Vintage Energy has signed a memorandum of understanding (MoU) with Australia’s largest gas infrastructure company APA Group, and Comet Ridge Galilee.

Under the terms of the MoU, APA will undertake a work program to identify a pipeline route to connect the Galilee Basin in Queensland to Australia’s east coast gas markets.

APA’s proposed route will also allow for gas to be supplied to the large mining projects planned for the Galilee Basin, providing an alternative to diesel for their operations.

The work program will include ground surveys, engaging with local stakeholders, undertaking initial environmental studies, and applying for a pipeline survey license.

The three companies also agreed on a framework to negotiate a gas transportation agreement (GTA). Under the GTA, the APA would build, own, and operate new pipeline infrastructure to transport gas from the Galilee Basin Deeps joint venture permits held by Vintage and Comet Ridge.

The managing director of Vintage, Neil Gibbins, said: “We believe that the Galilee Basin has the potential to produce material quantities of gas. In order to fully commercialize any discovered gas, we will need to have access to the Australian east coast markets, so this MOU with APA is a large step toward making this possible.

“The timing of this MOU with APA couldn’t be better considering our imminent appraisal drilling campaign of the Albany-2 and Albany-1/ST1 wells.“