Origin signs domestic gas deal with APLNG

Origin Energy has signed a four-year natural gas deal with Australia Pacific LNG that could help fill a supply gap in Australia’s southern states.

Under the deal with APLNG, Origin has secured up to an additional 91 PJ of gas from January 2022 at a JKM-linked price, the Australian firm said in a statement.

APLNG will boost volumes for Origin during Australia’s winter months, the statement said.

This latest agreement comes on top of APLNG’s existing commitments to supply 495 PJs of gas for Australian customers between 2021 and 2025.

APLNG is a joint venture between US energy giant ConocoPhillips that holds a 37.5 percent share in the venture, while Origin also has a 37.5 percent, and China’s Sinopec holds the rest.

Origin operates APLNG’s gas fields, upstream production and pipeline system, while ConocoPhillips operates the 4.5 mtpa LNG export facility on Curtis Island and the export sales business.

Pipeline deal with APA

In addition to the gas supply deal, Origin has also bagged additional pipeline capacity under a three-year agreement with APA Group starting in 2023, which will allow the company to transport “significant volumes of gas to customers in southern markets where it is needed most,” it said.

Origin executive general manager energy supply and operations, Greg Jarvis said, “Origin has taken a major step towards securing gas supply for domestic customers, particularly in southern states, through a period in which AEMO has identified a potential shortfall for the market.”

“Affordable gas is vital to Australian industry and manufacturing and we’re proud to bring this additional supply to the market to help meet customer demand,” Jarvis said.

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