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Highlights:
- AGL shares were trading 1.178% lower on the ASX at around 3:48 PM AEDT today.
- Copper Energy announced the signing of a gas sale agreement with AGL on Thursday.
The shares of AGL Energy Limited (ASX:AGL) were trading in the red territory on the ASX during the afternoon trading hours on Thursday, despite the company not sharing any price-sensitive announcement recently. AGL's share price was quoted at AU$7.55 per share, down by 1.178%, at 3:48 PM AEDT today (10 November 2022).
With a market capitalisation of AU$5.13 billion, AGL is one of the largest energy and fuel companies of Australia, operating both retail and wholesale businesses. It provides electricity and energy services to households and businesses in the country.
The share price of AGL has appreciated by 41.4% on the ASX in the previous 12 months and, on a YTD basis, AGL’s share price has gained by almost 20% (as of 3:55 PM AEDT today).
Recent updates shared by AGL
Today Copper Energy (ASX:COE) announced that it had signed a long-term gas sales agreement with AGL. This agreement will allow Copper Energy to supply 10 PJ of natural gas every year to AGL for the next six years.
However, this agreement is subject to an affirmative response on the final investment decision on the Otway Phase 3 Development project, expected to take place in H1 CY23.
The ASX update also revealed that the agreement volumes will account for around 50%–70% of Copper Energy's share of Otway gas production from the beginning of production.
Some of the key terms of the agreement are:
- An initial supply of 8 PJ per annum, primarily from the Annie gas field, for the first three years and a declining tail.
- Chances of increased volumes to an average of 10 PJ per annum over the six-year term. However, this is dependent on achieving exploration success.
- Gas to be processed at the Athena Gas Plant, operated by Copper Energy.
- The first production targeted for 2025.
- Contract terms and gas pricing to be market-reflective in nature.
David Maxwell, Managing Director of Copper Energy, said:
