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Barossa Gas Project: Learn more

Santos Group, as Operator for the Mereenie Joint Venture, announces that a new gas contract for 67.5 petajoules of gas was signed today between the Mereenie Producers and Gasgo Pty Limited, a subsidiary of the Northern Territory Power and Water Authority (PAWA).

The contract is expected to be worth over $200 million to the Mereenie Producers over the life of the contract. The contract, the largest yet for gas from the Mereenie field, will require the capacity of the current gas plant to be increased by 150%.

Mereenie, located 250 km west, south west of Alice Springs, has produced gas for Northern Territory requirements since 1987. The gas supplied under the new contract will be used by PAWA for power generation at a number of sites, including Channel Island, Darwin. The new contract is the third between the Mereenie Producers and Gasgo and has been signed to ensure secure supply of gas for the Territorys continually growing power requirement, brought on by new developments and a rapidly increasing population.

The new contract increases the total commitment to PAWA to 158.5 PJ.

Subject to requisite approvals, the contract is expected to commence in 1999 and conclude in 2009.

Commenting on the new contract, Mr Rod McArdle, General Manager – Queensland and Northern Territory said:

The new contract and the necessary expansion of the gas plant and field facilities at Mereenie represent the most significant development since the commencement of gas supply to Darwin in 1986/7. Santos and its co-venturers at Mereenie are looking to further development of both the gas and oil potential at Mereenie as the field is now the major supplier of gas to the Territory. As well, major investments continue to be made to enhance the oil production in the area.

The interests of the Mereenie Joint Venture are:

  • Santos Group 65%
  • Magellan Petroleum Group 35%