Blue Energy and Origin Energy have signed a non-binding Heads of Agreement (HOA) for the supply of up to 300PJ of gas over ten years from Blue Energy’s Northern Bowen Basin coal seam gas tenure to Wallumbilla.
This is the second such HOA executed by Blue Energy which facilitates North Bowen Basin gas to be delivered into the main East Coast domestic market to the south from Moranbah.
Recently, Blue Energy and EnergyAustralia signed a similar agreement for the delivery of 100PJ of gas from the North Bowen basin into Wallumbilla. This now brings the total gas under HOA from Blue Energy’s North Bowen Basin acreage to 400PJs.
This latest agreement with Origin represents another foundation gas volume that will contribute to the underpinning of the proposed gas pipeline from the North Bowen Basin into the Wallumbilla Hub, and for the development of Blue Energy’s North Bowen Basin gas resources.
Blue Energy’s independent reserve certifier, Netherland Sewell and Associates Inc of Dallas Texas (NSAI), has identified the areas where the company can develop its resources, and these areas coincide with Blue’s Production Licence Applications lodged with and currently being processed by the Queensland Government.
Blue Energy’s 100 percent owned permit, ATP814, has been assessed by NSAI to contain 3,248PJ+ of Contingent Resource (recoverable) around Moranbah. In addition to this volume, there is currently 71PJ of 2P reserves and 298PJ of 3P reserves in close proximity to the existing gas field infrastructure in the North Bowen Basin.
Blue Energy’s Managing Director, John Phillips, said, “The momentum for development of the North Bowen Basin gas resource for domestic east coast gas consumers continues to build, following the high grading of this significant gas resource by both Federal and State Governments.
“This prioritisation continues to give east coast gas buyers the confidence to secure long term gas supply agreements from this producing gas basin.”
Blue Energy is a Brisbane-based Australian exploration company focused on the discovery and development of gas resources in the North Bowen, Galilee, Beetaloo/ Greater McArthur Basins in the Northern Territory.