Australia Pacific LNG has announced a new four-year agreement to supply up to 91 petajoules (PJs) of gas to Origin Energy.
The sale commences in 2022 and will help ensure additional gas is available for the east coast domestic market during the period a potential gas shortfall has been forecast by the Australian Energy Market Operator (AEMO).
This latest agreement comes on top of Australia Pacific LNG’s existing commitments to supply 495 PJs of gas for Australian customers between 2021 and 2025.
Announcing the new deal, Australia Pacific LNG Chief Executive Officer, Nicholas McKenna, said it demonstrated gas companies continue to step up and ensure the needs of domestic customers are met.
“We understand the critical role for gas as an enabler of Australia’s economy and the Federal Government’s plans for it to support our COVID-19 recovery,” Mr McKenna said.
“As a major gas producer, Australia Pacific LNG is pleased to be playing its part in providing more gas supply for the domestic market.”
Australia Pacific LNG Pty Limited is an incorporated joint venture between ConocoPhillips Australia (37.5 per cent), Origin Energy Limited (37.5 per cent) and Sinopec (25 per cent).
On Wednesday, Origin Energy also advised that it had secured additional pipeline capacity under a three-year agreement with APA Group commencing in 2023, which will allow the company to transport significant volumes of gas to customers in southern markets where it is needed most.
Origin executive general manager energy supply and operations, Greg Jarvis, said that these gas supply and transport agreements strengthen Origin’s gas portfolio, adding up to 91 PJs over four years, and provide the flexibility to move gas to where it is needed.
“Affordable gas is vital to Australian industry and manufacturing and we’re proud to bring this additional supply to the market to help meet customer demand,” Mr Jarvis said.