PERTH (miningweekly.com) – Energy major Shell has inked two new gas supply agreements with the Mareenie joint venture (JV) participants to supply gas to the Australian east coast.
ASX-listed Cue Energy on Thursday reported that it had inked a supply agreement with Shell to supply 0.27 PJ of gas over one year, starting in January 2025.
Shell has also struck an agreement with Central Petroleum, which will provide 0.91 PJ of gas to Shell, which will also be aggregated to existing Mereenie gas supply.
Central Petroleum’s offtake with Shell will also span over a one-year term, starting in January 2025.
Furthermore, New Zealand Oil and Gas will supply 0.64 PJ of gas to Shell, starting in January 2025.
Gas under the supply agreements would be aggregated with gas from the Mereenie JV to deliver up to a total of 3.65 PJ to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.
Gas will be supplied into the East Coast domestic market, with pricing under the gas sales agreement reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the agreement, to enable delivery of this gas.
The Mereenie JV is 50% held by Macquarie Mereenie, with Central Petroleum holding a 25% interest, New Zealand Oil & Gas holding a 17.5% interest and Cue holding a 7.5% interest.