Origin buys gas from Esso-BHP
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Origin Energy (ORG) today announced it had signed a binding gas supply agreement with ESSO Australia and BHP Billiton Petroleum (BHP) to purchase up to 432 petajoules (PJ) of natural gas from Longford in Victoria.
Under the terms of the agreement, gas supply to Origin will commence in 2014. Annual contract volumes will increase over the nine year period, with delivery points at both Sydney and Longford.
Price indexation initially reflects current pricing arrangements in the market and transitions to incorporate an oil linked mechanism.
Origin Energy Markets Chief Executive Officer, Mr Frank Calabria said, “The demand outlook for natural gas on Australia’s east coast remains robust and this substantial volume of gas secured from two of the country’s premier suppliers allows Origin to sell long term contracts to meet customers’ needs.
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