Blue Energy & Origin Energy Sign Heads of Agreement for New Gas Supply

Source: 3/19/2021, Location: Not categorized

Blue Energy Limited (“BLU”) is pleased to advise that it has executed a non-binding Heads of Agreement (HOA) with Origin Energy Limited (“ORG”) for the supply of up 300 PJ of gas at Wallumbilla over 10 years from Blue Energy’s Northern Bowen Basin ATP814 coal seam gas tenure.

Key Points
Annual Contract Quantity: 20-30 PJ per annum
Term: 10 years
Indicative Start Date: 2024

This is the second such HOA executed by Blue Energy which facilitates North Bowen Basin gas to be delivered into the main East Coast domestic market to the south from Moranbah. As previously announced (ASX: BLU 2 Dec 2020), Blue Energy and EnergyAustralia signed a similar agreement for the delivery of 100 PJ of gas from the North Bowen basin into Wallumbilla. This now brings the total gas under HOA from Blue Energy’s North Bowen Basin acreage to 400 PJ’s.

This latest agreement with Origin represents another foundation gas volume that will contribute to the underpinning of the proposed gas pipeline from the North Bowen Basin into the Wallumbilla “Hub”, and for the development of Blue Energy’s North Bowen Basin gas resources.

Blue Energy’s independent reserve certifier, Netherland Sewell and Associates Inc of Dallas Texas (NSAI) has identified the areas where the Company can develop its resources, and these areas coincide with Blue’s Production Licence Applications lodged with and currently being processed by the Queensland Government.

Blue Energy’s 100% owned permit, ATP814, has been assessed by NSAI to contain 3,248 PJ+ of Contingent Resource (recoverable) around Moranbah. In addition to this volume, there is currently 71 PJ of 2P reserves and 298 PJ of 3P reserves in close proximity to the existing gas field infrastructure in the North Bowen Basin.

Blue Energy’s Managing Director Mr John Phillips commented that “the momentum for development of the North Bowen Basin gas resource for domestic east coast gas consumers continues to build, following the high grading of this significant gas resource by both Federal and State Governments.

This prioritisation continues to give east coast gas buyers the confidence to secure long term gas supply agreements from this producing gas basin.”

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