Blue Energy has signed a non-binding MOU with North Queensland Gas Pipeline No.1 Pty Ltd and North Queensland Gas Pipeline No. 2 Pty Ltd (together referred to as NQGP) to facilitate bringing new domestic gas supplies into the strong Townsville market.
NQGP is North Queensland’s only source of natural gas. The 391km onshore natural gas pipeline system transports gas from the existing Moranbah Gas Project in the Bowen Basin to power and industrial users in Townsville, Queensland.
Blue Energy said that as part of the MOU, NQGP will facilitate introductions to potential customers in Townsville for Blue Energy’s Northern Bowen Basin gas reserves in the Sapphire Block of ATP814P, which is located in close proximity to the NQGP.
“Blue will also seek to negotiate access to the existing Moranbah Gas Project (MGP) and gas processing facilities to minimise infrastructure duplication and hence cost for end users in the event Blue is successful in signing new gas buyers,” Blue Energy added.
“This MOU will assist the development of the supply and delivery of new affordable domestic gas to North Queensland gas users (and facilitate the development of the Sapphire reserves), who are seeking to secure long-term reliable and affordable domestic gas supply as a primary energy source or as feedstock for manufacturing.”