Amplitude Energy and O.G. Energy are charging ahead with the Otway Basin development, entering a binding joint venture agreement to progress the East Coast Supply Project (ECSP) on a 50/50 basis to deliver additional gas supply to the structurally short east coast market.
The interim joint venture agreement (IJVA) with subsidiaries of O.G. Energy will enable the delivery of Amplitude Energy’s preferred three-well program for the Otway Basin development, aiming to bring up to 90 TJ/d of gas supply through the existing Athena Gas Plant.
First gas supplied from the ECSP is targeted in 2028, utilising existing brownfield infrastructure, helping mitigate expected shortfalls in the market while supporting energy security for Australian customers.
Contemporaneously, subsidiaries of O.G. Energy and Mitsui E&P Australia (MEPAU) have executed a sale and purchase agreement for O.G. Energy’s acquisition of MEPAU’s existing interests in the Otway Basin joint ventures, including the Athena Gas Plant.
The IJVA establishes an unincorporated joint venture between subsidiaries of Amplitude Energy and O.G. Energy to progress the ECSP in the interim period between the signing of the IJVA and completion of the Otway sale transaction.
Jane Norman, Amplitude Energy Managing Director and CEO, said the agreements establish alignment between Amplitude Energy and O.G. Energy and provide a clear path forward to progress the company’s preferred three-well ECSP – one of the largest new domestic conventional gas supply sources in the southeast market.
“Securing a strong, strategically-aligned partner for our project is a crucial milestone in ensuring additional gas supply to the east coast gas market.
“In its latest Gas Statement of Opportunities released last week, AEMO highlighted the risk of peak-day gas shortfalls and seasonal supply gaps in the southern states arising from 2028, with annual supply gaps emerging from 2029,” Norman said.
“On success, our investment in the ECSP could potentially provide enough gas for >600,000 Victorian homes for a decade from reserves and conversion of our resources.
Norman said the project is structured to deliver first gas as early as possible, minimise exploration risks and maximise the use of existing gas infrastructure.
“O.G. Energy is a significant international investor in conventional offshore gas and oil with existing interests in Australia, New Zealand, and the United States, and their investment in our Otway Basin assets provides strong validation for the ECSP, and the market opportunity more generally.
“We are pleased to have aligned our working interests across all our titles in the Otway basin, supporting future developments with an aligned partnership.
“We look forward to working with O.G. Energy to bring additional and much-needed gas supply to Australia’s southeastern domestic market.”
Subscribe to Energy Today for the latest project and industry news.