Oil and Gas News

Blue Energy closes in on Wallumbilla deal with Origin

Blue Energy has executed a 10-year agreement with Origin Energy to supply 300 petajoules (PJ) of gas from its Northern Bowen Basin coal seam tenure in Queensland to Wallumbilla.

The non-binding heads of agreement (HOA), the second executed by Blue Energy, facilitates the delivery of North Bowen Basin gas into the main east coast domestic market to the south of Moranbah.

In December last year, Blue Energy and EnergyAustralia signed a similar agreement for the delivery of 100 PJ of gas from the North Bowen Basin into Wallumbilla.

With the latest agreement, it brings the total gas to be delivered from Blue Energy’s North Bowen Basin acreage to 400 PJ.

Blue Energy reported that the Origin agreement represented another foundation gas volume that would contribute to underpinning the proposed gas pipeline from the North Bowen Basin into the Wallumbilla hub.

Managing director John Phillips said the momentum for development of the North Bowen Basin gas resource for domestic east coast gas consumers continued to build.

“Following the high grading of this significant gas resource by both federal and state governments, this prioritisation continues to give east coast gas buyers the confidence to secure long term gas supply agreements from this producing gas basin,” Phillips said.

Netherland Sewell and Associates (NSAI) has identified the areas where the company can develop its resources, which coincide with lodged production licence applications that are being processed by the Queensland Government.

Blue Energy’s 100 per cent owned permit, ATP814, has been assessed by NSAI to contain 3248 PJ of contingent resource (recoverable) around Moranbah.

In addition to this volume, there is currently 71 PJ of 2P reserves and 298 PJ of 3P reserves in close proximity to the existing gas field infrastructure in the North Bowen Basin.

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