Verve Energy has reached a landmark gas supply agreement with the Gorgon joint venture.
Managing Director Shirley In’t Veld said the commercial agreement gave Verve Energy diversity of its gas sources and would partially replace the gas supply arrangement with North West Shelf which was forecast to run out in 2015/16.
Verve Energy and Synergy have signed 20-year agreements for a combined 125 terajoules a day, starting in 2015.
Ms In’t Veld said: “Facilitated by the Domestic Gas Reservation Policy, this gas supply agreement will cover about 50 percent of Verve Energy’s forecast daily gas requirements. Discussions are continuing with other potential suppliers.
“Verve Energy uses gas to generate about 35 percent of its electricity.”
Ms In’t Veld said Verve Energy will continue its program of continuous improvement to control its costs and minimise the impact of rising costs.
Verve Energy is the largest generator in the WA electricity market, supplying about 60 percent of the State’s electricity.
Peter Winner 9424 1977, 0429 041 840