Origin signs agreement with Esso Australia and BHP Billiton
Posted: 23 April 2008
Origin Energy today announced it has entered into a Gas Supply Agreement with the Esso Australia Resources Pty Ltd and BHP Billiton Gippsland Basin joint venture to purchase up to 250 petajoules (PJ) of natural gas over 10 years.
The Esso Australia-BHP Billiton contract is expected to commence late 2009, providing a smooth transition from the current Gascor contract.
Origin Chief Operating Officer Karen Moses said the contract would significantly contribute to meeting Origin’s retail gas demand in south-eastern Australia.
"The contract strengthens Origin’s long term gas position. We continue to maintain a highly flexible gas supply portfolio by developing our own equity gas reserves and contracting from a range of other gas suppliers.
"Together with our current equity gas reserves, the contract will help service customers across south-eastern Australia and potential new generation projects such as Origin’s proposed Mortlake Power Station.
"The contract supports our business strategy and position as Australia’s leading fuel integrated generator and retailer," she said.
Origin has developed its own sources of gas supply in Victoria through the BassGas development south-east of Melbourne, which currently contributes 20 PJ annually to Origin’s gas supply arrangements and the Otway Gas Project in south-western Victoria which, when fully operational, will contribute an additional 30 PJ per annum.
In addition, Origin has recently announced the acquisition of the Halladale and Black Watch exploration permit in the Otway basin which may supplement this gas supply and add further flexibility to Origin’s gas supply portfolio.
Posted by Richard Price, Editor, EnergyME.com
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