As the oil price enjoys slight recovery energy players have revealed deals and more savings and raising have been announced.
Energy deals
AGL Energy Limited
(ASX:AGL) has secured a gas transportation deal on the Eastern Gas Pipeline, a key supply artery between Victoria and New South Wales. The energy giant has inked a deal with Jemena Eastern Gas Pipeline to purchase capacity on the pipeline over 15 years from next year.
Paladin Energy Limited
(ASX:PDN) will pay approximately $15.8 million for the Carley Bore Uranium project in Western Australia’s Carnarvon Basin. Paladin will pay Energia Minerals Limited
(ASX:EMX) $1.6 million in cash and 45 million shares in Paladin for the deposit.
Incitec Pivot Limited
(ASX:IPL) has signed a letter of intent with Real Energy Corporation Limited
(ASX:RLE). The deal is a first step in negotiations for the sale of gas from Real Energy’s Cooper Basin gas project and the two companies intend to work closely together towards a binding Gas Sale Agreement.
Money saving & raising
AGL Energy Limited
(ASX:AGL) has flagged about $1 billion in asset sales and $200 million of cost cuts. The energy giant says the non-strategic and under-performing asset divestments and capital reductions will be made by the end of fiscal 2017.
Liquefied Natural Gas Limited
(ASX:LNG) has raised $174 million and received the last of the initial approvals for its Bear Head LNG Project in Nova Scotia. The project is now the only LNG project in Eastern Canada with all of the 10 project approvals and permits in place necessary for construction.
Empire Oil and Gas NL
(ASX:EGO) is preparing to put itself on the map as a significant gas player. The junior explorer has received a huge cash injection from the second tranche of its gas supply contract with Alcoa.
Monetising low emissions energy
Speaking at the ASX Investor Series in Sydney Energy Developments Limited
(ASX:ENE) Managing Director, Greg Pritchard outlined the company’s offering.
Energy Developments is a provider of low emissions energy and Mr Pritchard explains, “Landfill gas and waste coal gas comprise our core clean energy business. That’s removal of methane from underground coalmines and coke and coal landfills. And that means that that product is being used for power generation, rather than being wasted through flaring.”
Energy Developments has been involved in the Federal Government’s emission reduction auction which Mr Pritchard says is having a very positive impact.
Looking ahead Mr Pritchard expects substantial growth to continue in its core businesses of clean energy and remote energy, “We certainly have the cash flow to be able to do it and our growth program continues unabated, notwithstanding the cycles that we’re seeing.”
