Metgasco secures new two-year gas sale agreement with Pelican Point Power

• Metgasco (ASX:MEL) secures a new two-year gas sale agreement with Pelican Point Power in South Australia
• The joint venture partners to supply gas to Pelican Point Power from January 2025 to December 2026
• The extension was made possible by an authorisation from the Australian Competition and Consumer Commission (ACCC)
• Metgasco last traded at 1.2 cents

Metgasco (ASX:MEL) has extended its gas sale agreement with Pelican Point Power, adding two more years to the existing agreement, now covering the period from January 1, 2025, to December 31, 2026.

This move ensures a steady supply of gas for the foreseeable future, benefiting both companies and contributing to energy security in the South Australian region.

This extension follows a prior agreement announced in May 2023, which covered gas supply up to December 2024. Notably, this extension was made possible by authorization from the Australian Competition and Consumer Commission (ACCC), permitting longer-term gas marketing.

Metgasco and its joint venture partners are exempt from the gas price cap, supplying less than 100 petajoules (PJ) exclusively to the domestic market. This exemption enables them to negotiate prices consistent with the 2025-2026 gas market expectations.

The agreement allows for the supply of all gas produced from the Odin gas field during the contract period.

The 497 Mega Watt (MW) Pelican Point Power Station is located in South Australia and is operated by ENGIE Australia & New Zealand.

This extended partnership ensures a stable gas supply for the Pelican Point Power Station while providing Metgasco with a reliable outlet for its gas production, ultimately benefiting Australian consumers and investors alike.

Metgasco last traded at 1.2 cents.