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- Blue Energy (BLU) has welcomed the Morrison government’s proposed “gas-led recovery” initiative to stimulate the pandemic economic bounceback
- The government has identified the North Bowen and Galilee Basins in Queensland and the Beetaloo Basin in the Northern Territory as the key gas supply areas to stimulate the economic recovery
- Blue Energy has holdings in each of the three priority production areas, and certified gas reserves and resources in the North Bowen and Galilee Basins
- Blue believes the Bowen Basin, if connected via pipeline to the cities of the eastern seaboard, could supply the market for up to 30 years with cheap gas
- Along with the Palaszczuk government’s promise to invest $5 million on a pipeline route study from the North Bowen Basin to the east coast, Blue has a much increased impetus to develop its Bowen Basin resources
- Blue Energy is trading 1.49 per cent higher at 6.8 cents
Blue Energy (BLU) has welcomed the Morrison government’s proposed “gas-led recovery” initiative to stimulate the pandemic economic bounceback.
It’s a gas
The government has identified the North Bowen and Galilee Basins in Queensland and the Beetaloo Basin in the Northern Territory as the key gas supply areas to stimulate the economic recovery.
By securing long-term gas supplies, the government believes it can guarantee the future of manufacturing jobs in Australia, while providing cheap energy.
Blue Energy has holdings in each of the three priority production areas, and certified gas reserves and resources in the North Bowen and Galilee Basins.
The company claims to have been “a long-time advocate for the development of these critical gas resources, which have been hamstrung by the lack of critical gas infrastructure.”
Blue believes the Bowen Basin, if connected via pipeline to the cities of the eastern seaboard, could supply the market for up to 30 years with cheap gas.
Blue’s Bowen Basin holdings contain resources of around 3000 petajoules.
Along with the Palaszczuk government’s promise to invest $5 million on a pipeline route study from the North Bowen Basin to the east coast, Blue has a much increased impetus to develop its Bowen Basin resources.
The next steps
Blue believes there will be many benefits to the development of the Bowen Basin aside from the provision of cheap gas for the industry.
The company states gas is “essential as a feed stock for the manufacture of pharmaceuticals, plastics, explosives, bricks, glass, fertiliser, PPE, and many more products, all of which are integral parts of Australia’s modern economy.”
Blue also believes gas will be a transition option as electricity generators move away from coal.
With firming government support, Blue Energy and other gas providers are well positioned to capitalise on Australia’s gas-led recovery.
Blue Energy is trading 1.49 per cent higher at 6.8 cents at 3:20 pm AEST.
