The companies have signed a Memorandum of Understanding in Perth following the 25th Meeting of the Australia-Korea Joint Committee on Energy and Minerals.

KOGAS is a strategic partner and shareholder of Blue Energy and has an option to farmin to Blue’s Galilee Basin (ATP 813P) and northern Bowen Basin (ATP 814P) permits.

Blue Energy and KOGAS will form a joint working group to identify potential opportunities for the development and operation of micro-LNG and CNG facilities with the aim of providing a clean, environmentally-friendly alternative to existing fuels.

KOGAS Executive Vice President Seok Hyo Jang said “Despite having very small gas resources of its own, Korea has successfully built an ever-increasing natural gas vehicle sector, currently with over 20,000 buses and trucks using natural gas as a fuel, either in the form of LNG or CNG.

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“There are obvious environmental advantages to these fuels, and we hope that our experience and knowledge in this sector can assist Australia to utilise its vast onshore natural gas resources, particularly in Eastern Australia,” Mr Jang said.

Blue Energy Chairman Peter Cockcroft said “KOGAS and Blue Energy have a vision for the creation of a ‘green highway’ where environmentally friendly natural gas powered vehicles, both cars and trucks, can travel uninhibited by fuel availability constraints up and down the east coast of Australia.”

The utilisation of natural gas vehicles within Australia is extremely low when compared to other parts of the world, and with the abundance of natural gas within Australia, Blue Energy predicts that the development of this market will deliver significant benefits to Australia, both environmentally and economically.

Australia’s heavy duty road transport sector is well suited to the use of natural gas vehicles. The abundance of natural gas, particularly Coal Seam Gas (CSG) in Australia, is ideal for the production of LNG and CNG for natural gas vehicles, Blue Energy has said.