• New Gas Sales Agreement (GSA) signed with Shell Energy Australia to supply Australian residential, commercial and industrial customers, delivered via a newly signed Gas Transportation Agreement between SEAU and APA Group
• GSA includes a fixed price, 3-year term to supply up to 5.5 petajoules
• The fixed nature of the GSA delivers certainty for Denison to continue expanding production as well as move forward with plans to develop the Company’s significant CSG resources

Denison Gas Limited, and its affiliates (Denison), is pleased to announce that it has signed a new GSA with Shell Energy Australia Pty Ltd (SEAU), a wholly owned subsidiary of Shell, for developed and uncontracted volumes from its conventional and unconventional gas fields in the Bowen Basin, Queensland.

The GSA is for a fixed three-year term to supply up to 5.5 petajoules of gas commencing 1 January 2023. The agreement developed by Denison and SEAU facilitates rapid provision to market of production from the Company’s recent five-well drilling program, incremental to Denison’s existing contractual commitments with customers.

In addition to the recent five-well campaign, Denison is undertaking in-field de-bottlenecking activities and further development drilling in early 2023 that it anticipates will uplift future production.

The GSA with SEAU provides the dual benefit of enabling early sale of the gas during a period when the market is in need of additional supplies to avoid forecast shortfalls, as well as providing long-term revenue certainty for Denison to underpin exploration and development activities for further extension and expansion of gas production.

Mr Benson Wong, CEO of Denison, commented:

“This new GSA with Shell represents a significant milestone for Denison and with key terms fixed, providing Denison with certainty to continue expanding our conventional gas reserves as well as moving forward with plans to develop our significant unconventional CSG interests. We are pleased to be working with Shell and look forward to ongoing collaboration.”

David Guiver, Shell Energy Australia Vice President Trading said:

“We’re pleased to work with Denison to bring more gas to domestic customers. This agreement provides certainty of supply and crucially will underpin development of new sources of supply, the only certain way of putting downward pressure on prices.”

About Denison:

Denison is a gas production and exploration company focused on both efficiently increasing its existing conventional gas production and developing the significant CSG resources within its Denison Trough tenement areas. 

Since April 2019, the Company has operated 14 gas fields, 2 gas processing facilities, 4 additional gas compression facilities and a 200-kilometre gas pipeline network connected to the Jemena operated Queensland Gas Pipeline.

Following the restart of its Denison North project in early 2020, the Company embarked on a program to bring its remaining 2P conventional gas reserves into production, to fill its available gas processing capacity, to meet its executed gas sales agreements through to 2025, and to allow contracting of new gas sales. Denison is also focused on development of its contingent CSG resources to position itself to become a significant independent producer into the East Coast gas market. 

More information regarding Denison is available at www.denisongas.com.au.

For further enquiries, please contact Denison at info@denisongas.com.au

PDF: Media Release – Denison Announces new GSA with Shell Energy Australia