GAS

Levis give Amity the blues

Amity Oil has told the market that a number of circumstances beyond its control have conspired to...

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Last month, the Perth-based company signed a 1.3 million cubic feet per day (mmscfd) gas supply contract with Levi Strauss, however the American clothes manufacturer has so far taken less than 100,000 cubic feet per day and has told Amity that this level may not increase for "some time".

Amity also said, for more than a month, it had expected a third customer - an independent electric power generator - to begin taking gas but delays in the approval of the entry manifold have so far prevented gas delivery.

A fourth contracted gas customer, who was also expected to begin taking gas in early June, has been unable to complete its connecting pipeline due to a land access dispute with a third party.

This has left just one other customer for Amity. Gas delivery rates have ranged from 5 mmscfd to zero due to the customer's contract with a pre-existing supplier.

"Until the start-up delays can be overcome and the Joint Venture can deliver on a continuous basis, gas sales are not likely to increase substantially. The company's personnel are doing everything they can resolve these frustrating difficulties," Amity said.

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