APLNG pens new domestic gas deals with Shell, Origin

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, has signed new gas supply deals with its shareholder Origin and a unit of LNG giant Shell.

The company said in a statement it will supply a total of 11.2PJ to energy retailers Origin and Shell Energy under these two deals.

With these new agreements, APLNG’s contribution to the domestic market for the
2024 calendar year is over 150 PJs, it said.

Also, this completes APLNG’s expression of interest (EOI) process offering an additional 70 PJ of gas to the East Coast domestic market for supply between April 1 to December 31, 2024.

The EOI process was undertaken in compliance with APLNG’s commitments under the Federal Government’s heads of agreement and gas market code of conduct.

Chief executive officer Khoa Dao said the EOI process demonstrated APLNG’s
commitment to ensure the domestic market is “well supplied”.

“Importantly, Australia Pacific LNG is supplying additional gas volumes to the domestic market during the winter period when there is typically greater demand,” Dao said.

APLNG

The LNG project logged lower revenue during the quarter ending December 30 compared to the same quarter last year, according to shareholder Origin Energy.

Origin, whose shareholders in December rejected a takeover offer from a consortium consisting of Canada’s Brookfield Asset Management and a unit of US-based energy investor EIG, said in its quarterly report in January that APLNG revenue reached about A$2.38 billion ($1.56 billion) in the October-December period.

Compared to the December quarter of 2022, APLNG revenue decreased 25 percent, while it rose 1 percent compared to the prior quarter.

Origin owns a 22.5 percent in the project and is the upstream operator, while China’s Sinopec owns a 25 percent share in APLNG.

Moreover, US energy giant ConocoPhillips has a 47.5 percent share in the APLNG project and operates the 9 mtpa LNG export facility on Curtis Island near Gladstone.

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