BRISBANE: Blue Energy Limited has signed a non-binding MOU with Queensland Pacific Metals Pty Ltd (QPM) to facilitate supply of a portion of Blue Energy’s North Bowen Basin gas resources.

QPM is a wholly owned subsidiary of Pure Minerals Limited, who is focussed on developing a battery chemicals refinery to produce nickel and cobalt sulphate for the emerging EV sector.

This announcement comes in quick succession after the previously announced non-binding MOU between Blue Energy and North Queensland Gas Pipeline Pty Ltd (NQGP) who own the 391km onshore natural gas pipeline infrastructure which currently transports gas from the existing Moranbah Gas Project in the Bowen Basin to power and industrial users in Townsville, Queensland.

Blue Energy Chairman, John Ellice-Flint, said, “Blue is delighted to be able to offer our gas to underpin the development of a new domestic mineral processing business in Townsville, undertaken by another Australian owned company. It underscores the vital relationship between access to energy for the mineral processing which underpins the gig economy, for the export industry and revenue for 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.”

New domestic gas supply for this proposed new Townsville refining project would initially be drawn from Blue Energy’s ATP814P Sapphire Block which has been independently assessed to contain nearly 216PJ of 3P reserves and a further 186 PJ of Contingent Resource, and is located only 12 km from the existing Moranbah Gas Project gas processing facilities and less than 2 km from existing gas field gathering infrastructure.

The broader Northern Bowen Basin Gas Province has a discovered resource of approximately 15,000 PJ of gas which is sufficient to underpin the east coast domestic gas market for the next 30 years, based on current market conditions.

Blue’s component of this estimate is currently 3,248 PJ. Development of this Basin-wide resource and a single large diameter multi-user gas trunk line connection to the south would provide security of supply for east coast manufacturers and with this additional supply, will put downward pressure on prices. The additional gas availability would also generate the expansion of industry in the greater North Queensland region.