Australia Pacific LNG pens new domestic gas deal

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

According to a statement by APLNG, the producer has signed a contract to extend the supply of gas to mining and infrastructure solutions provider Orica to 2025.

Orica produces explosives, blasting systems, and mining chemicals used to mobilize the earth’s resources.

Under the contract, APLNG will supply an additional 2.92PJ of gas in 2025.

APLNG’s CEO Khoa Dao said the agreement was a “further demonstration of Australia Pacific LNG’s commitment to supplying the east coast gas market.”

Orica’s current contract was struck as a result of tenures granted to APLNG that included domestic supply conditions specifically focused on supporting manufacturing.

At the end of 2023, APLNG contributed over 142 PJ of supply to the domestic market and expects to supply a further 151 PJ in 2024.

In 2022, 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.

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