Global resources giant BHP Billiton announced on Wednesday that it has secured a significant long-term gas-supply agreement with a leading Australian energy company, Origin Energy, to supply gas to south-eastern Australia.
Under the agreement 250 petajoules of natural gas will be supplied over ten years from the Gippsland Basin oil and gas fields, located offshore of Victoria and operated by BHP Billiton’s joint venture partner, Esso Australia.
Gas supplied under the agreement approximates to 5% of the south-eastern gas market in Victoria, New South Wales and South Australia.
The supply of gas will commence in late 2009, representing a continuation of BHP Billiton’s long-term customer relationship with Origin Energy, it said.
“BHP Billiton continues to receive considerable interest in long-term gas-supply as demand for natural gas rises in eastern Australia, particularly in response to the increasing role of natural gas in the power-generation sector,” it aid.
The Gippsland Joint Venture participants are Esso Australia (50% and operator) and BHP Billiton (50%). — I-Net Bridge