Central Petroleum Limited announced that its existing two year Gas Supply Agreement (GSA) with South32 Cannington Pty Ltd. has been extended for a further 12 months to include supply of an additional 0.36 PJ of gas in 2025. The GSA is for firm gas supply to Mt Isa, with take-or-pay provisions and a price that escalates with the consumer price index. Gas supplied under the GSA will be aggregated with existing Mereenie gas supply from MM, NZOG and Cue in order to deliver up to 1.46 PJ of gas to South32 in 2025.

Consistent with broader marketing activities, the renegotiated ex-field pricing under the GSA reflects strong market conditions. The Mereenie JV will need to enter into required gas transportation agreements, which is a condition precedent to the GSA. Central expects to bring further gas to market, having increased its production capacity through the commissioning of the Palm Valley 12 well in November 2022 and recent well recompletions at Mereenie.