Mereenie to market
CENTRAL Petroleum has announced a Mereenie joint marketing agreement to facilitate the upgrading of the Mereenie reserves so they coordinate with the commissioning of the Jemena pipeline to the east coast gas network.
Helen Clark
26 September 2017 08:42 News
The news comes as both sides of politics bring pressure to bear on Queensland LNG suppliers for more gas to go into the domestic market amid shortage fears.
The agreement is subject to approval from the Australian Competition and Consumer Commission and a public submission for interim approval is planned shortly.
"The Mereenie JMA provides independence and certainty to both of the joint venturers clearing the way for either of us to upgrade the Mereenie resources so that first day delivery of gas can coincide with the NGP becoming operational," managing director Richard Cottee said.
"If approved by the ACCC it will signal a significant new supplier in the east coast gas market at a time when the country urgently needs new competitors in the domestic gas market."
These joint marketing terms have been agreed to by the Mereenie joint venture participants and Macquarie Mereenie, and once in place budget approvals to commercialise more of the Mereenie reserves will be sought.
This will include the appraisal of the Stairway as a production zone, with the well due in January.
The deal also provides the certainty of being able to pursue sales for additional gas produced by allowing both parties to approve the capital investment required for any appraisal and development to expand production.
Central is going forward with plans for the drilling of two Mereenie wells using the funds raised in the $27.3 million equity raising of August this year.
Central acquired a 50% share of the field from Santos in June 2015 and became in September that year.
The government released the ACCC's interim report Monday noting that east coast supplies were low, and pushing up prices.
The government is again looking at triggering the Australian Domestic Gas Security Mechanism to ensure supply.
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