Key has entered into a memorandum of understanding (MoU) with Santos and its joint venture partner Beach Energy to cover proposed terms for the connection and transport of gas from Key’s Tanbar Gas Project into the gas gathering network and gas processing facilities at Moomba.
The MoU will form a basis for the negotiation of future formal processing and transportation agreements for the project’s gas as the company looks to supply the east coast market.
Located in ATP924 in Queensland’s Cooper-Eromanga Basin, the gas development has 14 billion m3 of prospective un-risked 2U resources and Key says the Moomba deal will support potential economic development of gas discoveries in the prospect.
“We are delighted to be working with Santos and Beach Energy and this MoU demonstrates a clear pathway to commercialisation of future gas discoveries within our Tanbar Gas Project, subject to final binding terms being agreed,” said Key Managing Director Kane Marshall.
“Importantly, there is flexibility for financing of future developments whereby capex intensive gas processing infrastructure may not be required if it can be processed and transported via Santos-operated infrastructure in the manner contemplated by this MoU.”
The commercial terms of the deal have not been revealed.
For more information visit the Key Petroleum website.
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