Queensland Pacific Metals (QPM) has signed an agreement with Transition Energy Corporation (TEC) and North Queensland Gas Pipeline (NQGP) to develop a dedicated gas supply chain from northern Bowen Basin to QPM’s TECH project.
The non-binding memorandum of understanding brings together parties with experience in developing and operating natural gas projects with existing pipeline infrastructure already in place from Moranbah in the Bowen Basin to Townsville.
The strategic plan to be investigated and assessed by the companies is for: natural gas to be supplied from resources currently available in the northern Bowen Basin; and TEC intends to assess the potential to drain and harvest gas that would be flared.
Once produced, the gas would be transported to a new centralised gas processing and compression facility.
It will then be processed, with the gas then transported, and injected into the NQGP for transporting to a let down facility adjacent to the TECH project.
The TECH project will be a modern and sustainable producer of a critical chemicals for the emerging lithium ion battery and electric vehicle sector.
High grade nickel laterite ore will be imported from New Caledonia from a number of ore supply partners with long established mining operations.
Ore will then be unloaded at the Port of Townsville and transported by either road or rail to the TECH Project site at Lansdown.
As part of the MOU, the parties will outline the key operating agreements that need to be agreed between the companies; allocate key development work streams; align operating responsibilities; and workout a financing plan between QPM and TEC.
The TECH project is estimated to require 10 petajoules of gas once in steady operation.
TEC is developing a coal mine gas project in the northern Bowen Basin contributing to its vision of becoming Queensland’s next mid-tier gas company that offers gas supply for the northern region.
QPM CEO Stephen Grocott said he was delighted to have signed this agreement with such high-quality partners.
“I look forward to working with them as part of the completion of our definitive feasibility study. In particular, I am pleased by the potential to help create Australia’s first produce of net carbon nickel,” he said.
In addition, the NQGP operates the 391km pipeline that transports gas from the Moranbah gas project in the Bowen Basin to power and industrial users in Townsville.
Subscribe to Oil & Gas Today for all the latest industry news.