Beach Energy signs gas sales agreement with Adelaide Brighton

Beach Energy has signed a gas sales agreement (GSA) with Adelaide Brighton Cement for the supply of processed sales gas from Western Flank acreage.

Adelaide Brighton Cement is a fully owned subsidiary of Adelaide Brighton.

The gas supply is expected to commence from 1 January 2017 for a 12-month period. The new agreement will replace the ex PEL 106 raw gas sales contract.

Aside from the contract volumes, surplus production will be sold through the spot market or through new contracts.

South Australian Cooper Basin joint venture (SACB JV) will continue to purchase the LPG and condensate production from the Western Flank acreage.

Following the commencement of GSA and raw gas processing by SACB JV, Beach expects a material uplift in net revenue from its Western Flank gas acreage.

Beach Energy CEO Matt Key said: “We are pleased to announce our agreement with Adelaide Brighton, a fellow South Australian company and Beach’s first industrial gas customer. This agreement will see South Australian gas delivered to local operations.” 

"Following what was a competitive bidding process involving multiple parties, we remain firmly of the view that gas supply pressure is increasing within east coast and southern markets.

Beach Energy holds complete interest in Western Flank acreage.