Shell Energy Australia, a subsidiary of Shell, has signed agreements with the Mareenie joint venture (JV) participants for gas supplies from the Mereenie field, located onshore Australia.
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.