Another domestic gas deal struck on east coast

12th July 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Cooper Energy has signed a new gas supply agreement for 6.7 PJ of gas from its Sole project over a three-year period, starting in January.

The agreement with packaging and resource recovery company Visy, can be extended for a further three years.

Cooper Energy MD David Maxwell this week said that the agreement with Visy demonstrated the company’s support for all domestic demand.

“Visy joins O-I Australia as the second large industrial manufacturer supplied by Cooper Energy. We are delighted to add another industrial user of gas to our customer portfolio under a multi-year supply agreement.”

Cooper Energy has completed the construction of the offshore development for the Sole gas field, and gas infrastructure giant APA is expected to conclude plant upgrade works and start the commissioning and delivery of gas sales within the September quarter.

The Sole project is expected to deliver an additional 68 TJ/d of natural gas supply to south-eastern Australia.

The Australian Petroleum Production and Exploration Association (Appea) has welcomed the domestic gas supply agreement between Cooper Energy and Visy, with CEO Andrew McConville saying it showed further evidence of the strong investment that industry is making to increase gas flow into the east coast market.

“The industry takes its obligations to the domestic market seriously. This deal highlights the importance of developing new gas resources and the response industry is taking to accelerate delivery of more supply,” McConville said.

“This new agreement brings the total to 79 new publicly announced gas agreements signed since 2012 in Australia, showing the strong commitment the sector has for the domestic market. Together, these contracts total more than 4 500 PJ of gas.”