PERTH (miningweekly.com) – Oil and gas major Santos has struck a gas sales agreement with the joint venture (JV) partners of the Walyering JV in the Perth basin.
Santos will purchase a total of 36.5 PJ of gas from the Walyering field over five years, commencing in the first half of 2023. The agreement is facilitated by Santos’ existing customer relationships and pipeline transport positions, with gas to be delivered into Santos’ Western Australian domestic sales gas portfolio.
Santos MD and CEO Kevin Gallagher said Santos continues to support Western Australian industry through the delivery of competitively priced domestic natural gas.
“We are delighted to sign this agreement with the Walyering JV and bring this gas to market in a timely manner, reinforcing our position as Western Australia’s biggest supplier of domestic gas,” Gallagher said.
ASX-listed Talon Energy, which held a 45% interest in the JV along with Strike Energy, on Wednesday said gas supplied under the contract would be sourced from the Walyering gasfield where the JV was constructing a low-cost gas processing facility and associated infrastructure, with gas production being delivered into the Parmelia gas pipeline.
“The signing of the gas sales agreement (GSA) with Santos is a momentous moment for Talon and the JV. With the GSA now finalised the focus of activities at Walyering will be on the imminent construction and commissioning phase of Walyering’s development, followed soon after by strong cash flows underpinned by this agreement,” said Talon CEO and MD Colby Hauser.
“The firm pricing secured in the GSA provides a high degree of certainty with respect to future gas sales income for Talon, and in conjunction with our recent capital raise, provides the company with a strong foundation for its future project development and growth.”