Cooper Energy has entered into a long-term, gas sales agreement (GSA) with AGL to supply up to 10 PJ of natural gas per annum, for a term of up to six years.
The GSA is conditional on an affirmative Final Investment Decision (FID) on the Otway Phase 3 Development (OP3D), which is targeted for the first half of 2023.
The GSA volumes account for some 50 to 70 per cent of the Cooper Energy share of Otway gas production from the commencement of production from the OP3D project.
Some of the key terms of the GSA are:
- 8 PJ per annum initial annual quantity mainly from the Annie gas field for the first three years and a declining tail;
- potential for increased volumes to an aggregate total of 10 PJ per annum over the six-year term, subject to exploration success;
- gas processed at the Cooper Energy-operated Athena Gas Plant;
- first production targeted for 2025; and
- market reflective contract terms and gas pricing.
The price structure ensures a robust OP3D project whilst providing competitive gas to consumers.
Managing Director David Maxwell said the company was pleased to agree on terms for the sale of gas with AGL on a basis which both supports the OP3D project and enables Cooper Energy to provide additional supplies of competitive gas to South-east Australia gas users.
“AGL is a high quality and value-adding partner of our growing business. We are pleased to agree terms to support the commercialisation of OP3D and continue to build our relationship with AGL. This agreement is a key step to unlock further debt capacity under our senior secured debt facility to support funding the project and delivery of additional gas to the domestic market.”
The OP3D project is soon to enter the front-end engineering and design phase.
Participating interests in the Casino Henry operations and the Athena Gas Plant are Cooper Energy (50% and Operator) and Mitsui (50%, through its subsidiaries).
