Australia inks domestic gas deal with Gladstone LNG exporters

Australia has signed a new heads of agreement with the Gladstone LNG exporters to prevent a gas supply shortfall and secure gas for the domestic market.

The projects include the Santos-operated GLNG, the ConocoPhillips-led APLNG, and Shell’s QCLNG project.

Also, all of these LNG export plants all located on the Curtis Island off Gladstone and are the only LNG export facilities on Australia’s east coast.

Resources Minister Madeleine King signed the heads of agreement with the LNG exporters, according to a statement on Thursday.

“The negotiations ensure additional gas supply, improving security and affordability of domestic gas supplies in future years, while also introducing transparency measures to improve the information available to customers,” the statement said.

In July, the Australian Competition and Consumer Commission forecasted a gas shortfall of 56 petajoules (PJ) for the domestic market in 2023.

The new commitments from LNG exporters would lead to an extra 157 PJ for the domestic market in 2023, the statement said.

No impact on Santos or GLNG

In a separate statement, Australian LNG producer Santos welcomed the finalization of the heads of agreement released by the Australian government.

The firm said that the agreement “has no adverse impact” on Santos or the GLNG project.

Moreover, the deal ensures that LNG exporters would first offer uncontracted gas to the domestic market before international customers, according to Santos.

The LNG exporters have agreed to adhere to the principle that domestic gas customers would not pay more for the LNG exporters’ uncontracted gas than international customers, the firm said.

In addition, the agreement “removes sovereign risk by recognizing the importance of honoring LNG contracts and will help to maintain Australia’s reputation as a trusted and reliable LNG exporter to our trade and investment partners.”

Santos CEO Kevin Gallagher said the agreement “is a good outcome for Santos and very welcome to remove sovereign risk and ensure long-term LNG supply contracts are honored.”

- Advertisements -

Most Popular

Trafigura to supply US LNG to Germany under new deal

Commodity trader Trafigura said it would supply liquefied natural gas (LNG) from the US to Germany under a new...

Sempra and Engie seal Port Arthur LNG supply deal

French energy firm Engie has agreed to buy liquefied natural gas for a period of 15 years from Sempra...

Trinidad, Shell, BP move forward with Atlantic LNG restructuring plans

Trinidad and Tobago has signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, including Shell and...

More News Like This

Gladstone LNG exports down in November

LNG exports from the Gladstone port in Australia’s Queensland dropped by about 9.3 percent in November due to lower...

Australia Pacific LNG signs new domestic gas supply deal

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, said it...

Australian LNG export revenue hits new record in October

Australian liquefied natural gas (LNG) export revenue rose 82 percent year-on-year in October to a new record high, according...

Australia’s Origin receives takeover offer from Brookfield and EIG

Australian energy firm and APLNG shareholder, Origin, has received a takeover offer from a consortium consisting of Canada's Brookfield...