Queensland Funds Bowen Basin Pipe Pre-Feasibility Study
The Queensland government will invest A$5mn towards a pre-feasibility study for a new 500-km gas pipeline to connect gas reserves in the Bowen Basin to the east coast domestic market and overseas customers, it said on August 20.
The study will seek to analyse gas prospectivity and sources of fugitive emissions in the area; identify opportunities for industry involvement in the development of the pipeline; and determine feasibility and best pathway for the infrastructure. It is anticipated the study will take approximately 12 months to complete, the government said.
“The Bowen Basin, which has traditionally focused on coal production, has the potential to bring more gas to Queensland’s domestic and export markets – both by opening up areas for new gas production and capturing unutilised gas from underground mines,” the government said.
The Queensland government said it will seek a further A$5mn in matched funding from the Australian government towards the pre-feasibility study.
Sydney-listed Blue Energy in a statement published on August 21 welcomed the announcement. "The Bowen Basin contains independently verified gas resources of up to 15,000 petajoules which if fully developed via a new southern pipeline, could supply the east coast domestic gas market for up to 30 years,” the company said. “In doing so, it would act to lower east coast gas prices to end users, and importantly, enable manufacturers and gas users to enter long term gas contracts and give certainty of gas supply and price, for decades.”
Brisbane-based Blue has 3,000 petajoules of gas resource in its 100% owned tenements around Moranbah. It currently has production licence applications with the Queensland government with the view to supply gas into the domestic markets, both into Townsville and to the south, once the southern pipeline is built.
“Blue looks forward to additional detail on the scope of the Bowen gas pipeline study being proposed by the government, and stands ready to assist,” it said.