Origin Energy Limited announced the signing of a second agreement to sell gas to GLNG partners, providing a pathway for Origin to monetise its gas portfolio in line with international oil-linked pricing.
As part of the agreement, Origin will supply GLNG with at least 100 petajoules (PT) of gas at Wallumbilla over a period of five years, starting on 1st January 2016. There is also an option to supply additional volumes of up to 94 PJ of gas to GLNG, and preserves flexibility to recall certain volumes of gas into Origin’s portfolio, for example during periods of high gas or electricity market demand on Australia’s east coast.
Origin CEO of Energy Markets, Frank Calabria, commented: "The signing of Origin's second major agreement to sell gas to GLNG demonstrates the strength and value of the company's east coast gas portfolio, including extensive transport capabilities.
"The agreement stands to deliver significant value, by allowing Origin to monetise its gas resources in line with international oil-linked pricing.
"In addition, Origin continues to invest in a range of organic opportunities to grow its gas production portfolio, including the Halladale Black Watch conventional gas project in Victoria and the Ironbark CSG project in Queensland."
Adapted from press release by Katie Woodward