Queensland Pacific Metals Ltd (ASX:QPM) has partnered with Blue Energy Ltd to reduce the amount of waste gas in the Northern Bowen Basin, where QPM is developing the Townsville Energy Chemicals Hub (TECH) project to produce nickel and cobalt sulphate for the electric vehicle sector.
The partnership comes in the form of an MoU signed between QPM’s wholly-owned subsidiary QPM Energy (QPME) and Blue Energy for the supply of gas flared from test wells in Blue Energy’s ATP814P Sapphire Block in Queensland’s Bowen Basin.
Gas flared from the wells that would have ended up in the atmosphere will be diverted for industrial use instead under the MoU.
Large gas reserves
The Sapphire Block boasts significant gas reserves, including 67 petajoules (PJ) of 2P gas reserves, 253PJ of 3P gas reserves and 154PJ of 1C contingent gas resources.
It is adjacent to PL191, one of the tenements which makes up the Moranbah Project that is being acquired by QPME.
The Moranbah project is currently the only producing gas field in the NBB supplying gas to North Queensland consumers.
Quick fix
“This opportunity with Blue is one of several near-term opportunities which QPME is working on to get cost-effective gas into the Moranbah infrastructure system to increase overall production,” QPME chief executive officer David Wrench said.
“As soon as we take control of the Moranbah Project, we plan to execute and implement these opportunities expeditiously.”
The two parties have agreed to negotiate and enter into a gas supply agreement as soon as the Moranbah Project acquisition is completed.