Cooper basin focused oil and gas exploration company, Real Energy Corporation, executed a deal with LNG player Santos to supply gas to the east Australian gas market.
The non-binding memorandum of understanding will allow raw gas from Real Energy’s Windorah gas project to be processed into sales gas at the Moomba gas processing plant in South Australia, which can then be supplied to the east Australian gas market.
The deal comes amidst government plans to restrict liquefied natural gas (LNG) exports in order to secure enough gas supplies for domestic markets.
The two companies have agreed indicative terms for gas processing and transportation services, declining to reveal the commercial terms that form the basis of a subsequent formal binding agreement.
Real Energy added that the terms of MoU would support the economic development of the Windorah gas project.
Real Energy added in its statement that it has agreed in principle to swap geological data for its wells for geological data for a nearby well drilled by Santos.
According to an independent geologist assessment, the 3c gas resource of the project at 672 billion cubic feet of gas.