Key Petroleum’s subsidiary Key Cooper Basin has signed a memorandum of understanding (MoU) with Santos and wholly owned subsidiaries of Beach Energy for the processing of gas from its Tanbar gas project.
The non-binding MoU contains terms that will form the basis for a future formal processing and transportation agreement to be negotiated in the future.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
If a binding agreement is finalised, Key will be able to secure gas processing and transportation services from the Tanbar project in ATP 924 in south-west Queensland.
It will enable raw gas to be processed into sales gas to supply the gas market in the Australian east coast.
Under the terms of the MoU, Key seeks connection and transport into the Cooper Basin gas gathering network, as well as gas processing at the Moomba gas processing facility in South Australia.
The Moomba plant is operated by Santos under a joint venture with Beach Energy.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKey Petroleum managing director Kane Marshall said: “We are delighted to be working with Santos and Beach Energy and this MoU demonstrates a clear pathway to commercialisation of future gas discoveries within our Tanbar Gas Project, subject to final binding terms being agreed.
“Importantly, there is flexibility for financing of future developments whereby CapEx intensive gas processing infrastructure may not be required if it can be processed and transported via Santos-operated infrastructure in the manner contemplated by this MoU.”
ATP 924 is estimated to contain current gross unrisked prospective resources of 500 billion cubic feet of gas.
Key management believes the terms of the MoU will help the company’s efforts to commercialise future conventional gas discoveries.
