Oil and gas producer Beach Energy Limited (ASX:BPT) has inked a gas sales deal with Australian energy giant Origin Energy Limited (ASX:ORG).
Under the deal Origin Energy will purchase natural gas in central Australia's Cooper Basin from Beach Energy over an eight year period.
Origin Energy will buy up to about 139 petajoules of gas over the period which will be sourced from Beach Energy's share of production in three joint ventures in the Cooper Basin.
Origin Energy says the deal will enable it to bolster its east coast gas portfolio given the expected tripling in demand for natural gas.
Beach Energy says the deal is significant for the company and validates its long term strategy of positioning itself around Cooper Basin gas supply.
Beach Energy reported a net profit of $43.69 million in the first half of the 2013 financial year.
