- Central Petroleum (CTP) is hoping to become a major domestic energy supplier in Australia
- The company extended its 12-month GSA with South 32 (S32), supplying an extra 0.36 PJ of gas to Mt Isa by 2025
- The extension adds to Mereenie gas supply from the Mereenie JV, resulting in a total delivery of up to 1.46 PJ of gas to South32 by 2025
- CTP shares are down 1.85 per cent, trading at 5.3 cents at 11:57 am AEST
Central Petroleum (CTP) has made progress in its efforts to become a major domestic energy supplier within Australia, with plans announced to extend its two-year gas supply agreement with South32 (S32) for a further 12 months.
This GSA is specifically designed for a secure gas supply of an extra 0.36 petajoules (PJ) of gas to Mt Isa and includes take or pay clauses, along with a pricing structure that adjusts in accordance with the consumer price index.
Gas delivered under the GSA will be combined with the current Mereenie gas supply from Macquarie Mereenie (MM), NZOG Mereenie (NZOG), and Cue Mereenie (Cue), resulting in a total delivery of up to 1.46 PJ of gas to South32 by 2025.
“We are delighted to extend our relationship with South32 and continue our supply of gas to eastern Australian markets at this time of market uncertainty and supply shortages.” CTP Managing Director and CEO Leon Devaney said.
The GSA will need to correlate with the wider market, meaning the Mereenie JV will be obligated to establish necessary gas transportation agreements, which will serve as a prerequisite to the GSA.
Central is hopeful that this project will continue to expand its gas offerings within the market, following an increase in production capacity after the recent commissioning of the Palm Valley 12 well in November 2022 and recent well recompletions at Mereenie.
CTP shares were down 1.85 per cent, trading at 5.3 cents at 11:57 am AEST.