Amplitude Energy (ASX:AEL) has formalised a binding foundation gas sales agreement with AGL Energy, marking a pivotal milestone for the East Coast Supply Project.
Under the terms of the agreement, Amplitude will supply a total of 20 petajoules of natural gas to AGL over an initial four-year period, averaging 5 PJ per annum.
The pricing structure for the GSA is oil-linked, designed to align with prevailing market conditions and rates.
Operations and supply are currently targeted to commence in the second half of 2028, pending the successful results of the ECSP’s ongoing drilling campaign to confirm necessary reserve bookings and deliverability.
Jane Norman, Managing Director and CEO of Amplitude Energy, expressed enthusiasm for the deal, noting that it extends a long-standing partnership between the two companies.
She emphasised that the agreement underscores the robust demand for reliable domestic gas within Southeast Australia and demonstrates mutual confidence in the ECSP’s potential.
AGL Chief Commercial Officer David Moretto reinforced this sentiment, stating that the contract is central to AGL’s strategy to secure long-term supply and underpin new production.
Moretto highlighted that natural gas remains a critical component in "firming" large-scale renewable energy and maintaining system reliability for customers throughout the ongoing energy transition.
At the time of reporting, Amplitude Energy's share price was $1.76.