Beach Starts Gas Supply to Origin Under Long Term Agreement

Beach Energy on Wednesday commenced gas supply to Origin Energy under a long term agreement signed in 2013.

The gas will be sourced from the South Australian Cooper Basin Joint Venture, the Patchawarra East JV and the South West Queensland Unit Joint Venture.

Key benefits to Beach from the agreement include attractive oil‐linked pricing with other parameters, and expected delivery of significant sales gas volumes over an initial eight year period (total volumes of up to 139 PJ), with a two year extension available to Origin (for total volumes of up to 173 PJ over full ten year period), the company said.

It is expected that sales gas delivery under the long term agreement will ramp up during financial year 2016, while legacy contracts continue to be serviced.

Beach’s Managing Director, Rob Cole, said, “We are pleased to have partnered with Origin for the supply of material gas volumes under a long term gas sales agreement.  Our transition to separate gas lifting and marketing from the Cooper Basin will strengthen both Beach’s position as an independent upstream gas supplier, and our ability to benefit from expected East Coast gas demand growth.”