Hartshead Resources (ASX:HHR) enters into an agreement with shell for its phase I gas field production

• Hartshead Resources (HHR) sets out commercial terms with Shell UK to process and transport gas from the Hartshead phase I gas field
• Gas will be transported to Shell infrastructure via a planned Hartshead-owned pipeline and subsea connection
• The deal comes in tandem with HHR’s plans to submit front-end engineering and design (FEED) and final field development plan (FDP) work to the UK government
• The two companies will now progress to conclude full-termed binding agreements for the offtake arrangement
• HHR shares close 10.53 per cent higher at 4.2 cents on Wednesday afternoon

Hartshead Resources (HHR) has set out commercial terms with Shell UK to process and transport gas from the Hartshead phase I gas field.

Under the potential deal, gas will be transported to Shell infrastructure via a planned Hartshead-owned pipeline and subsea connection.

Gas will then travel to the Shell Leman Alpha platform before it is delivered to the Bacton gas terminal for processing and delivery to the UK national Gas Transmission System.

The Bacton gas plant lies 32 kilometres from Great Yarmouth and is a hydrocarbon Gas processing plant of strategic national importance to the UK.

The plant is responsible for up to one-third of the country’s gas supply and is a significant importer and exporter of gas across Europe.

HRR and Shell will now work to conclude full-termed binding agreements for the offtake arrangement, which they plan to progress alongside HHR’s front-end engineering and design (FEED) and final field development plan (FDP) work to be submitted to the UK government.

Agreements between HHR and Shel UK will also outline any required brownfield modifications as part of the gas off-take route for the Anning and Somerville gas fields.

HHR shares closed 10.53 per cent higher at 4.2 cents on Wednesday afternoon.