Pure Minerals Ltd (ASX:PM1) and wholly-owned subsidiary Queensland Pacific Metals Pty Ltd (QPM) have entered into a non-binding MoU with Blue Energy Ltd (ASX:BLU) regarding gas supply for the Townsville Energy Chemicals Hub (TECH) Project.
Blue Energy has ‘significant’ gas reserves in its ATP 814P Sapphire Block.
That company also has an MoU with North Queensland Gas Pipelines Pty Ltd regarding the potential use of the 391-kilometre onshore natural gas pipeline system, which transports gas from the Bowen Basin to Townsville.
This pipeline runs alongside the Lansdown Industrial Park, which is the proposed site for PM1's TECH project.
“An attractive energy solution”
Pure Minerals' managing director John Downie said: “We are delighted at this opportunity to work with Blue Energy to develop a mutually beneficial relationship that brings together two Australian companies striving hard to develop projects for the benefit of the Townsville and greater North Queensland region.
“Gas is an attractive energy solution for the TECH Project, particularly with the infrastructure available that is in close proximity to the Lansdown Industrial Park.”
A favourable energy solution is critical to the successful operation of the TECH Project.
Long-term, reliable supply is essential for the continuous operation of the plant.
In addition, energy is one of the major operating costs of the plant and QPM believes that gas potentially could be the most economical solution.