Sydney-based APA Group is to build a gas pipeline as part of an expansion to its east coast gas grid following the signing of a memorandum of understanding with Brisbane company Blue Energy Ltd.
The pipeline is part of a negotiation with Blue Energy to connect its Bowen basin coal seam gas province reserves in central eastern Queensland to the southern manufacturing and residential demand centres.
The pipeline link will enable gas resources to be supplied and traded between Townsville in Queensland down to Hobart in Tasmania using APA’s east coast grid.
Blue Energy is also engaged with several parties interested in purchasing its Bowen gas, including existing gas users and new entrants. The volumes sought range from several petajoules a year to volumes that enable development of Blue Energy's entire resource base currently estimated at 300 petajoules of 3P reserves.