Central Petroleum has signed a gas supply agreement (GSA) with Incitec Pivot Fertilisers for 0.87 petajoules (PJ) of gas be supplied to Incitec in 2024.
“We are delighted to extend our relationship with Incitec and continue our supply of gas to eastern Australian markets at this time of market uncertainty and supply shortages,” Central managing director and chief executive officer Leon Devaney said.
Central’s gas will be aggregated with existing Palm Valley gas supply owned by NZOG Palm Valley and Cue Palm Valley, which collectively form the Palm Valley joint venture, to supply a total of 1.74 PJ to Incitec in 2024.
Cue Energy Resources has announced that it has executed the GSA with Incitec Pivot Fertilisers.
The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.
Gas supplied under the GSA will be aggregated with existing Palm Valley gas supply from NZOG and Cue to deliver up to 1.74 PJ of gas to Incitec in 2024.
Central expects to bring further gas to market, having increased its production capacity through the commissioning of the Palm Valley 12 well in November 2022 and recent well recompletions at Mereenie.