ENERGEX Retail and Moura Sales, the sales agent for the joint venture between Anglo Coal (Moura) and Mitsui Moura, signed the long-term agreement on Tuesday last week.

Gas supplied under agreement will be sourced from Anglo’s mining and coal

seam gas operations centred on the Moura mine in central Queensland.

Anglo Coal CEO Eric Ford said the agreement presented a significant opportunity to generate additional revenue and reduce greenhouse emissions from the coal mining operations at Moura.

The volumes to be supplied under contract would establish Moura as one of the largest coal seam gas operations in regional Queensland, in close proximity to industrial markets.

Ford said Anglo’s Moura operations, which produce export coking and thermal coal for steel and power generation markets, would benefit from the diversification gained through the signing of the deal with ENERGEX, primarily in Asia.

“Expanding the extraction of methane gas from our extensive coal reserves provides Moura with significant commercial benefits, as well as reducing fugitive emission of methane during future mining of the coal reserve. The commercial and environmental benefits are significant,” Ford said.

The development is consistent with the Queensland Government’s Cleaner Energy Strategy initiatives including managing greenhouse gas emissions through waste gas development projects.

“ENERGEX is seeking to be the leading player in coal seam gas marketing in Queensland through strategic purchases like the present gas sales agreement with Anglo,” ENERGEX CEO Greg Maddock said.

He said long term nature of the arrangement to source gas from Moura would strengthen ENERGEX’s strategic position as a dual fuel supplier and generate increased competition in the Queensland natural gas market.

“The pricing and supply certainty conditions offered by Moura under the agreement are aligned with market expectations about supply reliability, enabling ENERGEX to satisfy demand generated by major industrial customers in Gladstone and other regional Queensland markets,” Maddock said.

Queensland Energy Minister Paul Lucas said the Queensland's total coal seam methane reserves were estimated at 150,000 PJ (ABARE).

“Coal seam methane has the potential to not only supply the Queensland market but to also enable us to become a significant exporter of gas to other States,” Lucas said.