Budding gas producer Blue Energy (ASX: BLU) has announced its support for the federal government’s National Gas Infrastructure Plan (NGIP) for a new gas supply to the Queensland and Northern Territory basins, saying it will aligns with company assets and drilling plans.
The NGIP 2021 report, released ahead of the weekend, identifies a long-term development path for gas supply and infrastructure over the next 20 years. It highlights the priority actions required to alleviate the forecast of gas shortages in the South as well as ways to keep costs lower and internationally competitive.
The report identifies infrastructure in the North Bowen, Galilee and Beetaloo basins as priorities – all areas in which Blue Energy has assets.
It also expects the first indicative gas production to the South North Bowen Basin market in 2025, which matches Blue’s existing contractual commitments with Origin Energy (ASX: ORG) and Energy Australia for the delivery of domestic gas in Wallumbilla.
In addition, the report supported the construction of a 200 terajoules per day multi-user pipeline from Bowen to Wallumbilla and identified the joint feasibility study currently being carried out by Queensland and the federal governments.
NGIP aligns with Blue’s North Bowen drilling plans
Blue previously announced an appraisal program including a drilling and test program to build 2P reserves under its 100% owned ATP 814P license.
This work is expected to underpin the non-binding gas supply agreements that have been signed with Origin, Energy Australia and Queensland Pacific Metals over the past year.
The company praised the synergies between its assessment program and the NGIP.
âBlue’s 2P reserve construction program will support the economics of the construction of the Bowen gas pipeline which is required between Moranbah and the Wallumbilla interconnector. Blue is pleased to see the federal government, through the NGIP, demonstrate its support for this critical gas infrastructure, âhe said.
Blue said he would also participate in the non-binding expression of interest process that opened with the federal government on Monday.
Blue Chief Executive Officer John Phillips said the company was delighted to see strong support from the federal government for new infrastructure and natural gas supply, targeting the very gas basins where it has significant gas assets. exploration, existing gas reserves and large established gas resources.
“Planning is well advanced for the drilling of Blue’s assessment program in ATP814P, which NGIP says is integral to accelerating North Bowen’s gas supply,” he added.
âThe well design is almost complete, after which the long lead items can be ordered and the rig selection process can begin. “
The critical importance of natural gas for Australia
Blue also praised the government’s support for the expedited delivery of critical projects in the report, noting how Federal Energy Minister Angus Taylor stressed the critical importance of natural gas to meeting Australia’s needs in food production, manufacturing, industry, exports and energy.
“Mr. Taylor notes the dire situation of European gas supplies and the price impacts and the importance of unlocking new gas supplies for the east coast of Australia as supplies from the Bass Strait decline rapidly,” he said. added the company.