The term sheet sets out the commercial terms for the sale of 15 TJ/d of gas, or 5.5 PJ/a, to AGL from the Waitsia Gas Project.
This equates to 15 per cent of Stage 2 nominal daily production capacity and represents a material contribution toward underwriting the project.
“Today’s announcement is a significant step in the development of Stage 2 of the Waitsia Gas Project,” said AWE Managing Director and CEO David Biggs.
“AGL is one of Australia’s leading integrated energy companies and we are pleased to be able to contribute to their entry into the Western Australia market with the first gas sale from Waitsia Stage 2.
“We are aiming to finalise the Gas Sales Agreement with AGL by mid-2017 and we anticipate completing term sheets with other customers over the coming months.”
Waitsia Stage 2 is currently in Pre-Front End Engineering and Design (FEED) and is on track to enter FEED in the June quarter.
AWE is targeting Final Investment Decision (FID) by the end of calendar year 2017, subject to completion of FEED and further gas sales agreements.
Stage 2 will have capacity to supply 100 TJ/d, or 10 per cent of Western Australia’s domestic gas needs, for ten years.
AWE is targeting first gas from Stage 2 in 2020.
AWE and Origin each hold a 50 per cent interest in the Waitsia gas field and are jointly marketing Stage 2 gas.