Northern Territory pens gas deals with Central Petroleum, partners
Sydney-listed Central Petroleum and its Mereenie and Palm Valley joint venture partners have entered into new gas sale agreements to supply gas to the government of the Australian state of Northern Territory, the state government announced on July 29.
The gas will be supplied for six years, from January 2025 to December 2030, by joint venture partners Central Petroleum, New Zealand Oil & Gas (NZO), Horizon Australia Energy, and Cue Energy. These partners will provide up to 29 terajoules/day of gas from the Mereenie and Palm Valley fields located in the Northern Territory.
The Mereenie and Palm Valley fields, the largest onshore gas production fields in the Territory, have been secure energy sources for over 40 years.
NZO has a 42.5% participating interest in the Mereenie joint venture, Cue has a 7.5% interest (NZO owns 50.04% of Cue), Horizon Oil has a 25% interest, and Central Petroleum (Operator) holds a 25% participating interest. The NZO Group includes NZO and Cue. NZO has a 35% participating interest in the Palm Valley JV, Cue has a 15% interest, and Central Petroleum (Operator) holds a 25% participating interest.
Last week, the Territory government signed a 10-year binding gas sales agreement with Beetaloo-focused gas producer Empire Energy. This agreement involves the supply of 25 terajoules/day from the Carpentaria pilot project, starting next year. The binding gas sales agreement is conditional on customary conditions, including Empire reaching a final investment decision for the Carpentaria pilot project. Empire holds a 100% interest in EP187, where the Carpentaria pilot project is located.
The Australian east coast market may experience gas supply shortfalls as early as 2027, a year earlier than previously expected, unless new sources of supply are made available, according to a report published on July 5 by the country’s competition watchdog. The Australian Competition and Consumer Commission attributed this forecast to an increase in forecasted gas consumption for power generation and a decrease in forecasted supply due to delays in new gas projects and production problems in legacy gas fields.