Australia's Central Petroleum signs new gas supply deal

Australian gas producer Central Petroleum has agreed to supply up to 3.15 petajoules of gas to the Northern Territory's Power and Water Corporation (PMC) via a back-to-back gas sales agreement with Macquarie Mereenie (MM), it said on November 29.

Central's gas will be aggregated with the existing Mereenie gas supply owned by MM, NZOG Mereenie and Cue Mereenie, to supply a total of 12.6 petajoules to PWC.

The gas is to be supplied over a four-year term starting January 1, 2022, commercialising a portion of the increased production recently brought online following the 2021 Mereenie development campaign, Central said.

The GSA is for firm gas supply, with take-or-pay provisions and a fixed price subject to annual CPI escalation, Central said. “Pricing reflects strong market conditions and is expected to improve Central's average realised ex-field portfolio gas price over the next four years,” it added.