Elixir Energy Ltd. has taken a major step toward commercialising its northern Taroom Trough gas assets, announcing it has entered an early works agreement with APA Group to complete the feasibility work for the project.
The agreement will investigate the most efficient and cost-effective pathway to transport gas from Elixir’s planned Lorelle pilot project to the Wallumbilla gas hub (WGH).
The WGH serves as the central exchange for wholesale gas trading and a vital interconnection point for nine major pipelines in Queensland, linking gas supply from the Surat and Bowen Basins to domestic markets and liquefied natural gas (LNG) export facilities.
The 12-week feasibility study will compare two primary pipeline routes: a 25 kilometre connection to the existing Roma to Brisbane Pipeline or a 50 kilometre direct line to Wallumbilla.
The study will evaluate capital and operating costs, regulatory approvals, and the overall timeframe for commissioning. The findings will include a Class-V capital estimate and a Level-1 schedule, which are key requirements for progressing the project into the pre-Front-End Engineering Design (pre-FEED) stage.
Beyond natural gas, the study will help define the strategy for monetising associated condensate and light oil resources, which the company intends to supply to Queensland’s refining market.
This infrastructure work coincides with preparations for flow testing at the Lorelle-3H appraisal well, scheduled to commence in June 2026. The results from this testing will be pivotal for a potential maiden Reserve booking.
Lorelle-3H is a watershed moment for the Taroom Trough, the company noted, highlighting it is the first horizontal well to be tested outside of Shell’s nearby acreage.
By early definition of these transport pathways, Elixir aims to ensure its 2.8 TCF of independently certified contingent gas resources can be brought to market with speed and capital discipline.
Elixir is the largest acreage holder in the Taroom Trough in Queensland’s Bowen Basin.
The Taroom Trough is a multi-TCF Basin Centred Gas Play and is highly advantaged by its immediate proximity to the Wallumbillia Gas Hub, multiple gas pipelines, the nearby 25 mtpa of LNG export infrastructure, multiple operating refineries and sitting amongst the mature and well serviced onshore gas industry of Queensland.
