Supply of gas over a 12 month term is expected to commence on 1 January 2017, with the GSA replacing Beach’s existing ex PEL 106 raw gas sales contract. Any production beyond contract volumes will be available for sale via the spot market or new contracts.
LPG and condensate production from Beach’s Western Flank acreage will continue to be sold to the South Australian Cooper Basin Joint Venture (“SACB JV”). Following commencement of the GSA and raw gas processing by the SACB JV, Beach expects a material uplift in net revenue from its Western Flank gas acreage.
Beach’s CEO, Matt Kay, said “We are pleased to announce our agreement with Adelaide Brighton, a fellow South Australian company and Beach’s first industrial gas customer. This agreement will see South Australian gas delivered to local operations.”
“Following what was a competitive bidding process involving multiple parties, we remain firmly of the view that gas supply pressure is increasing within east coast and southern markets.”
