THE minerals sector has commended the Queensland government’s decision to invest $5m in a concept study to investigate the feasibility and options for a new transmission pipeline south, to connect the Bowen Basin’s gas reserves to the east coast of Queensland.

The commitment was contained in yesterday’s release of Queensland’s Economic Recovery Plan by the Premier Annastacia Palaszczuk.

Blue Energy has been a regular commentator on the gas resource that has already been discovered in the North Bowen Basin. This Basin has been producing gas north to Townsville manufacturers and electricity generators via the 273mm diameter North Queensland Gas Pipeline, since 2005.

The Bowen Basin contains independently verified gas resources of up to 15,000 PJ which if fully developed via a new southern pipeline, could supply the east coast domestic gas market for up to 30 years. In doing so, it could lower east coast gas prices to end users and enable manufacturers and gas users to enter long-term gas contracts and give certainty of gas supply and price.

“This in turn would encourage expansion and growth of existing manufacturers and entry of new manufacturers to establish themselves in Queensland,” John Phillips, managing director of Blue Energy Limited, said.

“This will mean more jobs in Queensland.”


Gas is not only used for low emission electricity generation, but is essential as a feed stock for the manufacture of pharmaceuticals, plastics, explosives, bricks, glass, fertiliser, PPE, and many more products.

Brisbane based Blue Energy has 3,000 PJ of gas resource in its 100% owned tenements around Moranbah. It currently has Production Licence Applications with the Queensland government with the view to supply gas into the domestic markets, both into Townsville and to the south, once the southern pipeline is built.

“Along with extending a lifeline to struggling Australian east coast manufacturers and helping rebuild the economy, post the COVID induced economic contraction, long-term gas supply from the Bowen Basin will be critical to firm up the large renewable energy project rollout mandated in Queensland,” Mr Phillips said.

“This will not only provide reliable… generation for the 50% renewable generation target set by the state, but could also provide a significant portion of the other 50% of electricity generation that is not renewable, and give the workers currently in the coal fired generation sector a ‘just transition’ to gas industry jobs.”