Oil and gas pipeline or production tubing stacked with threads cleaned and gleaming in the late sun ready to be connected and run down hole.

Galilee Energy has signed a Memorandum of Understanding (MoU) with APA Group, in a non-binding agreement seeking to connect the Glenaras Gas Project with east coast gas markets.

The terms of the MoU provide a framework for Galilee and APA to negotiate agreements under which APA could potentially design, develop and operate the infrastructure to connect the Project and utilise APA’s existing assets to provide transport to multiple natural gas markets on the east coast.

The agreement could also enable further discussions regarding documentation to govern the potential pipeline proceeding to detailed design, route selection and costings.

APA’s initial concept is to potentially design and develop a pipeline from the project to the Cooladdi compressor station on the South West Queensland Pipeline (SWQP), also known as the Galilee Basin Pipeline.

The SWQP is owned and operated by the APA Group. The Cooladdi compressor station is approximately 420km south of the Glenaras Project area.

Galilee’s Managing Director, David Casey, noted that the signing of the agreement was an important step in the potential commercialisation of the Glenaras Gas Project.

“The MoU with APA is another step forward in the potential path to commercialising our extensive gas resource in the Galilee Basin,” Mr Casey said.

“As a leading Australian energy infrastructure business, APA’s east coast gas grid plays a critical role in potentially enabling the flexible and safe transportation of natural gas, which is why APA is a compelling fit with Galilee’s strategy to develop Glenaras in a sustainable manner.

“Giving potential gas customers confidence in the deliverability of gas from Glenaras is incredibly important.

“Potentially connecting our project to the SWQP and the multiple links into pipelines interstate would add optionality to discussions with potential gas customers and could expand the commercial opportunities available to Galilee.

“Together with the project’s maiden reserve certification due in early 2023, continued planning on gas pipeline infrastructure could help provide a solid basis for progressing future gas sales agreements.”

The SWQP connects the Moomba gas hub in north east South Australia to the Wallumbilla Gas hub, allowing bi-directional flow of gas between Queensland and southern markets via the Moomba to Sydney Pipeline (MSP) and the Moomba to Adelaide Pipeline System (MAPS).

At Ballera, there is a connection to the Carpentaria Gas Pipeline which supplies gas to Mount Isa.

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