Beach, Origin in dispute over gas prices
Angela Macdonald-SmithSenior Resources writer
May 7, 2020 – 2.07pm
The slide in east coast gas prices over the past few months has pushed Beach Energy and Origin Energy into a dispute over the price Origin will pay under major gas supply contracts, with a lengthy arbitration process set to play out through this year.
NB The Lattice contract between BPT and Origin Energy is to last up to 2030 with price review every 3 years. The current dispute over gas price will not affect the 2030 term of the Lattice contract. I think BPT wants $9 per GJ and Origin Energy is willing to pay only $7 per GJ. My view is the Arbitration people will most likely set the gas price somewhere in the middle.
Beach, Origin in dispute over gas prices [IMG] Angela...
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