Bowen Basin gas developer Blue Energy has signed a memorandum of understanding that paves the way for it to bring gas to North Queensland industry.
The MOU is with North Queensland Gas Pipeline owner Palisade Investment Partners, whose 391km pipeline system takes gas from the Moranbah Gas Project to Townsville.
The agreement will see both companies market gas from Blue Energy’s Sapphire Block in the northern Bowen Basin and seek use of Moranbah Gas Project processing facilities.
Blue Energy says the MOU will expedite the supply of new domestic gas to North Queensland users seeking a long-term, affordable source for energy or to feed manufacturing.
“The development of new domestic gas supplies to North Queensland will deliver regional economic growth opportunities through new industries such as the Imperium3 Townsville consortium’s proposed $3 billion 18 GWh lithium-ion battery cell manufacturing facility in Townsville,” Blue Energy chairman John Ellice -Flint said.
“Imperium3 Townsville recently completed a feasibility study which has been submitted to the Queensland Government.
“With the potential re-opening of Queensland Nickel at Yabulu in Townsville, both projects will require substantial domestic gas supplies.
“Thousands of new jobs in North Queensland depend on reliable and affordable domestic gas supplies over the next 30 years and Blue Energy is determined to play a major role in supplying domestic gas to meet this demand.”
Blue Energy’s Sapphire Block has been assessed to contain almost 216 PJ of 3P reserves and a further 186PJ of contingent resource.
The tenement is located 12km from the existing Moranbah Gas Project gas processing facilities and less than 2km from gasfield gathering infrastructure.
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