Blue Energy as signed a Memorandum of Understanding (MoU) with the owner of the North Queensland Gas Pipeline (NQGP), Palisade Investment Partners, to bring new domestic gas supplies into the Townsville market in Queensland, Australia.
The NQCP is the only source of natural gas to North Queensland; the onshore natural gas pipeline crosses 391km, transporting gas from the Morandbah Gas Project (MGP) in the Bowen Basin to power and industrial users in Townsville, Queensland.
Under the terms of the MoU, both companies will market Blue Energy’s Northern Bowen Basin gas reserves in the Sapphire Block, which is located near the NQGP. The agreement will also seek to obtain access to the existing MGP and gas processing facilities.
They will also speed up the supply and delivery of new affordable domestic gas to North Queensland users, who are looking to secure long-term reliable domestic gas supply as a primary energy source, or as feedstock for manufacturing.
‘Regional economic growth opportunities’
“It is pleasing to be able to develop this opportunity to bring new domestic gas supplies to market given the Australian Energy Market Regulator (AEMO) forecast of gas shortages for the east coast domestic market, together with price escalation,” commented John Ellice-Flint, chairman of Blue Energy.
“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 18GWh lithium-ion battery cell manufacturing facility in Townsville.
“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. The royalties paid on domestic gas production flow to the Queensland Government.”
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