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- Blue Energy (BLU) has inked its second gas deal for its Northern Bowen Basin assets in Queensland
- The company has signed a deal with ASX-listed Origin Energy (ORG) to supply gas from its Northern Bowen Basin ATP814 coal seam gas tenure
- Under the ten-year deal, Blue energy will supply 300 petajoules of gas Wallumbilla in southern Queensland
- On the market this morning, Blue Energy is up 27.6 per cent and is trading at 9.7 cents per share
Blue Energy (BLU) has inked its second gas deal for its Northern Bowen Basin assets in Queensland.
The company has signed a deal with ASX-lister Origin Energy (ORG) to supply gas from its Northern Bowen Basin ATP814 coal seam gas tenure.
Under the ten-year deal, Blue energy will supply 300 petajoules (PJ) of gas to Wallumbilla in southern Queensland.
The agreement will help underpin the proposed gas pipeline from the North Bowen Basin into Wallumbilla and the development of the Bowen Basin gas resource
Notably, the deal is similar to the one that signed with EnergyAustralia in December.
The new deal brings the total of gas under a head of agreement to 400 PJ.
Blue Energy’s independent reserve certifier, Netherland Sewell and Associates of Dallas Texas (NSAI) has identified areas where the company can develop its resources. These areas are in-line with Blue’s production licence applications lodged and are currently being processed by the Queensland Government.
The ATP814 permit has been assessed by NSAI to contain 3248 PJ of contingent resource around Moranbah.
“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,” Managing Director John Phillips said.
“This prioritisation continues to give east coast gas buyers the confidence to secure long term gas supply agreements from this producing gas basin,” he added.
On the market this morning, Blue Energy is up 27.6 per cent and is trading at 9.7 cents per share at 11:36 am AEDT.
