Australian AWE, Origin Sign Gas Sales Term Sheet with AGL

Australian AWE and Origin have signed a non-binding term sheet with AGL for the first gas sale from second stage of the Waitsia gas project in Western Australian. The term sheet sets out commercial terms for the sale of 15 TJ/d of gas, or 5.5 PJ/yr, to AGL which equates to 15% of stage 2 nominal daily production capacity of the project, AWE said February 27.  

The term sheet will form the basis of a gas sales agreement, which AWE expects to be concluded by mid-2017 calendar year. Term and price have not been disclosed by AWE.   

AWE and Origin each hold a 50% interest in the Waitsia gas field and are jointly marketing stage 2 gas. Stage 2 will have capacity to supply 100 TJ/d, or 10% of Western Australia’s domestic gas needs, for 10 years. AWE is targeting first gas from Stage 2 in calendar year 2020.  

Waitsia Stage 2 is in pre-front end engineering and design (Feed) and is on track to enter Feed in the June quarter, AWE said. AWE is targeting a final investment decision by the end of calendar year 2017, subject to completion of FEED and further gas sales agreements.  

Shardul Sharma