Queensland gas developer Blue Energy says it is delighted at the Federal Government prioritising supplies from the North Bowen and Galilee basins, along with the Beetaloo Basin in the Northern Territory.
The focus was part of a major gas plan announced yesterday to help underpin the nation’s post-COVID-19 economic recovery through the provision of reliable long-term gas supplies.
Blue has acreage positions in all three nominated basins, including certified gas reserves and resources in the North Bowen Basin (3000 PJ Resources; 298 PJ 3P reserves) and Galilee Basin (838 PJ Gas Resource).
It has been lobbying for the establishment of a new pipeline south from Moranbah to realise the potential of Bowen Basin gas reserves.
Blue Energy said Prime Minister Scott Morrison’s announcement on the North Bowen Basin was doubly satisfying as it came soon after the announcement by the State Government that it would invest $5 million on a pipeline route study.
“Along with extending a lifeline to struggling Australian east coast manufacturers and assisting in rebuilding our economy, long-term gas supply from the Bowen Basin will be critical to firm up large renewable energy projects to meet Queensland’s mandated 50 per cent renewables target by 2030,” managing director John Phillips said.
More pipeline options needed for Queensland
Santos managing director and chief executive officer Kevin Gallagher said the Federal announcements yesterday recognised the crucial role that the natural gas industry would play in creating jobs as the Australian economy comes out of hibernation from COVID-19.
“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that will be the cheapest source of gas for NSW customers if it is approved by the Independent Planning Commission at the end of September,” he said.
“The Prime Minister’s National Gas Infrastructure Plan is very welcome because there are missing pipeline links that are needed to connect new projects like Narrabri and new basins like the North Bowen, South Nicholson in Queensland and Beetaloo in the Northern Territory.
“We also know that the existing pipeline route to southern markets from Queensland is constrained and long, therefore transport is expensive, so we need more pipeline options to get Queensland gas south by the middle of this decade.
“If you want to keep transport costs, and therefore gas prices as low as possible, then underwriting projects through transportation contracts, for example, or the establishment of a special purpose vehicle for low-cost financing, such as for the NBN or NAIF, would help do that.”