QPM’s Moranbah Gas Reserves Surge Past 1,000 PJ, Powering Queensland’s Energy Future

A Transformational Upgrade

QPM Energy Limited (ASX:QPM) has revealed a significant milestone in its Moranbah Gas Project (MGP) with an independent reserves and resources upgrade certified by Netherland, Sewell & Associates, Inc. (NSAI). The total certified gas volumes now stand at an impressive 1,016.5 petajoules (PJ), comprising 602.5 PJ of 2P (proved plus probable) reserves and 414.2 PJ of 2C (contingent) resources. This represents a transformational leap for QPM, reinforcing its position as a major gas supplier in Queensland’s energy landscape.

The upgrade reflects improved field operating practices, successful recommissioning of wells, and a detailed re-analysis of historical production data. These operational enhancements have not only increased recoverable volumes but also lowered operating costs, creating a more robust economic foundation for future development.

Strategic Implications for Queensland’s Energy Market

With over 800 PJ of uncontracted gas reserves and resources, QPM is well-positioned to support the Queensland Government’s Energy Roadmap, which targets the development of 3.6 gigawatts of new gas-fired electricity generation capacity by 2035. The Moranbah Gas Project’s reserves provide a critical supply base for the Isaac Energy Hub, a planned low-cost, long-duration electricity generation facility.

Moreover, the upgraded reserves underpin the proposed Bowen Gas Pipeline, designed to connect the Bowen Basin’s gas resources to Gladstone’s domestic and export markets. The pipeline has been identified as a strategic infrastructure project by both the Queensland and Commonwealth governments, aiming to bridge the growing supply-demand gap in gas and facilitate Queensland’s transition to a lower carbon economy.

Operational and Economic Foundations

QPM’s granted Petroleum Leases cover all certified reserves and resources, with environmental and regulatory approvals in place. The company’s existing production, processing, and compression infrastructure provide a unique platform for rapid development, reducing the typical lead times associated with bringing new gas reserves online.

NSAI’s certification process incorporated updated economic parameters, including gas prices based on existing commercial contracts and revised capital and operating cost structures. These adjustments reflect QPM’s improved cost efficiencies and support expanded booking assumptions, enhancing the project’s economic viability.

CEO Perspective and Market Outlook

CEO David Wrench emphasised the significance of the upgrade, stating that the Moranbah Gas Project is now a substantial asset capable of underpinning Queensland’s gas and electricity markets for the long term. He highlighted the combination of secured leases and infrastructure as a unique advantage that can accelerate development and create significant shareholder value.

As Queensland faces increasing gas demand driven by government policy and market dynamics, QPM’s expanded reserves and resources position it as a pivotal supplier. The company’s ability to fast-track development could influence regional gas prices and supply security, particularly as the Bowen Gas Pipeline project gains momentum.