(They have) subsequently advised an upgrade of our existing gas resource by an additional 237 petajoules of technically recoverable natural gas,” Mr Phillips said.
“The upgrade is a further positive outcome for Blue Energy and … it also comes as gas-reliant industries continue the struggle to establish long-term gas supplies, which threatens the viability of some manufacturing companies and potentially the jobs of hundreds of thousands of workers on the east coast.”
Mr Phillips said developing northern Bowen Basin resources provided a solution to east coast gas shortages by linking that resource area to the east coast gas market via a new pipeline.