Real Energy has signed a memorandum of understanding (MoU) with Santos to enable raw gas from Real’s Windorah gas project to be processed into sale gas and supplied to the east Australian gas market.
Santos, together with its joint venture partners, have gas processing facilities at Moomba in South Australia.
Real Energy and Santos – which operates the Moomba gas plant – have agreed upon the terms for gas progressing and transportation services in the Cooper Basin gas gathering network.
Real Energy has also agreed to swap geological data of its wells for geological data of a nearby well drilled by Santos.
The MOU is a key step for the commercialisation of the Windorah project in the Cooper Basin, which contains 672 billion cubic feet of gas.
Real Energy managing director Scott Brown said the MoU provided a clear pathway to commercialising the company’s gas without having to build a gas plant and other associated infrastructure.
“Our confidence in the commercial viability of the Windorah gas project continues to grow given the improving flow rates occurring on the Tamarama-1 well,” he said.
“As well, the field has a great deal of future development capacity and we are only just starting to unlock its value.”