Galilee Energy (ASX:GLL) has executed a non-binding Memorandum of Understanding with Queensland Government-owned Energy Queensland Limited (EQL) for the supply of natural gas and to progress the development of a hydrogen facility in the state’s central west.

The terms of the non-binding MoU provide a framework for Galilee and EQL to progress preliminary discussions for the supply of natural gas to the Barcaldine Power Station, in addition to collaborating on the development of a hydrogen facility at the site.

Galilee Energy’s Glenaras Gas Project is one of the largest uncontracted gas resources in eastern Australia with an independently certified 3C Contingent Resource of more than 5,000 petajoules.

The company has also welcomed multiple actions by the Queensland and Australian Governments to focus on gas supply in the Galilee Basin.

Applications have opened for the $21 million Queensland Government Frontier Gas Exploration Program in the Galilee and Bowen Basins to accelerate new gas supply.

Additionally, the Australian Government’s Future Gas Strategy has identified the Galilee and Bowen Basins as ‘frontier basins’ and a key focus for the development of new gas supply crucial for energy security.

Galilee Energy plans to submit an application to the Frontier Gas Exploration Program and will soon provide a comment on the Future Gas Strategy.