Origin announces long term gas supply agreement with MMG
20 December 2012
Origin Energy Limited (Origin) today announced the signing of a long-term gas sales agreement with the MMG group (MMG), providing a pathway for the company to monetise its gas resources at attractive prices.
Under the terms of the agreement, Origin will supply MMG, a mid-tier global resources company, with gas for its existing Century Mine and the development of the Dugald River project. Origin will supply MMG with a total volume of up to 22 petajoules (PJ) of gas over a seven year period, commencing with supply to Century mine 2013. The gas will be sourced from Origin’s east coast fuel portfolio.
Origin Chief Executive Officer Energy Markets, Mr Frank Calabria said, "The signing of a large domestic gas sales agreement with MMG is testament to the strength and flexibility of Origin's portfolio of gas resources, and demonstrates the company's ability to benefit from the anticipated tripling in gas demand in eastern Australia.
"The MMG gas sale, together with the recent gas sale to GLNG partners, stands to deliver value to Origin shareholders, as it allows the Company to rapidly monetise its resources in line with rising gas prices.
"The agreement also demonstrates that the development of the east coast CSG to LNG industry can co-exist alongside reliable gas supply to domestic users," Mr Calabria said.
Origin has a substantial reserves position and access to a portfolio of gas development opportunities, which could be developed to meet the growing demand for gas.
MMG Limited is a mid-tier global resources company which explores, develops and mines base metal projects around the world. It is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange.
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About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 5,900 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.4 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with approximately 5,900 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia’s largest 2P CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au.
About MMG Limited
MMG Limited is a mid-tier global resources company which explores, develops and mines base metal projects around the world. It is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange. The Company owns and operates the Century, Golden Grove and Rosebery mines in Australia, the Kinsevere mine in the Democratic Republic of Congo (DRC) and the LXML Sepon mine in Laos. Its major development projects include Dugald River and the Izok Corridor base metals project in Nunavut, north-west Canada. The Company also has significant exploration projects and partnerships in Australia, Africa and the Americas. It is one of the world's largest producers of zinc and also produces significant amounts of copper, lead, gold and silver.