Cooper Energy Ltd., Adelaide, has agreed to acquire the Orbost gas processing plant in east Gippsland from the APA Group for $270-330 million (Aus.).
The plant processes Cooper’s production from Sole gas field in Bass Strait.
APA will remain plant operator for the period between financial close and the date on which the Major Hazard Facilities License is transferred, which is s expected to take up to 12 months.
The deal accelerates Cooper’s position in the Gippsland basin and strengthens the end-to-end capability to produce, process, and deliver gas to domestic customers and the spot market, said David Maxwell, managing director.
Following the acquisition, Cooper will operate three gas fields and two gas plants supplying gas into the southeast Australian market.
The Orbost plant is about 14 km from the Gippsland town of Orbost and is connected to the Eastern Gas Pipeline from Gippsland to Sydney.
The plant’s performance has varied during the last 18 months, but it can deliver at average rates of 55 terajoules/day of gas following upgrades in March and April this year. Further improvements are planned, the company said.
Deal completion, conditional on completion of a minimum capital raise by Cooper, it expected late July 2022.