Blue Energy : Welcomes Federal Govt Support

MEDIA RELEASE

7 May 2021

Blue Energy welcomes Federal Government support for Bowen Basin Gas

Pipeline

Blue Energy Limited (Blue Energy) welcomes today's announcement by Federal Energy Minister, The Honourable Angus Taylor, that the Federal Government is committing 2021 budget funds ($5 million to match Queensland Government expenditure 1:1) for the pre-feasibility study of a single large capacity gas pipeline from Moranbah in the North Bowen Gas Basin to connect to the existing east coast gas grid.

Blue Energy welcomes these initiatives, together with the release of the interim National Gas Infrastructure Plan which identifies key geologic basins for development of new gas supply for east coast gas customers.

The announcement highlights the importance of the North Bowen Basin Gas Province as a solution to the east coast supply shortfall, because of the following North Bowen Basin characteristics:

1. It has a large-scale gas resource - 15,000 PJ of gas resource already identified.
2. It has been in production (servicing the local Townsville market with small diameter pipeline) for over a decade.
3. It has been geologically de-risked by hundreds of coal seam gas wells, extensive coal mine drilling data and degassing operations and the decade long history of continuous gas production.
4. It is development ready and only requires a pipeline link to the southern markets.
5. With an aggressive build schedule, gas could be flowing to east coast customers well before 2026.

This announcement demonstrates that the Federal Government is acutely aware of the real potential for a significant gas shortfall on the east coast as early as 2024 (as noted by the ACCC and previously by Blue Energy) and that new northern gas production, including from the North Bowen Basin, plays a critical role in the new gas infrastructure build-out to develop a long term stable domestic gas supply portfolio for the nation.

The completion of the final National Gas Infrastructure Plan will see incorporation of the North Bowen Basin gas resources into the national gas infrastructure priority spend for east coast supply.

This announcement again highlights the ongoing commitment by the Federal Government to work with the Queensland Government to develop this important, already discovered, yet under-developed gas basin, as a solution to the east coast gas crisis for manufacturers and domestic gas users. Blue continues to bolster these governmental efforts by continuing to sign up new domestic gas off-takers.

By Authority of the Board per:	John Phillips
	Managing Director
	Blue Energy Limited

About Blue Energy Limited

Blue Energy is a Brisbane Based Australian exploration company focused on the discovery and development of gas resources in the North Bowen, Galilee, Beetaloo/ Greater McArthur Basins in the Northern Territory. Blue has independently certified gas reserves and resources of 71 PJ of 2P reserves; 298 PJ of 3P reserves and 4,129 PJ of Contingent Resources as assessed by Netherland Sewell and Associates of Dallas Texas.

e [e-mail]

ABN 14 054 800 378

w www.blueenergy.com.au