Galilee Energy Ltd., Brisbane, has signed a non-binding memorandum of understanding (MoU) with pipeline infrastructure combine APA Group for potential construction of a pipeline to connect Galilee’s Glenaras gas project in Galilee basin near Longreach in central eastern Queensland to Australia’s east coast markets.
Terms of the MoU provide a framework for the companies to negotiate agreements under which APA could potentially design, develop, and operate the infrastructure to connect Glenaras and use APA’s existing assets to transport gas to multiple markets. Further discussions would be held leading to design, route selection, and valuations.
APA’s initial concept is to bring a 420 km line south from Glenaras to the Cooladdi compressor station of the existing South West Queensland Pipeline (SWQP). SWQP connects Moomba gas hub in South Australia to Wallumbilla hub in Queensland and enables bi-directional flow of gas between Queensland and southern markets via the Moomba to Sydney trunkline and the Moomba to Adelaide pipeline system. At Ballera in southwest Queensland, there is a connection to the Carpentaria gas pipeline which supplies gas to Mount Isa.
Linking Glenaras to the pipeline network adds optionality to discussions with potential gas customers and expands Galilee’s commercial opportunities, the company said.
