Cooper Energy and Santos Sign Third Gas Sales Agreement for Sole Gas Project
Friday 21 October 2016
Cooper Energy has signed a binding gas sales agreement with Alinta Energy for the supply of gas from the Sole gas field of up to 2 PJ per annum for a minimum of 5 years with provision for a 3 year extension, subject to the parties' agreement.
The agreement is conditional upon certain conditions precedent, including an affirmative final investment decision (FID) for Sole. Supply under the contract is planned to commence in 2019.
Cooper Energy now has a total of 77 PJ under binding gas sales agreements, which is 64% of its 121 PJ equity share of the Sole 2C Contingent Resources of 241 PJ1. On an annual basis, Cooper Energy has contracted 9.6 PJ of its 12.5 PJ share of the first 8 years’ production anticipated from the field. The Alinta Energy agreement is the third supply agreement announced by Cooper Energy in the past 14 months with the other sales agreements held with O-I Australia and AGL Energy.
'We are very pleased to add Alinta Energy to our portfolio of gas supply customers' said Cooper Energy Managing Director, David Maxwell. 'Our gas marketing strategy has always been directed to establishing a portfolio of blue-chip customers from the energy retail and industrial sector.
'Securing a base load of quality contracts is a foundation for the final investment decision. The support shown for the Sole gas project from major energy retailers and industrial buyers has been substantive and demonstrates a commitment to the development of a broader and more diverse supply base for south east Australia gas users' said Mr Maxwell.
Alinta Energy’s Chief Executive Officer, Jeff Dimery said 'We are delighted to have forged this new relationship with Cooper Energy through this agreement. As a growing east coast energy retailer having access to competitively priced gas into the future allows us to deliver on Alinta’s mission which is to make energy more affordable for our customers.'
Mr Maxwell said that Sole was continuing to attract strong interest. 'A key element of the Sole final investment decision is the optimisation of funding and equity levels for Cooper Energy shareholders and prudent project financing. This latest contract, and the ongoing interest in Sole, is highly encouraging for our shareholders' he said.
Cooper Energy holds a 50% interest in the Sole gas field and the Orbost Gas Plant, from which the gas will be supplied to Alinta Energy, with the balance being held by Santos. The Sole gas field is located in VIC/RL3, offshore Victoria approx. 62 kms from the Orbost Gas Plant, onshore Victoria.