Australia Pacific LNG inks new domestic gas deals

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, has signed two deals to supply additional gas to the domestic market.

According to a statement by APLNG, the producer has agreed to supply 0.9 PJ of gas to Energy Australia and 1.2 PJ to Alinta Energy.

APLNG’s CEO Khoa Dao said the sales contracts were consistent with the company’s commitment to supply the domestic market under the heads of agreement with the government and at terms that reflect the recently legislated price cap.

He said that the company would continue to work with customers to help them secure the gas supply they need for their businesses.

“In addition to these latest gas sales, APLNG provides approximately 130 PJ of gas into the domestic market during 2023 under medium and long-term gas supply agreements that clearly demonstrate our long-standing commitment to the domestic market,” Dao said.

APLNG is a net contributor to the domestic market, having provided over 1,400 PJ of gas to east coast customers since LNG operations started in 2016, according to the statement.

Last year, US energy giant ConocoPhillips completed the purchase of an additional 10 percent shareholding interest in APLNG from Origin Energy for about $1.64 billion.

ConocoPhillips has a 47.5 percent share in the project but it also operates the LNG export facility on Curtis Island and the export sales business.

Origin Energy operates APLNG’s gas fields and holds a 27.5 percent share, while China’s Sinopec owns a 25 percent share in APLNG as well.

Canada’s Brookfield Asset Management and a unit of US-based energy investor EIG recently sent a revised takeover offer to Origin.

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