Orica, Strike ink off-take deal
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Orica Ltd and Strike Energy Ltd have struck a gas off-take deal that will see Orica get access to 150 petajoules of gas over the next 20 years or so by part-funding the commercialisation of Strike’s coal seam gas project in the southern Cooper Basin.
The groups described the deal as an "innovative risk-sharing arrangement".
Under the deal Orica subsidiary Orica Australian Pty Ltd will make gas pre-payments of up to $52.5 million in exchange for its gas off-take.
Orica managing director Ian Smith said the agreement could provide "a future new source of gas supply to our Australian east coast manufacturing plants at an affordable price".
Strike has estimated it has a resource of between 6.3 and 16.4 TCF in shallow coal seams in the basin.
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