Origin Energy Limited (ASX:ORG) has inked a deal to sell gas from its Queensland coal seam gas reserves to a joint venture called Gladstone LNG.
The joint venture includes Santos Limited (ASX:STO), France's Total, Korea Gas Corporation and Malaysia’s Petronas.
Origin will supply Gladstone LNG with 365 petajoules of gas over 10 years from 2015, however the value of the deal has not been disclosed.
Origin Managing Director Grant King says the deal will deliver significant value through opening an export channel to market for Origin’s legacy fuel reserves and allowing a rapid monetisation of the resource in line with international oil-linked pricing.
Origin has also today announced its largest ever wind power purchase agreement in which it will be supplied renewable energy from TrustPower’s planned Snowtown II wind farm in South Australia.
Origin reported a net profit of $823 million in the last six months of 2011.
