Blue and APA sign MOU

The route of the proposed pipeline.

The route of the proposed pipeline.

Blue Energy and APA Group have signed a Memorandum of Understanding (MOU) to discuss the delivery of Blue’s Bowen gas to the southern market.

APA will work with Blue to explore the development of new pipeline infrastructure and other related midstream infrastructure required to bring the resources online.

“As an energy infrastructure provider, APA has been and will continue to be part of the solution of getting more gas to the market to put downward pressure on the price of gas to consumers,” said APA’s Managing Director Mick McCormack.

“We continue to work collaboratively with existing and new customers in providing innovative new gas transportation services, and we are pleased to be working with Blue Energy in the Bowen Basin project.”

Blue Energy Managing Director John Phillips said the further successful negotiation with APA would yield detailed design and preferred route options, together with cost estimates, and ultimately, would result in construction of new pipeline infrastructure to connect the Bowen Basin Gas Province to the southern manufacturing and residential demand centres.

“With the successful conclusion of these steps and project approval and FID, APA will become builder, owner and operator of the new infrastructure,” said Mr Phillips.

Blue currently has approximately 3,000 PJ of gas resource together with 71 PJ of 2P reserves and 298 PJ of gas and at production rates as high as 40 TJ/d.

Mr Phillips said that with the construction of the pipeline, Bowen Basin gas resources could be supplied and traded between Townsville and Hobart and all points in between, using APA’s East Coast Grid.

The announcement builds on APA’s MOU with Comet Ridge for the development of a pipeline connecting the Galilee Basin to APA’s East Coast Grid.

Developed independently of together, these projects would result in the construction of approximately 750 km of greenfield transmission pipeline and compression facilities for a total investment of around $800 million.

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