Central Extends East Coast Gas Supply Agreement
Brisbane, Sep 21, 2023 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (C9J:FRA) (CNPTF:OTCMKTS) today announces that its existing two year GSA with South32 has been extended for a further 12 months to include supply of an additional 0.36 PJ of gas in 2025. The GSA is for firm gas supply to Mt Isa, with take-or-pay provisions and a price that escalates with the consumer price index.
Gas supplied under the GSA will be aggregated with existing Mereenie gas supply from MM, NZOG and Cue in order to deliver up to 1.46 PJ of gas to South32 in 2025.
Consistent with our broader marketing activities, the renegotiated ex-field pricing under the GSA reflects strong market conditions. The Mereenie JV will need to enter into required gas transportation agreements, which is a condition precedent to the GSA.
Central expects to bring further 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.
Leon Devaney, Central's Managing Director and Chief Executive Officer commented, "We are delighted to extend our relationship with South32 and continue our supply of gas to eastern Australian markets at this time of market uncertainty and supply shortages."
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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