Look back at 2020 - Alcoa of Australia sign GSA with Warrego Energy

As we head towards the end of what has been a globally challenging year for us all, we wanted to reflect back positively at what became one of the most significant milestones in Warrego’s history, signing a Gas Sales Agreement (GSA) with Alcoa of Australia for the delivery of a total volume of 155 petajoules of natural gas.

It’s taken over 13 years, but Warrego Energy is about to become a recognised name in onshore, conventional gas exploration and production. It sounds cliched but teamwork really did make the dream work as the signing of the GSA was a major step in realising our ambition to become a major WA gas producer.

The announcement at the end of September, with one of WA’s leading gas buyers, for the long-term supply of a total of 155 petajoules of natural gas from the West Erregulla gas field has catapulted Warrego squarely into the Western Australian gas market limelight.

A joule is a measure of the energy required to produce one watt of power for one second. To put the size of the contract into perspective, one petajoule is a quadrillion joules – a one followed by 15 zeros (a million billion), roughly the equivalent to the amount of energy used by 19,000 homes in a year. Our contract with Alcoa is for the supply of 155 petajoules!

Michael Gollschewski – President of Alcoa Australia and four members of his senior management team were invited to our new Perth offices to sign off the historic agreement in a ceremony hosted by Warrego’s General Manager Commercial, Cathy McKeagney and her Perth based colleagues.
Top Row: Jani Surjan - Group Financial Controller (Warrego), Chris Harrison - Senior Legal Counsel (Alcoa), Suzanne Bentley - Energy Coordinator (Alcoa), Nick Eaton – Energy Manager Australia (Alcoa), Stuart Nichol - Technical Manager (Warrego)

Bottom Row: Tanya Simmonds – Director, Australian Controller – Alcoa of Australia, Michael Gollschewski – President of Alcoa of Australia, John Newman, General Counsel and Company Secretary, Warrego,  Cathy McKeagney - General Manager Commercial, Warrego
Bringing some typically Scottish tradition to the Perth Basin, Cathy presented Michael with a bottle of Warrego whisky.
Unfortunately, Covid19 restrictions prohibited the Warrego whisky being consumed in the traditional Scottish celebratory manner by sharing drinks from a quaich, a double-handled silver communal drinking cup!

The COVID19 restrictions also prevented Warrego group CEO & MD Dennis Donald from attending the most significant event to date in Warrego’s history but he was no less ebullient as he joined by video link from 9000 miles away along with CEO – Australia David Biggs from Melbourne.

“We are very pleased to conclude a long-term GSA with Western Australia’s largest and most experienced gas buyer, Alcoa,” Dennis said.

“The nature and scale of the contract means no further GSAs are required in order for Warrego to commit to bringing the field into production which is testament to the strength of our team in Perth and a tremendous validation of our gas marketing strategy.”
Michael Gollschewski talks to Dennis Donald in Aberdeen and David Biggs in Melbourne via video link.
Cathy McKeagney: “Signing this ground-breaking deal with Alcoa sees Warrego transition from Explorer to Producer, something that Warrego has aspired to for many years, and something we are delighted to raise a glass to!”

Warrego now awaits the results of the WE-3 well currently being drilled by the joint venture which, if successful as expected, will pave the way towards a decision to commit to the development of the West Erregulla field.

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