Central extends gas supply deal with Aussie miner
Sydney-listed Central Petroleum on September 21 announced that it has extended its existing two-year gas sales agreement with Australian miner South32 for a further 12 months to include the supply of an additional 0.36 petajoules of gas in 2025.
The agreement is for a firm gas supply to Mount Isa, Queensland, with take-or-pay provisions and a price that escalates with the consumer price index. The gas supplied will be aggregated with existing Mereenie gas supply from Macquarie Mereenie, NZOG, and Cue in order to deliver up to 1.46 petajoules of gas to South32 in 2025.
"Consistent with our broader marketing activities, the renegotiated ex-field pricing under the gas sales agreement reflects strong market conditions," Central said. "The Mereenie JV will need to enter into required gas transportation agreements, which is a condition precedent to the gas sales agreement."
Central said it expects to bring more gas to market, having increased its production capacity through the commissioning of the Palm Valley 12 well in November 2022 and recent well recompletions at Mereenie.