Power company ENGIE has signed an electricity offtake agreement with Origin Energy
(ASX:ORG) which is expected to boost energy security in South Australia.
Under this deal, Origin will provide gas to Pelican Point power station for a fixed charge. Origin will also have access to 240MW of electricity, which it will use to meet the energy needs of South Australian customers.
This contract will run from 1 July 2017 until 30 June 2020. Origin says this deal will “better position Pelican Point to support peak demand over the 2017/18 summer period”.
Both companies also signed a Gas Sales Agreement, under which Origin will sell 8 Petajoules of natural gas to ENGIE in Australia across the 2018/19 calendar years.
This morning, Origin shares are tracking 1.3% higher at $7.02.
