Origin sells more gas to rival

ORIGIN Energy has signed a second major agreement to sell gas to rival Gladstone LNG partners, including Santos and Total, after an earlier supply deal negotiated the sale of 365 petajoules of gas over a 10-year period.
Origin sells more gas to rival Origin sells more gas to rival Origin sells more gas to rival Origin sells more gas to rival Origin sells more gas to rival

CSG well at Talinga, QLD. Courtesy Origin Energy

Andrew Snelling

The agreement will allow the sale of at least 100 petajoules of gas at Wallumbilla, Queensland, over a period of five years beginning on January 1, 2016.

The Santos-led GLNG project needs the reserves to get it to its scheduled 2015 completion date, with the project at 72%.

Under the agreement, Origin can sell additional volumes of up to 94PJ of gas but will maintain the flexibility to call back certain volumes of gas into its portfolio during periods of high electricity demand on the east coast.

Origin says the agreement is key to monetising its gas portfolio in line with international oil-linked pricing, a handy avenue for the company, which is developing gas projects in Victoria and Queensland.

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