Blue Energy sign domestic gas supply MOU

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Australian oil and gas exploration company, Blue Energy Limited, has signed a non-binding MOU with NQGP to facilitate bringing new domestic gas supplies into the Townsville market.

NQGP (North Queensland Gas Pipeline No.1 and North Queensland Gas Pipeline No. 2) is North Queensland’s only source of natural gas.

The 391km onshore natural gas pipeline system transports gas from the existing Moranbah Gas Project (MGP) in the Bowen Basin to power and industrial users in Townsville, Queensland.

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, which is located in close proximity to the NQGP.

Blue Energy will also seek to negotiate access to the existing 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 Chairman, Mr John Ellice-Flint, said it was pleasing to be able to develop this opportunity to bring new domestic gas supplies to market.

“The development of new domestic gas supplies to North Queensland will deliver regional economic growth opportunities through new industries such as the Imperium Townsville consortium’s proposed $3 billion 18GWh lithium-ion battery cell manufacturing facility in Townsville,” Mr Ellice-Flint said.

“Imperium 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.”

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