Origin Energy has signed a Binding Heads of Agreement with GLNG partners, this iwllallow Origin to moentise its coal seam gas resources. The agreement provides for Origin supplying 365 petajoules (PJ) to GLNG for ten years, commencing in 2015.
The Heads of Agreement also allows Origin the option to hold back 1.825PJ of gas during periods of peak demand for gas and electricity on the East coast of Australia.
Origin Managing Director, Grant King said, “The gas sales agreement with GLNG will deliver significant value to Origin, opening an export channel to market for our legacy fuel reserves and allowing a more rapid monetisation of the resource in line with international oil-linked pricing.
"The transaction demonstrates the strength and value inherent in Origin's diverse and flexible portfolio of physical and contracted fuel resources, which has positioned the company to capitalise on the growing demand for gas in the energy markets of Asia," Mr King said.
GLNG is a joint venture between Santos, Petronas, Total and KOGAS, developing a project which will process coal seam gas (CSG) into liquefied natural gas (LNG). The project will produce 7.8 million tpy of LNG for export to Asia.
Adapted from a press release by Peter Farrell.
Read the article online at: https://www.worldcoal.com/power/02052012/origin-energy-to-supply-gladstone-lng-with-gas/