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Biggest-ever NSW energy deal signed

Biggest-ever NSW energy deal signed

Allens Arthur Robinson and Clayton Utz have advised on the largest energy agreement ever to be signed in New South Wales.Allens acted for Tomago - a joint venture between global companies Rio…

Allens Arthur Robinson and Clayton Utz have advised on the largest energy agreement ever to be signed in New South Wales.

Allens acted for Tomago - a joint venture between global companies Rio Tinto, Hydro Aluminium, CSR and AMP - in its historical, long-term contractual agreement with Australia's largest electricity generator, MacquarieGeneration, advised by Clayton Utz.

The agreement means Tomago has effectively secured its power supply requirements until 2028.

The new 11-year, base-load power supply contract replaces the existing power supply agreement with the state owned Hunter-based Macquarie when it expires in 2017.

Allens partner Andrew Mansour, who led the Allens team, said reaching the agreement was a complex and time consuming process.

"A transaction of this size always brings a deal of complexity and extensive negotiation," he said.

"We have been working on major power contracts for some time and this contract faced all of the issues that we would expect of a sizeable load.

"The deal was negotiated in an environment of significant uncertainty in relation to carbon, and the current program of reform in relation to the NSW electricity sector."

Partners Anna Collyer and Grant Anderson, along with senior associates Kate Axup and Sarah Birrell, and lawyer Victoria Ho, also acted on the deal.

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