Echelon Resources has announced that the Mereenie and Palm Valley Joint Ventures have reached non-binding, conditional terms with the Northern Territory’s Power and Water Corporation for the sale of gas from the two central Australian fields through to the end of 2034.
Under the proposed terms, which remain subject to final agreements and approvals, the joint ventures would supply up to 19.1 petajoules of gas net to Echelon from current production. The arrangement also paves the way for the drilling of four new development wells, two each at Mereenie and Palm Valley, which could deliver an additional 13.3 petajoules of net gas. If completed, the deal is expected to materially boost conventional gas output from the Amadeus Basin, helping to ease existing supply constraints that pose a risk to the Northern Territory’s power system reliability.
Echelon’s Chief Executive Officer, Andrew Jefferies, described the development as an exciting opportunity for near-term growth. He said the planned wells would contribute more locally produced and dependable energy at a time when demand is high. Gas from the Mereenie and Palm Valley fields has been a cornerstone of the Northern Territory’s power generation for nearly four decades, and this agreement would enable the joint ventures to expand that contribution rapidly. Jefferies added that the proposed arrangement represented a positive outcome for the joint venture partners, their shareholders, employees, local stakeholders, the Territory Government and residents.