Mereenie JV, Shell sign gas supply deal

The Central Petroleum Ltd.-led Mereenie joint venture in Amadeus basin of the Northern Territory signed a gas supply deal with Shell Energy Australia Pty Ltd. for supply of 3.65 petajoules of gas over a 1-year term.

The gas is destined for Australia’s east coast market with supply beginning Jan. 1, 2025.

The agreement is for firm gas supply, with take-or-pay provisions and a fixed (unspecified) price. The agreement commercializes a portion of existing uncontracted production from Mereenie field.

A condition precedent is that the parties will enter into required transportation agreements to enable gas delivery.

The Mereenie JV comprises Macquarie Group (50% interest), Central Petroleum (operator, 25%) New Zealand Oil and Gas Ltd. (17.5%), and Cue Energy Resources Ltd. (7.5%).