Blue Energy says Federal Labor’s election pledge to fund new gas pipelines in Australia’s north would have a major effect on the market.
Previously, Bill Shorten announced Labor would scrap the Northern Australia Infrastructure Fund if victorious at the upcoming election and replace it with a new fund which would see $1.5 billion geared towards new gas pipelines in Queensland’s Galilee and Bowen basins, as well as the Beetaloo Basin in the Northern Territory.
The pipelines would be used to transport gas to Darwin and the east coast of Australia respectively in order to combat high domestic prices and anticipated supply shortages.
Blue Executive Chairman John Ellice-Flint was initially complimentary of the plan, and the company’s quarterly report released today reiterated that response.
“This is a game changer for the east coast gas market and has the potential to underpin domestic gas supplies (and the thousands of jobs that rely on gas being available) for the next 30-50 years,” the company said in its report.
Blue holds acreage in Beetaloo, Galilee and Bowen and said gas in the North Bowen Basin would be the quickest of the three regions to market due to the existence of already environmentally approved and producing projects.
“Blue has for many years been steadily and cost effectively adding to its North Bowen gas reserve and resource base in the belief that this gas province will play a significant part in the solution to the east coast gas imbalance,” the company said.
Blue reported its gas resource in the Bowen Basin to be more than 3,000 PJ at high estimate.
For more information visit the Blue Energy website.
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