Metgasco, a hydrocarbon exploration and development firm, has signed a memorandum of understanding with BP Australia to conduct a feasibility study with respect to the supply of more than 15 peta joules per year of coal seam gas from its Clarence Moreton basin operations to BP.

As part of the agreement, Metgasco and BP intend to co-operate in conducting a feasibility study for the extension of the planned Casino to Ipswich gas pipeline to BP’s refinery facilities at the Port of Brisbane.

Metgasco intends to immediately commence field development studies to determine the technical and commercial feasibility of achieving this gas supply outcome.

BP’s Bulwer Island facility refines crude oil to manufacture petroleum products. The refinery plant includes an integrated cogeneration facility that requires gas to produce electricity to run the refinery.

David Johnson, managing director of Metgasco, said: We are very pleased to be working with BP, a company that has a reputation for investing in the development of infrastructure required to secure Australia’s energy future.