Central Petroleum has entered into a binding Letter of Intent with the Northern Territory’s Power and Water Corporation which includes in-principle terms for long-term, firm gas supply of up to 25.5 PJ (Central share) of gas from the Mereenie and Palm Valley fields through to the end of 2034.
The proposed new contracts will underwrite four new wells (two at Mereenie and two at Palm Valley) to boost gas production, with commencement of drilling targeted for mid-2026.
The supply arrangements and drilling program are seeking to quickly deliver significant new gas volumes to the Northern Territory, equivalent to over 20% of the NT’s total gas demand, while also enhancing gas supply security for customers throughout the region.
The proposed GSAs will provide Central with a reliable government-backed income stream well into the next decade without ongoing exposure to the Northern Gas Pipeline’s operations.
To read the full announcement, click here.
Source: Central Petroleum
