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 had signed a new domestic natural gas supply deal.

APLNG said in a statement would supply 1.55 PJ of gas to Queensland Nitrates (QNP), a producer of ammonium nitrate, for its facility in Central Queensland.

This facility provides full-time employment for close to 100 people, all based locally, it said.

CEO Khoa Dao welcomed the new one-year gas deal with the Australian manufacturer in addition to the multi-year, “competitively priced” gas supply agreement executed last year.

“We are one of the largest providers of gas to customers on the east coast, and it was pleasing we could provide further incremental volumes in 2023 to help the market navigate unprecedented challenges,” Dao said.

In fiscal 2022, Australia Pacific LNG provided more than 150 PJs of gas to domestic customers, mostly under medium- and long-term gas supply agreements at prices which were locked in well before this year’s market volatility, the statement said.

In September, Australia 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, all located on Curtis Island.

Earlier this 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 now 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 now holds a 27.5 percent share, while China’s Sinopec owns a 25 percent share in APLNG as well.

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