Origin Energy to Supply Gas to QGC

Origin Energy on Thursday announced the signing of a conditional gas sales agreement with QGC Pty Limited (QGC).

According to the company, the deal provides Origin an additional pathway to monetise its gas portfolio.

Under the terms of the agreement, Origin will supply QGC with up to a total of 30 petajoules (PJ) of gas at Wallumbilla in calendar year 2014 and 2015 at oil-linked pricing.

The transaction retains Origin's fuel flexibility with an option to call back certain volumes of gas into its portfolio during periods of high east coast gas or electricity market demand.

Origin Chief Executive Officer Energy Markets, Frank Calabria said, "The agreement highlights the strength and flexibility of Origin's portfolio of fuel resources, which position the company ideally to meet domestic and international demand for gas.”

QGC is a leading natural gas explorer and producer focused on establishing the world's first project to convert gas from coal seams into liquefied natural gas - Queensland Curtis LNG (QCLNG). QGC is wholly owned by BG Group. QCLNG involves the expansion of QGC's gas production in the Surat Basin of southern Queensland. 

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