Posted on 13/02/2024
New Zealand Oil & Gas signs a conditional Gas Supply Agreement with Arafura Rare Earths for up to 4.8 Petajoules (PJ) of gas to be supplied for a period of up to 5 years from 2026.
New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a Gas Supply Agreement (GSA) with Arafura Rare Earths subsidiary Arafura Nolans Project Pty Limited (Arafura).
Gas supplied under the GSA will be aggregated with gas from other Mereenie field joint venturers, Central Petroleum, Macquarie Mereenie and Cue Energy Resources, to supply up to 27.4 PJ of gas to Arafura.
The GSA will commence in 2026 for a 3-year term, with a further 2-year extension subject to gas reserves being available. The GSA is for firm gas supply with take-or-pay provisions and a price that escalates with inflation. The GSA is conditional on various conditions precedent with respect to the Arafura Nolans project.
Chief Executive Andrew Jefferies said “The Nolans rare earth minerals project will deliver critical minerals vital for the permanent magnets in wind turbines and EV motors – the marvelous machines that are the transition. The criticality of these materials is recognised by the Australian Federal and Northen Territory governments, and we are proud to be playing a key role in making it happen with our homegrown Northern Territory energy supply. Gas is a three-letter word for transition. ”
The Central Petroleum release is attached. New Zealand Oil & Gas has a 17.5% participating interest, Cue Energy Resources has a 7.5% participating interest (New Zealand Oil & Gas owns 50.04% of Cue), Macquarie Mereenie has a 50% participating interest and Central Petroleum (Operator) holds a 25% participating interest in the Mereenie field.