Join our daily newsletter At The Bell to receive exclusive market insights
- Cooper Energy is looking to use its upcoming Sole pipeline to service Visy in a new supply deal
- Starting from January 2020, Cooper will supply 7.6 petajoules of gas a year for three years
- Cooper’s Sole pipeline recently completed infrastructure developments and is slated for kickoff this coming September – expected to be south-east Australia’s newest gas supply
- The deal with Visy is open to a three year extension into 2026 if wished
Cooper Energy has signed yet another gas supply deal, this time a three year contract with company Visy.
Cooper will be supplying the resource recovery company with 7.6 petajoules of gas a year. This deal will officially execute in January next year – running until 2023. This means Cooper will roughly supply a total of 22.8 petajoules of gas.
The deal is also open to further extension for another three years.
Today’s deal also marks Visy as the second largest industrial manufacturer to use a supply of Cooper gas.
“We are delighted to add another industrial user of gas to our customer portfolio under a multi-year supply agreement,” said Cooper Managing Director David Maxwell.
Visy operates over 120 recovery sites across Australia, New Zealand and Thailand. The company has offices in Asia, Europe and America.
Gas from Cooper will be utilised through its upcoming Sole gas field pipeline. Offshore development and construction of the Sole pipeline has been recently completed.
When active, Sole will be south-east Australia’s newest source of gas supply.
The first gas sales and finalisation of upgraded works at Sole are expected in September this year. The gas supplied to Visy will be priced in line with current market prices and indexed annually.
“Visy appreciates the support and engagement from Cooper Energy to help secure supply during tough east coast gas conditions,” added Visy Executive General Manager David Abela.
“We are delighted to explore opportunities that the new partnership presents,”
Shares in COE are priced at 54.3 cents today, a 5.34 per cent premium from yesterday’s closing price in the Aussie market.
Cooper Energy’s market cap is valued at $835 million today.
