Central Petroleum Limited announces a new GSA has been executed with South32 for 0.55 PJs of gas supply over two years, commencing 1 January 2023. 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. The GSA commercialises a portion of existing uncontracted production.

Gas supplied under the GSA will be aggregated with existing Mereenie gas supply from MM, NZOG and Cue in order to deliver up to a total of 2.19 PJs to South32 over the two-year term. Similar to recent transactions, the ex-field pricing under the GSA reflects strong market conditions. Central expects to bring further gas to market from 2023 now that it has completed its current Palm Valley 12 well and following planned development activity at Mereenie.