Origin Energy Limited has reported the signing of a binding Heads of Agreement for gas supply with GLNG partners, providing Origin with a pathway to monetise its portfolio of fuel resources in line with international oil-linked pricing.
Under the terms of the agreement, Origin will supply GLNG with 365 petajoules (PJ) of gas or 100 terajoules (TJ) per day over 10 years at Wallumbilla, commencing in 2015. The gas will be sourced from Origin's east coast portfolio.
Origin Managing Director, Grant King said, 'The gas sales agreement with GLNG will deliver significant value to Origin, opening an export channel to market for our legacy fuel reserves and allowing a more rapid monetisation of the resource in line with international oil-linked pricing.
"The transaction demonstrates the strength and value inherent in Origin's diverse and flexible portfolio of physical and contracted fuel resources, which has positioned the company to capitalise on the growing demand for gas in the energy markets of Asia," Mr King said.