Galilee signs gas supply MoU with Energy Queensland
Sydney-listed Galilee Energy has signed a non-binding memorandum of understanding (MoU) with the Queensland government-owned Energy Queensland (EQL) to advance natural gas supply and explore the development of a hydrogen facility in the state's central west, it said on November 21.
The MoU establishes a framework for Galilee and EQL to engage in preliminary discussions regarding the supply of natural gas to the Barcaldine power station. Additionally, the two parties will collaborate on the feasibility of developing a hydrogen facility at the site.
Galilee has welcomed recent initiatives by the Queensland and Australian governments to prioritise gas supply in the Galilee basin. The company's executive chairman, Ray Shorrocks, commended the Queensland government for its A$21mn ($13.5mn) Frontier Gas Exploration Programme, specifically targeting the Galilee and Bowen basins. Galilee intends to submit an application under this programme before the January 31, 2024 deadline.
Furthermore, Shorrocks acknowledged the Australian government's Future Gas Strategy discussion paper, which identifies the Galilee basin as a potential source of future gas supply until 2050. He applauded the Australian government for releasing this strategy and highlighting the importance of gas supply and demand.
Galilee said it plans to provide feedback on the Future Gas Strategy and urge the Australian government to reinstate the strategic basin approach. The company believes that this approach, in collaboration with the Queensland government, could effectively encourage the appraisal and development of future gas supply. Submissions on the Future Gas Strategy are due by November 27.
Galilee holds a significant position in the Glenaras gas project within Queensland's Galilee basin.