Origin expands east coast portfolio with agreement to purchase gas from Beach Energy
Origin Energy Limited (Origin) today announced it had secured a conditional agreement with Beach Energy Limited (Beach) to purchase up to 139 petajoules (PJ) of its natural gas production from Moomba in South Australia.
Under the terms of the agreement, Origin will purchase up to 17 PJ of natural gas per annum from Beach for an eight-year period commencing in the 2015 financial year. The price incorporates a combination of an oil linked curve and other parameters.
Origin retains the right to extend the agreement for an additional two years, which would increase the gas purchase to up to 173 PJ over 10 years.
The gas represents Beach's equity share of production from the South Australian Cooper Basin and South West Queensland joint ventures. Origin also has interests in these joint ventures and has an equity share of production.
Origin Energy Markets Chief Executive Officer, Mr Frank Calabria said, "The gas purchase agreement announced today enables Origin to bolster its east coast gas portfolio given the expected tripling in demand for natural gas.
"Origin's integrated position, coupled with its existing gas transport capabilities, made this an attractive opportunity to add to the Company's gas portfolio and to secure gas to support our domestic energy markets business.
"At the same time, Origin will continue to review the timing of development of medium-term gas production growth opportunities, including the Ironbark CSG project in Queensland and the Halladale Black Watch gas project in Victoria," Mr Calabria said.
The agreement is between Origin subsidiary, Origin Energy Retail, and Beach subsidiary, Delhi Petroleum.
For further information please contact:
| Media Lina Melero General Manager, External Affairs Ph: +61 2 8345 5217 Mobile: +61 427 017 798 | Investors Kylie Springall Group Manager, Investor Relations Ph: +61 2 8345 5288 Mobile: +61 400 477 393 |
About Origin Energy Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 5,800 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with approximately 5,900 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au.
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