Orica Signs Gas Supply Deal with Esso, BHP

Orica announced Monday that it has entered a three-year Gas Sales Agreement (GSA) with Esso and BHP Billiton (ESSO/BHPB) to purchase up to 42 petajoules (PJ) of natural gas (14 PJ per annum over three years) from Longford in Victoria beginning in 2017.

The ESSO/BHPB joint venture will supply gas for the first time to Orica. These arrangements will meet Orica’s total gas requirement for its Kooragang Island (KI) manufacturing facility in New South Wales.

The natural gas supply will come from the Gippsland basin via the Longford processing plant and be delivered downstream to New South Wales.

The agreement could be extended past the end of 2019, Orica said.

Orica further said that discussions are also currently underway with a number of parties regarding the supply of 3.5PJ per annum to Orica’s Yarwun facility in Queensland.

In July this year, Orica Australia, a subsidiary of Orica Limited and Strike Energy have inked a deal where Strike will supply up to 150 PJ of gas produced from Strike’s PEL 96 located in Cooper Basin, Australia.

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