Highlights

• Central Petroleum Limited (“Central”) has signed a gas supply agreement (“GSA”) with Incitec Pivot Fertilisers Limited (“Incitec”) for 0.87 Petajoules (“PJ”) of gas (net to Central) to be supplied to Incitec in 2024.

• Central’s gas will be aggregated with existing Palm Valley gas supply owned by NZOG Palm Valley Pty Limited (“NZOG”) and Cue Palm Valley Pty Ltd (“Cue”) (collectively the “Palm Valley JV”), to supply a total of 1.74 PJ to Incitec in 2024.

• The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

New Gas Supply Agreement

Central today announces that it has signed a GSA with Incitec for the supply of 0.87 PJ of gas in 2024. The GSA is for firm gas supply ex-field (Palm Valley or Mereenie), with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with existing Palm Valley gas supply from NZOG and Cue to deliver up to 1.74 PJ of gas to Incitec in 2024.

Consistent with our broader marketing activities, the ex-field pricing under the GSA reflects current market conditions.

Central expects to bring further gas to market, having increased its production capacity through the commissioning of the Palm Valley 12 well in November 2022 and recent well recompletions at Mereenie.

Leon Devaney, Central’s Managing Director and Chief Executive Officer commented, “We are delighted to extend our relationship with Incitec and continue our supply of gas to eastern Australian markets at this time of market uncertainty and supply shortages.” 

Click here to view the full ASX announcement and media release 

Source: Central Petroleum