NZ Oil and Gas signs a supply agreement with Shell Australia for the East Coast market

NZ Oil and Gas signs a supply agreement with Shell Australia for the East Coast market

View of a sign with the Shell logo at the company’s filling station in St. Petersburg, Russia, on May 6, 2022. REUTERS/Anton Vaganov/File Photo

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September 15 (Reuters) – New Zealand Oil and Gas (NZOG) Ltd. (NZO.NZ) announced that it had signed a one-year contract with Shell. (SHELL) The Australian plant will supply 0.64 petajoules (PJ) of gas from its Merini gas field starting in 2025 to supply the Australian East Coast domestic market.

The deal comes at a time when Australia’s east coast is forecast to face a gas shortage of 56 PJ, equivalent to about 10% of demand, in 2023, prompting the country’s competition watchdog to urge the government to restrict exports. read more

The market is under pressure as the protracted Russian-Ukrainian war, along with sanctions against Russia, has disrupted supply chains and caused natural gas price volatility.

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“Gas will be supplied to the East Coast domestic market, with prices under the GSA (Gas Supply Agreement) reflecting strong market conditions,” NZOG said in a statement.

The Mereenie Joint Venture (JV), which is developing a field in Australia’s Northern Territory and controlled by three companies including NZOG, will supply Shell Australia with up to 3.65 PJ of gas over one year, NZOG said on Thursday. (https://bit.ly/3Uf0vqb)

New Zealand Oil and Gas (NZOG) directly or indirectly owns a 25% stake in JV Central Petroleum. (CTP.AX) owns another 25% and the rest is owned by a division of the Macquarie Group (MQG.AX).

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Reporting by Arishma Iyer in Bangalore; Edited by Devika Shyamnath and Sinjini Ganguly

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