Blue Energy and EnergyAustralia have signed a non-binding Heads of Agreement (HOA) for the supply of 100PJ of gas at Wallumbilla over ten years from Blue’s Northern Bowen Basin ATP814 coal seam gas tenure.
This is the first such agreement that will allow North Bowen Basin gas to be delivered into the main East Coast domestic market to the south from Moranbah.
It is a foundation volume that is expected to 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 Bowen tenements.
Blue Energy’s independent reserves assessor, Netherland Sewell and Associates Inc of Dallas Texas (NSAI), has identified the areas where Blue Energy can develop its resources, and which coincide with the company’s Production Licence Applications currently with the Queensland Government.
Blue Energy’s ATP814 permit has been assessed by NSAI to contain 3,248PJ+ of Contingent Resource (recoverable) around Moranbah.
In addition to this volume, there are 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, “It is very encouraging to see that the acknowledgement by the Federal and Queensland Governments of the gas potential in the North Bowen Basin has given gas buyers the confidence to seek to secure long term gas supply agreements for gas from this under-developed producing basin.”