Oz Origin, GB Energy Ink Gas Deal
Australia’s Origin Energy has signed an agreement to buy the entire gas produced from GB Energy’s Golden Beach field, offshore Gippsland Basin, Victoria, it said February 26.
Origin said it has also entered into a foundation storage contract if GB Energy transitions the reservoir into an underground storage facility after production.
GB Energy has estimated that the field will produce up to 50 petajoules (1.33bn m3) over three years and is expected to start production in 2021 or 2022, with the gas to be supplied at a fixed price to Origin.
“The gas industry is working to meet customer demand by developing new gas resources that build supply capacity into the future,” Origin executive general manager energy supply and operations Greg Jarvis said.
“Origin is focused on strategic opportunities to grow its gas portfolio and on securing enhanced flexibility to direct more gas when needed for use as energy or as feedstock for manufacturing.”
GB Energy CEO Tim Baldwin said: “These agreements are a critical step in progressing the development of the project that is expected to become a key piece of infrastructure for the east coast gas market.”