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Origin Energy secures 432 PJ of natural gas from ESSO/BHPB

by Staff Writer
October 3, 2013
in Contracts awarded, Features, Gas, News
Reading Time: 1 min read
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Origin Energy has signed a binding Gas Supply Agreement with ESSO and BHP Billiton to purchase up to 432 petajoules of natural gas from Longford in Victoria.

Under the terms of the agreement, gas supply to Origin will commence in 2014. Annual contract volumes will increase over the nine year period, with delivery points at both Sydney and Longford.

Price indexation initially reflects current pricing arrangements in the market and transitions to incorporate an oil linked mechanism.

Origin Energy Markets Chief Executive Officer, Mr Frank Calabria said, “The demand outlook for natural gas on Australia’s east coast remains robust and this substantial volume of gas secured from two of the country’s premier suppliers allows Origin to sell long term contracts to meet customers’ needs.

“This large volume of gas, along with a recent purchase agreement with Beach Energy, has strengthened Origin’s gas portfolio, and when combined with the Company’s extensive transport capabilities, presented an attractive option to create further value in the gas market.

“Origin also continues to pursue organic growth of its gas production portfolio over the medium-term, including the Ironbark CSG project in Queensland and the Halladale Black Watch conventional gas project in Victoria,” Mr Calabria said.

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