Beach's Origin deal could be worth $1.2b Beach Petroleum's new gas supply deal with Origin Energy could be worth more than $1.2 billion if market expectations of the price paid are correct. Under the deal, announced on Wednesday, Beach will supply Origin with 139 petajoules of gas for eight years, starting in 2015. The two companies did not disclose the amount that was paid, but Beach have been delaying finalisation of this contract for more than a year in a bid to take advantage of rising prices for gas on the east coast of Australia. Domestic gas prices have been rising as a side-effect of the export gas industry that is booming in Queensland, and while prices are currently around $4 per gigajoule, big players like Santos have admitted signing up to supply contracts beyond 2015 at close to $9 per gigajoule. Royal Bank of Canada analyst Andrew Williams said the market had expected Santos to emerge as the other half of this long-awaited deal, and the revelation that Origin was the buyer suggested that "pricing could be as high as $9 per gigajoule." At those prices, the 139 petajoules would be worth more than $1.25 billion, and the deal contained a clause for Origin to extend the deal by an extra two years and an extra 34 petajoules. "We see this as bullish for Beach and perhaps the catalyst to push the stock through $1.50 in the coming days," Mr Williams said. Shares in Beach closed 5.5¢ higher at $1.475. The gas will be sourced by conventional methods from South Australia's Cooper Basin, and for context, 139 petajoules is roughly enough to power about 2 million average households for one year. Beach managing director Reg Nelson confirmed that the deal with Origin did not commit all of his company's gas supplies, meaning further deals could yet come from this acreage. "We do have uncontracted reserves of gas and that fits into our strategy and view of the markets," he said. Origin shares closed 7¢ higher at $12.76.