Name and Location
Northern Area Gas Scheme (Norgas) project, Australia.

Client
Armour Energy has signed a nonbinding heads of agreement with APA Group to collectively facilitate the transportation of up to 330 petajoules a year (PJ/y) of gas from Armour’s Northern Australian gas projects to various markets in Mt Isa, Sydney and Queensland.

Project Description
Stages 1 and 2 of the Norgas project will require the construction of 350 km of new gas transmission pipeline to transport up to 130 PJ/y of gas to Mt Isa from the project area, south of Burketown. This gas will target the Mt Isa market, with the balance to be transported through upgraded pipelines and pipelines facilities from Mt Isa to Ballera, in South West Queensland, to Southern markets and/or Wallumbilla, in southern Queensland.

Stage 3 will conceptually require the construction of new, or the upgrade of existing, gas transmission pipelines from Mt Isa to allow for the delivery of 200 PJ/y of gas to Gladstone, where it is forecast that the liquefied natural gas (LNG) industry will be short of gas during the early stages of the LNG export projects.

The fourth stage of market development will result in the interconnection of Queensland and the Northern Territory gas markets and pipelines, using APA Group’s existing network of pipelines, expanding the pipelines where required and building new pipelines to deliver gas from the Queensland and/or Northern Territory reserves.

Value
Not stated.

Duration
Armour is targeting February 2016 for the delivery of first gas from Armour’s north Queensland project area into the proposed Norgas infrastructure.

Latest Developments
Pipeline construction by APA will depend on several key requirements being met by Armour and APA, including the certification of sufficient gas resources by Armour, the completion of conditional gas sales contracts and securing production licences and project development funding.

Armour aims to have between 7.5-trillion cubic feet (tcf) and 9 tcf of 3C contingent gas resources by November 2015 for its North Queensland project area, covering the South Nicholson and Isa super basins and parts of the overlying Carpentaria basin, in Queensland.

Armour also aims to have more than 4 tcf of 3C contingent gas resources in the Batten Trough of the Macarthur basin and part of the Georgina basin, in the Northern Territory.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armour Energy, tel +61 7 3303 0620 or fax +61 7 3303 0681.
APA Group, tel +61 2 9693 0000, fax +61 2 9693 0093 or email apawebsitefeedback@apa.com.au.