Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Central Petroleum (CTP) has signed an agreement to develop its proposed Amadeus to Moomba gas pipeline
  • The company signed the agreement with the Australian Gas Infrastructure Group and Macquarie Mereenie
  • The proposed pipeline will link the Amadeus Basin in the Northern Territory to the gas supply hub of Moomba in South Australia
  • As part of the agreement, the three companies expect to have a final investment decision for pipeline’s development-ready by the second half of 2021
  • Central Petroleum shares are grey at market open, trading for 8.9 cents

Central Petroleum (CTP) has signed an agreement to develop its proposed Amadeus to Moomba gas pipeline.

The company signed the agreement with the Australian Gas Infrastructure Group (AGIG) and Macquarie Mereenie to develop the proposed pipeline, which would link the Amadeus Basin in the Northern Territory to the gas supply hub of Moomba in South Australia.

As part of the agreement, Central Petroleum is hoping to have a final investment decision for pipeline’s development-ready by the second half of 2021.

Through the memorandum of understanding the three companies have agreed to pursue a series of development milestones, which include a foundation gas transportation agreement and the aforementioned final investment decision.

The companies have also agreed on an initial tariff structure, gas storage services and other site logistics.

Central Petroleum already supplies gas to customers within the Northern Territory and the Queensland city of Mt Isa.

Currently, gas produced in the Northern Territory embarks on a 2,200-kilometre journey before it reaches the Moomba, where it is then fed into pipelines to New South Wales and Victoria. Central’s pipeline would halve that journey, leading to greatly reduced transportation costs for producers.

Central’s CEO and Managing Director, Leon Daveney, believes the implications of the pipeline are huge for the entire east coast gas market. He went on to comment on the new agreement.

“I am very excited to be working on this important energy infrastructure project with Macquarie Mereenie and AGIG, two highly competent and proven participants in the gas and pipeline sectors,” he said.

Central Petroleum shares are grey at market open, trading for 8.9 cents at 10:14 am AEST.

CTP by the numbers
More From The Market Herald

" Strike Energy (ASX:STX) shares dip on Q4 2021 report

Strike Energy (ASX:STX) is working toward first cashflows following successful appraisal results over the December quarter…
Whitehaven Coal (ASX:WHC) - MD and CEO, Paul Flynn

" Whitehaven Coal (ASX:WHC) highlights production dip amid bad weather and COVID impacts

Shares in Whitehaven Coal (ASX:WHC) have fallen this morning after the company flagged soft production for…
Province Resources (ASX:PRL) - Managing Director David Frances

" Province Resources (ASX:PRL) pushes ahead with hydrogen project

Province Resources (ASX:PRL) reports cash balance of $22.4 million in quarterly report

" Brookside Energy (ASX:BRK) partners with large US oil producers

Brookside Energy Limited (BRK) updates on the Rangers Drilling Spacing Unit (DSU) in its SWISH area…