Queensland Pacific Metals signs gas supply chain MOU for TECH Project

Queensland Pacific Metals Ltd has signed a memorandum of understanding (MOU) with Transition Energy Corporation Pty Ltd and North Queensland Gas Pipeline (NQGP) to develop a dedicated gas supply chain from the northern Bowen Basin to QPM’s TECH Project. The MOU outlines the framework for the parties to negotiate gas supply and transportation agreements and work together to complete studies for the feasibility, design, approvals and construction of the initial gas supply chain, due to be commissioned by the end of 2023. Promisingly, QPM has also highlighted the opportunity to significantly reduce carbon emissions and the potential to make TECH Project a zero-carbon nickel producer. Strategic plan The strategic plan to be investigated and assessed by the parties is for: Natural gas is to be supplied from resources currently available in the northern Bowen Basin including those on operating metallurgical coal mines. Transition Energy intends to assess the potential to drain and harvest gas that would otherwise be flared or vented into the atmosphere. Once produced, the gas would be transported to a new centralised gas processing and compression facility to be located in the region. When processed, the gas would be transported to and injected into, the NQGP for transporting to a let-down facility to be located at the Lansdown Eco Industrial Park adjacent to the TECH Project. QPM CEO Stephen Grocott said: “I am delighted to have signed this agreement with such high-quality partners and I look forward to working with them as part of the completion of our Definitive Feasibility Study. “In particular, I am pleased by the potential to help create Australia’s first producer of net zero carbon nickel.” Potential for zero-carbon nickel production QPM’s TECH Project is estimated to require 10 petajoules per annum of gas once in steady-state operation. The company had previously commissioned Minviro Ltd to produce an interim report which assesses the greenhouse gas emissions arising from the TECH Project. The study showed that CO2 emissions from the TECH project would be 36% lower than the industry average. Importantly, the study also highlighted the opportunity for further reductions in greenhouse gas emissions that could result if the TECH Project’s gas supply was sourced by harvesting gas from that which is currently being flared or vented from operating mines which could make the project a zero-carbon nickel producer. - Ephrems Joseph