Central Petroleum Supports Gas Pipeline from Northern Territory to Eastern Markets

Welcoming the recent announcement by Council of Australian Governments (COAG) supporting construction of a gas pipeline from Northern Territory to Eastern gas markets, Central Petroleum said it has begun gas sales talks with potential buyers.

Central has entered into exploratory discussions with potential purchasers to supply 10-15PJ per year from late 2017 to early 2018 into the Eastern market, the company said. The company expects a final commitment to be in place by December.

The Queensland based company is an established conventional gas producer in the Amadeus Basin (centred around Alice Springs)  and the largest holder of gas prone exploration acreage in the basin. It recently announced plans to prove up 200PJ of conventional gas, a condition precedent of which was the establishment of sufficient markets.

“When it became increasingly apparent that a general softening of commodity prices was imminent, late last year Central endeavored to position itself to take advantage of the firming of the domestic gas prices. The journey began with the acquisition of Magellan’s conventional gas assets and will be completed by the time the Northern Territory gas pipeline is awarded to the successful tenderer. It is always rewarding when the national interest and shareholder interests intersect” said Richard Cottee, Managing Director.

Recently, Sydney Morning Herald reported Industry Minister Ian Macfarlane as saying that he was determined to create a national gas market that could theoretically send gas all the way from the Browse Basin in Western Australia to Sydney.

In an exclusive interview with Fairfax Media, Macfarlane said the missing link in creating a single national gas market could be the 1000-kilometre pipeline between Alice Springs and Moomba, South Australia, which would link up the Northern Territory to the east coast gas market, Sydney Mornign Herald reported.