Oz Cooper Signs Gas Supply Deal
Australia’s Cooper Energy announced July 11 that it as signed a new gas supply agreement to supply packaging and resource recovery company Visy.
Cooper will supply 7.6 petajoules (7.16bn ft3) of gas from the Sole gas project for three years from January 2020. The deal may be extended for a further three years.
Visy has more than 120 sites across Australia, New Zealand and Thailand and trading offices across Asia, Europe and the USA. Gas from Sole will be supplied from the Orbost gas plant at an ex-factory price in line with the market, indexed annually, Cooper said.
Cooper Energy managing director David Maxwell said the agreement demonstrates the company's support for all domestic demand segments. “Visy joins O-I Australia as the second large industrial manufacturer supplied by Cooper Energy. We are delighted to add another industrial user of gas to our customer portfolio under a multi-year supply agreement.”
Sole gas field is poised to become south-east Australia’s newest source of gas supply when it commences production. That will come on completion of the Orbost gas plant upgrade currently being undertaken by Australian gas infrastructure firm APA Group.
Cooper Energy has completed the construction of the offshore development of the Sole gas field and APA is expected to conclude the plant upgrade works and commence commissioning and delivery of sales gas within the September 2019 quarter.
The Sole gas project, offshore Victoria, will deliver an additional 68 terajoules/day (64mn ft3/d) of natural gas supply for south-east Australia. Maxwell said the Visy agreement follows recent agreements concluded with AGL which contract 2019 Sole production and longer-term gas sales for the period 2020 to 2023. Discussions with customers on the contracting of the remaining 2019 Sole production are also underway, he said.