Blue Energy has signed a memorandum of understanding (MoU) with Queensland Pacific Metals Energy (QPME) to facilitate gas supply into its Moranbah Gas Project (MGP) plant.
The MGP, located 400km south of Townsville and 170km west of Mackay, previously was a joint venture between Arrow Energy and AGL.
In April 2023, QPME announced it entered into a conditional agreement to acquire the plant, which will be used for its Townsville Energy Chemicals Hub (TECH) project at Lansdown Eco-Industrial Precinct.
This new agreement will see Blue Energy commercialise its pilot gas flow from its 100 per cent held Sapphire Block in ATP 814, which is only 3km away from the MGP.
The MoU is the first step for Blue and QPME to development gas reserves in the North Bowen Basin in Queensland.
Blue Energy managing director John Phillips said the company is looking forward to offer its pilot gas to QPME on an as available basis.
“This will ensure pilot gas produced by Blue is fully utilised and can assist QPME in meeting its gas supply targets on becoming the new owner of the MGP,” Phillips said.
“It allows Blue a very cost effective path to bringing more new gas supply into the domestic market, efficiently, cost effectively and in a timely manner.
“Blue looks forward to working constructively with QPME to fully realise the potential of the North Bowen Basin gas resource.”
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