Elixir Energy (ASX:EXR) has formalised an early works agreement with APA Group (ASX:APA) to fast-track the commercialisation of its Taroom Trough assets.
The partnership focuses on conducting comprehensive feasibility work to determine the most economic and efficient route for transporting gas from the notional Lorelle Pilot Project to the Wallumbilla Gas Hub.
The WGH serves as a critical nexus for wholesale gas trading, connecting nine major pipelines and facilitating supply to both domestic markets and international LNG export facilities.
The twelve-week study will rigorously evaluate two primary pathways from the Lorelle-3H location in ATP2056: a 25-kilometre northern connection to the Roma to Brisbane Pipeline and a 50-kilometre direct route to the north-west at Wallumbilla.
By comparing capital expenditure, operational costs, and regulatory requirements, the study aims to finalise a concept selection that prepares the project for entry into the front-end engineering design phase.
Beyond gas distribution, early route definition is vital for monetising associated condensate and light oil resources through Queensland’s refining market.
The technical groundwork, which includes a Class-V capital estimate and Level-1 schedule, provides essential data for future reserves booking following the Lorelle-3H appraisal well-flow testing scheduled for June.