Cooper Energy (ASX: COE) announces it has signed a new gas supply agreement with Visy for the supply of 7.6 petajoules of gas from Sole for three years from January 2020, which may be extended for a further three years.
Visy is a leading, privately owned packaging and resource recovery company, with more than 120 sites across Australia, New Zealand and Thailand and trading offices across Asia, Europe and the USA.
Gas from Sole will be supplied ex the Orbost Gas Plant at a price in line with current market prices, indexed annually.
Cooper Energy Managing Director David Maxwell said the agreement with industrial gas user Visy demonstrates Cooper Energy’s support for all domestic demand segments.
“Visy joins O-I Australia as the second large industrial manufacturer supplied by Cooper Energy. We are delighted to add another industrial user of gas to our customer portfolio under a multi-year supply agreement.”
Visy Executive General Manager, Global Procurement David Abela said “Visy appreciates the support and engagement from Cooper Energy to help secure supply during tough east coast gas conditions. We are delighted to explore opportunities that the new partnership presents”
The Sole gas field is poised to become south-east Australia’s newest source of gas supply when it commences production on completion of the Orbost Gas Plant upgrade currently being undertaken by APA Group.
Cooper Energy has completed the construction of the offshore development of the Sole gas field and APA is expected to conclude the plant upgrade works and commence commissioning and delivery of sales gas within the September 2019 quarter. The Sole Gas Project will deliver an additional 68 terajoules per day of natural gas supply for south-east Australia.
Mr Maxwell said the Visy agreement follows the recent agreements concluded with AGL which contract 2019 Sole production and longer-term gas sales for the period 2020 to 2023. Discussions with customers on the contracting of the remaining 2019 Sole production are also underway.
Source: Company Press Release