Basin review, Bowen Basin, Company news, Features, Gas, LNG, Markets, News, Newsletter, Onshore, People and policy, Pipelines, Projects, Queensland

Blue signs gas MOU with nickel project

The deal would see a portion of Blue’s Bowen Basin gas resource supplied to Queensland Pacific Metals’ (QPM) proposed nickel refining project in Townsville.

QPM is a subsidiary of Pure Minerals Limited looking to develop a new refinery that would process 600,000 t/a of laterite ore to produce 25,000 t of nickel sulphate and 3,000 t of cobalt sulphate, along with other products such as alumina.

The MOU follows another recent MOU between Blue and the North Queensland Gas Pipeline (NQGP), which would allow Blue’s Sapphire Block gas to be brought to market via the 391 km NQGP.

Blue’s Sapphire Block interests are located in ATP 814P in the Bowen, approximately 12 km from the Moranbah Gas Project, and have been assessed to contain more than 200 PJ of 3P reserves and 186 PJ of contingent resources.

Blue Chair John Ellice-Flint said the gas would underpin the new minerals business in Townsville.

“It underscores the vital relationship between access to energy for the mineral processing which underpins the gig economy, for the export industry and revenue businesses in Townsville and the state, together with jobs for the region both in developing Blue’s upstream gas resource and the downstream QPM processing facility,” he said.

Blue is also progressing the option of a southern pipeline through the Bowen Basin, having received approval from the Queensland Government for a pipeline survey licence earlier this year.

The company has reported its total gas resource in the Bowen Basin to be more than 3,000 PJ at high estimate.

For more information visit the Blue Energy website.

If you have company news you would like featured in Gas Today contact Managing Editor David Convery at

Leave a Reply