Amplitude Energy Limited has secured a binding Gas Sales Agreement with AGL Energy for the supply of 20 PJ of gas over a four-year initial term, with deliveries commencing in the second half of 2028. The agreement represents a foundation contract for Amplitude’s East Coast Supply Project and underscores the company’s progress in securing long-term revenue visibility for its expansion into Southeast Australia’s domestic gas market.
The financial structure of the GSA reflects prevailing market conditions with an oil-linked pricing mechanism, meaning AGL will purchase 5 PJ of gas annually at prices that track crude oil markets. This arrangement aligns with industry practice for large-scale gas contracts and provides Amplitude with inflation-protected cash flows during the initial four-year term. The deal’s execution signals that major energy retailers remain willing to commit to domestic gas supply contracts despite the current market uncertainty surrounding East Coast gas availability.
For investors, the agreement carries strategic significance beyond its immediate commercial value. AGL Energy represents one of Australia’s largest energy retailers with substantial customer bases across multiple states. The company’s willingness to sign a foundation contract demonstrates confidence in Amplitude’s delivery capability and addresses a critical market need for reliable domestic supply. AGL’s Chief Commercial Officer noted that gas remains essential for firming large-scale renewables, positioning this contract within the broader energy transition narrative that will likely support demand for domestic supply over the medium term.
The GSA does include a material contingency. The agreement remains conditional on results from the current ECSP drilling campaign confirming minimum levels of reserve bookings and deliverability. This clause means Amplitude must successfully prove up sufficient gas resources and demonstrate the technical capability to deliver the contracted volumes before the GSA becomes unconditional. The drilling campaign outcomes will therefore prove critical to the commercial viability of this agreement and warrant close monitoring by investors.
The timing of supply commencement in H2 2028 provides Amplitude with a concrete development timeline and gives AGL visibility over when new domestic supply will enter the market. The agreement builds on Amplitude’s existing relationship with AGL, which has been a foundation buyer for the company’s Sole gas project, suggesting established operational and commercial compatibility between the parties.
Investors should monitor the results of the ECSP drilling campaign, which will determine whether this conditional agreement progresses to full execution. Additionally, the regulatory and permitting pathway for the ECSP development remains relevant, as does any movement in oil-linked gas pricing that could impact contract economics. The announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About AGL Energy Limited (ASX: AGL)
AGL Energy Limited is one of Australia’s largest electricity and gas retailers, serving over 4 million retail accounts and operating power generation facilities across coal, gas, wind, hydro, solar, and battery storage. The company operates in Australia through its Customer Markets, Integrated Energy, and Investments segments, providing energy retail and generation services to residential and commercial customers. AGL is headquartered in Sydney and also offers broadband, mobile, voice, solar products, and electric vehicle services.
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