Empire Energy Partners with Northern Territory for 10-Year Gas Supply Agreement

Empire Energy Group Limited (“Empire”) has signed a binding long-term Gas Sales Agreement (“GSA”) with the Northern Territory Government to supply up to 25 Terajoules (TJ) of gas per day for 10 years, totaling approximately 75 Petajoules, exclusively from Empire’s Beetaloo Basin properties starting in 2025. Additionally, the agreement includes an "Option Supply" clause allowing the Buyer to request an extra 10 TJ or more per day for up to 10 years, contingent on Empire's Carpentaria project achieving production levels exceeding 100 TJ per day.

Empire Energy Group Limited holds a 100% interest in EP187, where the Carpentaria Pilot Project will be situated. The company is targeting mid-2025 for the commencement of gas sales from this project, aiming to initiate production and supply as planned. This timeline aligns with the strategic goals for developing the Carpentaria Pilot Project and meeting the gas supply commitments.

Under the Option Supply, the volume is capped at 10% of the Carpentaria Project’s production if it reaches 100 TJ per day, necessitating the development of additional pipeline capacity to transport the increased supply to Australia’s East Coast or Darwin. Gas will be delivered to the Power and Water Corporation (PWC)-operated McArthur River Gas pipeline (MRP) on an ex-field take-or-pay basis, with prices set competitively and adjusted according to 100% of the Consumer Price Index. The Option Supply is offered at a slightly lower rate than the Initial Supply, potentially providing a more affordable long-term energy solution for the Northern Territory if the project scales up.

A T-piece connection has been installed by PWC into the McArthur River Gas pipeline (MRP) at the proposed location of the Carpentaria Gas Plant (CGP) to facilitate the delivery of gas from the Carpentaria Pilot Project (CPP) into the MRP. The definitive Gas Sales Agreement is contingent upon Empire's decision on the Carpentaria Pilot Project, requisite regulatory clearances from the Northern Territory for the Carbon Capture and Storage facility, and adherence to the beneficial use stipulations for test gas as mandated by the NT Petroleum Act.

Alex Underwood, Managing Director of Empire, expressed enthusiasm about the company's progress in the Beetaloo Basin, noting that Empire has been pursuing production in the area since 2011 with strong backing from the Northern Territory (NT) Government since 2018. With final approvals pending, Empire anticipates becoming the first company to supply gas from Beetaloo starting next year. Underwood highlighted the project's critical role in ensuring NT's energy security and its potential to drive significant economic benefits, including hundreds of millions of dollars in investments and local job creation.

Underwood also emphasized that the project will provide direct revenue streams for traditional owners and the NT Government, reinforcing Empire's commitment to supporting local businesses and communities. He expressed eagerness to collaborate with traditional owners, local communities, and all Territorians to successfully deliver this impactful project, which will contribute to both the economic and social development of the Northern Territory.