Non-binding MoU agreed as Galilee progresses towards maiden gas reserve booking in early 2023
Galilee Energy (ASX:GLL) (‘Galilee’ or ‘the Company’) is pleased to advise that a non-binding Memorandum of Understanding (MoU) has been signed with leading Australian energy infrastructure business, APA Group (‘APA’), (through its wholly owned subsidiary APT Management Services Pty Limited)) with regardsto a potential pipeline to connect the Glenaras Gas Project (‘Project’) to east coast gas markets.
The terms of the non-binding MoU provide a framework for Galilee and APA to negotiate agreements under which APA could potentially design, develop and operate the infrastructure to connect the Project and utilise APA’s existing assets 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’s initial concept is to potentially design and develop a pipeline from the Project to the Cooladdi compressor station on the South West Queensland Pipeline (‘SWQP’), (the Galilee Basin Pipeline). The SWQP is owned and operated by the APA Group. The Cooladdi compressor station is approximately 420 km south of the Glenaras Project area.
The SWQP connects the Moomba gas hub in north east South Australia to the Wallumbilla Gas hub, allowing bidirectional flow of gas between Queensland and southern markets via the Moomba to Sydney Pipeline (‘MSP’) and the Moomba to Adelaide Pipeline System (‘MAPS’). At Ballera, there is a connection to the Carpentaria Gas Pipeline which supplies gas to Mount Isa.
Galilee’s Managing Director, David Casey, noted that the signing of the non-binding 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. 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 sustainable manner.
“Giving potential gas customers confidence in the deliverability of gas from Glenaras is incredibly important. Potentially connecting our project to the SWQP and the multiple links into pipelines interstate would add optionality to discussions with potential gas customers 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.”
Source: Company Press Release