Central signs 9.85PJ Gas Supply Agreement

Central signs 9.85PJ Gas Supply Agreement
Central Petroleum Limited (“
Central
”) today announces a Gas Supply Agreement (“
GSA
”) has
been signed for the delivery of 9.85PJ of gas over five years to the Northern Territory Pine
Creek Power Station operated by EDL NGD (NT) Pty Ltd (“
EDL
”). Under the GSA, Central as
operator has the right to supply gas from Me
reenie, Dingo or Palm Valley, and is structured
as a delivered $AUD fixed price gas supply contract (subject to escalation based on CPI). The
start date for gas supply will be no later than 1 June 2017, unless mutually agreed otherwise.
The agreement (including the obligation to supply gas) remains subject to satisfaction of
certain conditions precedent, including execution of already negotiated gas transportation
arrangements, by 31 May 2017 (unless extended by mutual agreement). The GSA was signed
by Central Petroleum Mereenie Pty Ltd (a wholly
owned subsidiary of Central) as trustee of
the Central Petroleum Mereenie Unit Trust and EDL.
Negotiations have been underway for some time and became a priority after the National
Market Reform Group decided to exclude the Amadeus and Carpentaria Pipelines from the
COAG endorsed Vertigan reforms. The expecta
tion of a GSA was taken into account by the
Board in unanimously recommending the improv
ed proposal received from Macquarie MPVD
Pty Ltd announced to the ASX on 10 March 2017.