The Mereenie JV, which operates the Mereenie field in the Northern Territory, comprises Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%), and Cue (7.5%).
Cue Energy has signed a supply agreement with Shell for the delivery of 0.27 petajoules (PJ) of gas over one year, effective from January 2025.
From 1 January 2025, New Zealand Oil & Gas also agreed to deliver 0.65PJ of gas to Shell, for delivery into the East Coast domestic market. The deal covers take-or-pay provisions and has a fixed price.
This deal comes at a time when the Australian competition watchdog urged the government to curb exports in the wake of an anticipated shortfall of 56PJ of gas, equivalent to approximately 10% of the demand in 2023 in the country’s east coast, reported Reuters.
New Zealand Oil & Gas said in a statement: “Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.”
Central Petroleum has also signed a deal to supply 0.91PJ of gas to Shell Energy Australia for a one-year term, starting in January 2025.
Under the supply agreements, Shell will receive up to a total of 3.65PJ from the Mereenie JV over the one-year term.