Warrego signs gas offtake agreement with Alcoa
ASX-listed Warrego Energy has signed a gas sales agreement with one of Western Australia’s leading gas buyers, Alcoa, for the long term supply of 155 PJ of natural gas from the West Erregulla gas field.
The agreement will become effective from January 1, 2024.
The agreement is still subject to a final investment decision by Warrego to develop the gas field, which is expected by the middle of next year.
Warrego says the size and term of the agreement with Alcoa is so significant that it does not need to secure additional gas sales agreements to support the final investment decision and bring the field into production.
The company is nonetheless intending on expanding its gas sale portfolio and continues to negotiate with other potential customers.
Meanwhile, Warrego continues to progress gas processing options, including the use of third party facilities and shared infrastructure.
The company also continues with drilling activity in the northern area of the West Errugula field to increase the project’s certified resources.
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