Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has signed a non-binding Memorandum of Understanding (MoU) the Australian Gas Infrastructure Group (AGIG) to investigate the potential development of gas infrastructure assets in Queensland’s Taroom Trough.
This infrastructure would support the possible future production of gas from Elixir’s Grandis Gas Project in the Taroom Trough.
The MoU has been executed with AGI Development Group Pty Ltd, part of AGIG, which is one of the largest gas infrastructure businesses in Australia.
Key elements that the parties will initially consider will be in the areas of a new gas transmission pipeline to the Wallumbilla Hub; processing and compression facilities; and gas storage facilities.
“Confidence booster”
Elixir’s managing director Neil Young said: “We are very pleased to enter into a MoU with a company of the calibre of AGIG.
"This serves as an initial framework to investigate how the massive gas resources of Project Grandis – and potentially the broader Taroom Trough – might be most effectively brought to market.
"Furthermore, it is a significant and timely confidence booster in the vast potential of the gas assets in this region from a very well regarded third party.”
The parties may seek to bring in parties such as the owners of other complementary upstream assets and Government bodies into this process.
About AGIG
AGIG owns and operates infrastructure that delivers gas to more than two million Australian homes, businesses, manufacturers, large industrials and electricity generators.
Key transmission and storage assets include the 1,600-kilometre Dampier to Bunbury Natural Gas Pipeline and the Tubridgi Gas Storage Facility in Western Australia, and the 140-kilometre Wide Bay Gas Pipeline in Queensland.