AUCKLAND, NZ: New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) has executed a new Gas Supply Agreement (GSA) with Shell Energy Australia (Shell) to supply 0.64 PJ of gas over one year, commencing 1 January 2025.

The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 3.65 PJs to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.

Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions.

The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.