Origin buys gas from Esso-BHP

Origin has announced a gas supply agreement to secure gas from Bass Strait at oil-linked prices.

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.

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