Premier Annastacia Palaszczuk has announced that the Queensland Government will invest $5 million in a concept study to investigate the feasibility and options for a new 500km gas pipeline to connect reserves in the Bowen Basin to the east coast of Queensland.

The concept 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 expected that the study will take approximately 12 months to complete.

Brisbane-based Blue Energy Limited has regularly commented on the ‘enormous’ gas resource that has already been discovered in the Northern Bowen Basin. The Basin has been producing gas north to Townsville manufacturers and electricity generators via the 273mm diameter North Queensland Gas Pipeline, since 2005.

The Bowen Basin contains independently verified (ACCC Jan 2020) gas resources of up to 15,000 petajoules (PJ) which if fully developed via a new southern pipeline, could supply the east coast domestic gas market for up to 30 years, says Blue Energy.

Moreover, if progressed, Blue Energy highlights that the new pipeline 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.

“This, in turn, would encourage expansion and growth of existing manufacturers and entry of new manufacturers to establish themselves in Queensland. This will mean more jobs in Queensland,” the oil and gas exploration company said in a statement.

Additionally, if given the go-ahead, the pipeline has the potential to create more than 1000 construction jobs.

Blue Energy has 3,000 PJ of gas resource in its 100 per cent-owned tenements around Moranbah (see Figure 1).

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.

Figure 1: Blue Energy Limited’s acreage in the Bowen Basin. Image courtesy of Blue.