Blue Energy granted go-ahead for Sapphire gas developments in Queensland

Blue Energy’s (ASX: BLU) long-running legal battle to progress its large Sapphire gas development in Queensland’s Bowen Basin appears to have finally been resolved.

In a case that had been ongoing since July 2023, the Land Court of Queensland (LCQ) has decided to grant an amended environmental authority (EA) to Blue Energy subsidiary Eureka Petroleum to undertake activities in the Sapphire PL 1034 application area.

Environmental Advocacy in Central Queensland initially brought the Land Court appeal against the state government for granting the original EA to Blue Energy.

Earlier decision set aside

As part of its judgment, the LCQ has set aside the earlier decision to award the EA and substituted an updated decision granting a new authority on amended terms.

The amended EA now allows the Queensland Minister for Natural Resources, Mines, Manufacturing and Regional and Rural Development to grant Eureka a petroleum lease over the Sapphire Block.

It also sets a precedent as the first published judgment in an appeal against a Department of Environment, Tourism, Science and Innovation decision to grant an EA for a project under the Petroleum and Gas (Safety and Production) Act 2004.

Ready to develop resources

Blue Energy managing director John Phillips said the matter was now concluded, with the Land Court issuing a valid EA for Blue to continue development of its gas resources and reserves in the Bowen Basin.

Mr Phillips said Blue can now focus on this and its other tenements in the region, which contain significant gas resources.

The company considers the development of these assets as vital to bolstering gas supply and local manufacturing along Australia’s east coast, the stability of the electricity grid and many jobs and households that these sectors support.