New Supply Agreement Increases Cash Flow Certainty
Brisbane, Oct 21, 2025 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (C9J:FRA) (CNPTF:OTCMKTS) announces that its wholly owned subsidiary has signed a GSA with MRM for the supply of 1.3 PJ of gas over two years, commencing 31 December 2025. The GSA is for firm gas supply, ex-field, with take-or-pay provisions and at a fixed price.
Highlights
- Central Petroleum Limited ("Central") will supply 1.3 Petajoules ("PJ") of gas (net to Central) to McArthur River Mining Pty Ltd ("MRM") in 2026 and 2027 under a new gas supply agreement ("GSA").
- The new GSA is for firm gas supply, with take-or-pay provisions and a fixed price, increasing cash flow certainty for Central.
New Gas Supply Agreement
Gas supplied under the GSA will be aggregated with existing Mereenie gas supply from the other Mereenie JV participants (Echelon Mereenie Pty Limited, Horizon Australia Energy Pty Ltd and Cue Mereenie Pty Ltd) to deliver up to 4.9 PJ of firm gas in 2026 and 2027 (Central share 1.3 PJ).
Leon Devaney, Central's Managing Director and Chief Executive Officer commented, "Gas from the Amadeus Basin, which is reliable and backed by proven reserves, is very attractive to customers given the significant uncertainty in the current gas market. We are delighted to execute this GSA, using flexibility within our previously announced supply portfolio to allocate gas to MRM and extend our successful relationship for a further two years. As a result, this GSA provides increased cash flow certainty and means that all of our existing expected firm gas production over the next two years is contracted. Notwithstanding the execution of this GSA, we remain in active commercial discussions for various value accretive transactions, including the potential sale of gas from proposed new wells under long term arrangements.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
| ||
|
