State utilities Verve Energy and Synergy have signed domestic supply contracts with Chevron that will shore up Western Australia’s gas supply for the next 20 years.
The supply agreements, for gas from Chevron’s $40 billion Gorgon development, will be activated to coincide with the expiration of Verve and Synergy’s gas supply arrangements in 2015-16.
Verve and Synergy will be supplied with a combined 125 terajoules of gas per day for the 20 year length of the contract.
Energy Minister Peter Collier announced the agreements last night, saying they provided a long-term and reliable energy supply for Western Australia.
“Energy security is vital to our state’s ongoing growth and development and the Liberal-National government is ensuring it is doing everything possible to provide West Australians with a secure, reliable and sustainable energy future,” Mr Collier said in a statement.
Synergy chief executive Trevor James said the announcement was vitally important for local industry.
“Our agreement provides longer-term security for retail customers who rely on gas for their processes,” Mr James said in a statement.
“It may also assist us in gas tolling for generation, as we transition to a more carbon-friendly fuel mix.”