AWE Limited and its joint venture partner, Origin Energy, agreed a non-binding terms sheet with AGL for the first gas sale from the second stage of the Waitsia gas project.
The term sheet sets out the commercial terms for the sale of 15 TJ per day of gas, or 5.5 PJ per year, to AGL from Stage 2 of the Waitsia gas project, the two companies said in a statement.
This equates to 15 percent of Stage 2 nominal daily production capacity and forms a basis for the gas sale deal AWE expects to have concluded by mid-2017. However, AWE has not disclosed the terms and price of the deal.
AWE and Origin Energy, that holds a 37.5 percent stake in the Australia Pacific LNG project, both own 50 percent in the Waitsia Stage 2 and are jointly marketing the project’s capacity.
According to the AWE’s statement, the project will have the capacity to supply 100 TJ per day or 10 percent of Western Australia’s domestic gas needs, for 10 years. First gas is expected in 2020.
The Waitsia Stage 2 is in the pre-front end engineering and design phase with a view to entering FEED in June quarter. A final investment decision by the end of 2017.
David Biggs, CEO and managing director of AWE Limited added that the company is expecting to complete term sheets with other customers over the coming months.