Bowen Basin gas pipeline pre-feasibility study underway

The two-year study will investigate the best options to build a pipeline from the Northern Bowen Basin to the major Queensland gas hub at Wallumbilla, connecting gas reserves in the Bowen Basin to domestic customers and exports.

Minister for Resources Scott Stewart said the $5 million study is part of more than $29 million in exploration sector assistance, announced last week, being invested over the next few years to support the resources sector.

"Through this year's budget, $9 million is being invested over the next few years to help explorers discover new economy minerals that are high in demand globally in the renewables and tech sectors," Mr Stewart said.

"In addition, to help keep explorers on the hunt, this year's budget also waives $9.8 million in state rent and we have also frozen exploration fees and charges until 1 July 2021.

"Just like we opened up the Surat Basin 10 years ago and developed a $70 billion onshore gas industry, the Bowen Basin has the potential to be a source of future gas projects and jobs for Queenslanders.

"My department has been on the ground engaging with the gas sector to scope the study and ensure it will meet their needs to help them with their future investment decisions."

Mr Stewart said gas is playing a critical role as a transition fuel to renewables and is one of the reasons why the Palaszczuk government is investing in the study.

"The study will also look at opportunities to capture gas emissions from coal mines in the Bowen Basin to contribute to supply and at the same time help reduce emissions," he said.

"The other, more important, reason is to help industry grow to drive future resource projects and the thousands of jobs that will flow from them."

If the study is successful, Mr Stewart said there would be potentially 1000 construction jobs available and countless opportunities in gas production and other industries which rely on affordable sources of gas.

"Like all resource projects in Queensland, the study will look at the feasibility of the gas infrastructure stacking up financially and provide a high-level guide on technical, environmental and other challenges which may impact timelines and construction costs," he said.

"Where appropriate, local suppliers would be given preference in line with the Queensland government's policies."

When the pipeline is completed, Blue Energy would under the proposed agreement supply 10 petajoules per annum for a contract life of 10 years.

This would, on current gas prices, be worth $690 million in revenue over the 10-year period. The proposed commitment of 100 PJ represents just 3 per cent of Blue Energy's gas resource in the Bowen Basin, which now stands at more than 3000 PJ.

Blue Energy managing director John Phillips supported the government's investment in the study.

"The gas potential of the Northern Bowen Basin has given buyers the confidence to seek secure long-term gas supply from this underdeveloped producing basin," Mr Phillips said.