Tipperary negotiating to sell 210 bcf of gas
Tipperary Corp., Denver, Colo., has entered a nonbinding memorandum of understanding to sell up to 210 bcf of gas to Queensland Fertilizer Assets Ltd., Australia, over 20 years. The latter company plans to build a plant in southeastern Queensland.
By the OGJ Online Staff
HOUSTON, Mar. 21�Tipperary Corp., Denver, Colo., has entered a nonbinding memorandum of understanding to sell up to 210 bcf of gas to Queensland Fertilizer Assets Ltd., Australia, over 20 years.
Coalbed methane E&P company Tipperary owns 90% of Tipperary Oil & Gas (Australia) Pty. Ltd., which in turn holds a 62.25% interest in the Comet Ridge coalbed methane project in southeastern Queensland and other exploration permits.
Tipperary said when a final contract is signed, it is obligated to offer other participants in the Comet Ridge project a pro rata portion of sales under the contract.
The memorandum provides that Tipperary may seek assistance from Energex Retail Pty. Ltd. to underwrite the gas supply obligation. Energex is an enterprise wholly owned by the Queensland government. Tipperary has two existing gas contracts with Energex.
The gas would be consumed by a fertilizer plant to be built by QFAL in southeastern Queensland. Construction, to last 2 years, would begin 6 months after QFAL obtains government approvals and project financing.