Empire Energy has announced a significant 10-year binding gas sales agreement (GSA) with the Northern Territory Government.
The deal will see Empire supply up to 25 terajoules (TJ) of gas per day from its Beetaloo Basin properties, starting in 2025.
The agreement, which amounts to approximately 75petajoules in total, includes an option for the NT Government to purchase an additional 10TJ or more per day for up to 10 years. This option would be triggered if production from Empire’s Carpentaria project exceeds 100TJ per day.
Under the terms of the GSA, gas will be delivered to the McArthur River Gas pipeline on an ex-field take-or-pay basis. The pricing is described as market-competitive, with escalation tied to 100 per cent of the Consumer Price Index.
The deal is subject to several conditions, including Empire reaching a final investment decision for the Carpentaria Pilot Project and obtaining necessary NT regulatory approvals. These processes are reportedly well underway.
Empire Energy, which holds a 100 per cent interest in EP187 where the Carpentaria Pilot Project will be located, is targeting mid-2025 for the commencement of gas deal.
Alex Underwood, Managing Director of Empire, emphasised the significance of the agreement for both Empire Energy and the Northern Territory.
“This agreement comes at a critical time for the energy security of the NT. It demonstrates our commitment to providing energy for Territorians and will facilitate hundreds of millions of dollars of investment into the NT economy. The project will provide local jobs, support NT businesses, and create direct revenue streams for traditional owners and the NT Government,” Underwood said.
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