The South West Queensland Gas Producers (Delhi (ExxonMobil) 23.2% Origin Energy 16.7% and Santos (operator) 60.1%) have announced the addition of a new customer for Cooper Basin gas.
BHP Billiton has signed a new long term contract for the supply of gas to its Cannington Mine in northwest Queensland.
The company has agreed to purchase up to a total of 14 petajoules (PJ) from the Producers over 8 years with first supplies beginning December 2003 ramping up to full supply in late 2005.
"Santos is pleased to secure BHP Billiton as a new customer and to supply gas to the Cannington Mine which is one of the world's leading silver and lead producing mines, "said John Ellice-Flint, Santos' managing director.
"Cannington Mine is a significant contributor to the Queensland and Australian economies and we are delighted to assist BHP Billiton in supplying energy to their value adding operations on this world class deposit."
Last week Coal bed methane (CBM) signalled its value as an emerging fuel supplier to the Queensland market with Origin Energy signing a 15-year contract to supply CBM to Queensland Alumina Limited (QAL), which operates an alumina refinery in Gladstone, central Queensland.
Delays in the development of BHP Billiton's $260 million Otway Basin Minerva gas project have forced energy suppliers, TXU Australia and Origin Energy, to make in-principle agreements for the temporary supply of gas from the Cooper Basin.
