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Dec 03, 2020

Long-term sale deal for Moranbah coal seam gas

Long-term sale deal for Moranbah coal seam gas

Blue Energy has secured a deal to to supply EnergyAustralia with 100 PJ of gas at Wallumbilla over 10 years from the Northern Bowen Basin.

That foundation volume helps underpin plans for a gas pipeline
from the Bowen Basin into the Wallumbilla hub and for the development of Blue’s coal seam gas tenements in the Moranbah area.

The non-binding Heads of Agreement with EnergyAustralia was the first such agreement that would allow gas to be delivered into the
main East Coast domestic market to the south from Moranbah, Blue Energy said.

“It is very encouraging to see that the acknowledgement by the Federal and Queensland Governments of the gas potential in the North Bowen Basin has given gas buyers the confidence to seek to secure long-term gas supply
agreements for gas from this under-developed producing basin,” Blue Energy managing director John Phillips said.

Unlocking five key gas basins starting with the Beetaloo Basin in the NT and the North Bowen and Galilee Basin in Queensland was a major plank of the Federal Government’s gas-fired recovery plan announced in September.

And the State Government has committed $5 million for a pre-feasibilty study for a new 500km gas pipeline to connect gas reserves in the Bowen Basin to the east coast domestic market and overseas customers.

Blue’s ATP814 permit has been assessed by independent reserves assessor Netherland Sewell and Associates to contain upwards of 3,248 PJ of contingent resource (recoverable) around Moranbah.

In addition to this volume, there is currently 71 PJ of 2P reserves and 298 PJ of 3P reserves in close proximity to the existing gas field infrastructure in the northern Bowen Basin.

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