Blue Energy Ltd., Brisbane, has executed a non-binding heads of agreement with Origin Energy Ltd., Sydney, to supply up to 300 petajoules of gas over 10 years from Blue’s Bowen basin coal seam gas resources in Queensland.
The gas is to be delivered to the Wallumbilla hub and is for domestic use.
This is the second agreement executed by Blue Energy for gas supply from its permit ATP 814 in east Queensland. Last December Blue signed an agreement with Energy Australia for 100 petajoules of gas over 10 years destined for the eastern Australian domestic gas market.
Both agreements have an indicative start date of 2024.
ATP 814, 100%-owned by Blue, comprises seven disconnected blocks in North Bowen basin ranging from south of Moranbah northwards to Newlands.
The permit is adjacent to Arrow Energy Ltd.’s (Shell-Petrochina) Moranbah gas project which is currently supplying coal seam gas to the domestic market and which has plans to expand into supply to the LNG infrastructure on Curtis Island near Gladstone.
Blue’s new agreement represents another foundation gas volume to help underpin a proposed gas pipeline from North Bowen basin region into Wallumbilla.
Netherland Sewell and Associates Inc., Dallas, Tex., has assessed ATP 814 to contain an estimated 3,248 petajoules of contingent recoverable resource in the Moranbah region.
The prospective reservoirs in the permit are Rangal Coal Measures, Fort Cooper Coal Measures, and Moranbah Coal Measures.
The momentum for development of North Bowen basin gas resource for domestic east coast consumers continues to build following the high grading and prioritization of the resource by both the Australian and Queensland governments, said John Phillips, Blue Energy managing director.
