Galilee Energy has signed a non-binding memorandum of understanding (MoU) with leading Australian energy infrastructure business, APA Group with regards to a potential pipeline to connect the Glenaras Gas Project to east coast gas markets.
The terms of the non-binding MoU provide a framework for Galilee and APA Group to negotiate agreements under which APA Group could potentially design, develop and operate the infrastructure to connect the Glenaras Gas Project and utilise its existing assets in order to provide transport to multiple natural gas markets on the east coast.
The MoU could enable further discussions regarding documentation to govern the potential pipeline proceeding to detailed design, route selection and costings.
APA Group’s initial concept was to potentially design and develop a pipeline from the Glenaras Gas Project to the Cooladdi compressor station on the South West Queensland Pipeline (SWQP).
The Cooladdi compressor station is located approximately 420 km south of the Glenaras Project area.
Galilee’s managing director, David Casey, noted that the signing of the MoU is an important step in the potential commercialisation of the Glenaras Gas Project.
“The non-binding MoU with APA is another step forward in the potential path to commercialising our extensive gas resource in the Galilee Basin,” said Casey.
“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 suitable manner.
“Giving potential gas customers confidence in the deliverability of gas from Glenaras is incredibly important.”
The potential to connect the Glenaras Gas Project with the SWQP and the multiple links into pipelines interstate would add optionality to discussions with potential gas customer 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,” said Casey.
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