Origin Energy Limited (Origin) today announced the signing of a long-term gas sales agreement with the MMG group (MMG), providing a pathway for the company to monetise its gas resources at attractive prices.
Under the terms of the agreement, Origin will supply MMG, a mid-tier global resources company, with gas for its existing Century Mine and the development of the Dugald River project. Origin will supply MMG with a total volume of up to 22 petajoules (PJ) of gas over a seven year period, commencing with supply to Century mine 2013. The gas will be sourced from Origin’s east coast fuel portfolio.
Origin Chief Executive Officer Energy Markets, Mr Frank Calabria said, "The signing of a large domestic gas sales agreement with MMG is testament to the strength and flexibility of Origin's portfolio of gas resources, and demonstrates the company's ability to benefit from the anticipated tripling in gas demand in eastern Australia.
"The MMG gas sale, together with the recent gas sale to GLNG partners, stands to deliver value to Origin shareholders, as it allows the Company to rapidly monetise its resources in line with rising gas prices.
"The agreement also demonstrates that the development of the east coast CSG to LNG industry can co-exist alongside reliable gas supply to domestic users," Mr Calabria said.
Origin has a substantial reserves position and access to a portfolio of gas development opportunities, which could be developed to meet the growing demand for gas.
MMG Limited is a mid-tier global resources company which explores, develops and mines base metal projects around the world. It is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange.
Source: Origin Energy Limited
To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today