Central Petroleum pens gas supply deal with Shell in Australia
Sydney-listed Central Petroleum has executed an agreement with Shell Energy Australia, a unit of Shell, for 0.91 petajoules of gas supply over one year, starting January 2025, it said on September 15.
The agreement is for a firm gas supply, with take-or-pay provisions and a fixed price. The deal commercialises a portion of existing uncontracted production, the company said.
Central's gas will be aggregated with gas from the Mereenie joint venture to supply a total of 3.65 petajoules to Shell Energy over the one year term. The Mereenie joint venture comprises Macquarie, New Zealand Oil & Gas, Cue Energy and Central.
"This new gas supply agreement allows Central to broaden its customer base across the NT and eastern Australia,” Leon Devaney, Central's CEO commented.
Central said it hopes to bring further gas to market from 2023 once it has completed its current Palm Valley 12 well and further development activity at Mereenie.