Cooper Energy secures growth with gas offtake agreement

The Sole project is located in the Gippsland Basin. Image: Cooper Energy

Cooper Energy is continuing to expand its gas contract portfolio with the announcement of a new supply agreement with AGL Energy.

Adelaide-based Cooper will provide the energy major gas from its Sole and Casino Henry operations in the Gippsland Basin and Otway Basin, respectively.

The deal represents the first sale for Cooper’s nascent Sole gas field project, which the company said was poised to become southeast Australia’s newest gas source once its Orbost gas plant is completed. The Sole project is expected to deliver 68 terajoules of natural gas a day to southeast Australia.

AGL Energy will take a share of Sole’s 2019 calendar year production and up to four petajoules over the first four months of 2020 as an extension to a previous agreement.

Cooper managing director David Maxwell said AGL Energy’s commitment was critical to proceeding with the ambitious project.

“Having been there as a customer which supported project finance it is fitting we now have agreements with AGL Energy for the supply of gas right from commissioning,” he said.

“The extension of our supply relationship with AGL Energy to now also include Casino Henry reflects our multi-basin strategy under which we can offer a portfolio of sources.”

Casino Henry, a joint venture between Cooper (50 per cent), Mitsui and Peedamullah Petroleum (25 per cent each), is in the on- and off-shore Otway Basin on the south coast of Australia.

AGL will take 100 of Cooper’s share of gas production from Casino Henry for the 2020 calendar year as part of the arrangement.

The news follows an AGL announcement in May that outlined it had entered into a gas supply agreement in the Gippsland Basin with BHP for 78 petaljoules (due to commence from April 2020).

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