Blue Energy (ASX: BLU) is poised to expedite the development of its Sapphire gas project following a favorable court ruling in Queensland. The Land Court’s decision granted Blue Energy’s subsidiary, Eureka Petroleum, an amended Environmental Authority (EA) for the PL 1034 production license area, impacting Sapphire’s development. This project is strategically located near the Moranbah Gas Project (MGP), recently acquired by Queensland Pacific Minerals Energy (QPME).
With legal hurdles cleared, Blue Energy is collaborating with the Queensland Department of Natural Resources to finalize the PL 1034 production license, enabling the progression of this significant gas resource. Managing Director John Phillips emphasized the importance of the Bowen Basin tenements in strengthening East Coast gas supply, supporting local manufacturing, stabilizing the electricity grid, and creating jobs. The company is actively addressing surface facility maintenance issues and preparing to install replacement gear and new metering valves to enhance production testing on the Sapphire 5 and 6 lateral pilot wells.
Blue Energy has a non-binding agreement to supply gas to QPME’s planned nickel refinery in Townsville. QPME’s acquisition of MGP presents an opportunity for Blue Energy to leverage existing MGP infrastructure to fulfill this supply agreement. To this end, a non-binding Memorandum of Understanding has been executed to supply pilot gas from Sapphire to the Node 3 compressor station within the MGP, marking a significant step forward for the project.
