Galilee Energy signed a Memorandum of Understanding (MoU) with APA Group for a possible pipeline to link the Glenaras Gas Project to east coast gas markets.
In a statement, Galilee Energy said the non-binding MoU provides Galilee Energy and APA a framework within which to negotiate agreements that would allow APA to potentially design, develop, and operate the infrastructure needed to connect the Project and use its current assets to provide transportation to numerous natural gas markets along the east coast.
Galilee Energy added that the MoU might allow more in-depth discussions about the paperwork governing the potential pipeline proceeding design, route choice, and cost estimation.
One of APA’s initial concepts is a pipeline from the Project to the Cooladdi compressor station on APA Group’s South West Queensland Pipeline (SWQP).
According to Galilee Energy, the SWQP links the Moomba gas hub in South Australia to the Wallumbilla gas hub, enabling bidirectional gas flow between Queensland and southern markets through the Moomba to Sydney Pipeline (MSP) and the Moomba to Adelaide Pipeline System (MAPS). Meanwhile, the Carpentaria Gas Pipeline, which delivers gas to Mount Isa, has a connection at Ballera.
Galilee Energy Managing Director David Casey said the signing of the non-binding MoU is a crucial step in the Glenaras Gas Project’s possible commercialisation.
“The non-binding MoU with APA is another step forward in the potential path to commercialising our extensive gas resource in the Galilee Basin. As a leading Australian energy infrastructure business, APA’s east coast gas grid plays a critical role in potentially enabling the flexible and safe transportation of natural gas, which is why APA is a compelling fit with Galilee’s strategy to develop Glenaras in a sustainable manner,” Casey stated.
According to Casey, it is crucial to instill confidence in Glenaras’ ability to deliver gas to potential customers.
“Potentially connecting our project to the SWQP and the multiple links into pipelines interstate would add optionality to discussions with potential gas customers and could expand the commercial opportunities available to Galilee. Together with the project’s maiden reserve certification due in early 2023, continued planning on gas pipeline infrastructure could help provide a solid basis for progressing future gas sales agreements,” he added.
