PERTH (Miningweekly.com) – Diversified miner South32 has signed a gas supply agreement with ASX-listed companies Central Petroleum and New Zealand Oil 7 Gas for the supply of gas to its Cannington operations, in Queensland.
Under the agreements, New Zealand Oil & Gas will supply 0.38 PJ of gas over two years, starting in January 2023, while Central Petroleum will supply 0.55 PJ of gas over the same period.
The gas from both the gas sales agreements will be aggregated with existing gas from the Mereenie joint venture, of which both Central Petroleum and New Zealand Oil & Gas are part, to deliver a total of 2.19 PJ of gas to South32 over the two-year term.
“This new gas supply agreement allows Central to further broaden its customer base in eastern Australia and we are particularly excited about supplying gas into Mt Isa given its proximity to our operations,” said Central Petroleum MD and CEO Leon Devaney.
“We are working hard with our joint venture partners to bring more gas to market and playing our part in helping meet the transitional energy challenge and we look forward to commencing supply to South32.”
Central expected to bring further gas to market from 2023 now that it has completed its current Palm Valley 12 well and following planned development activity at Mereenie.