Australian GLNG Signs Another Domestic Supply Deal
Gladstone LNG on the east coast of Australia has redirected an additional 15 petajoules (400mn m3) of gas to the domestic market through a deal with Origin Energy, project leader Santos said December 20.
The agreement is for the seven months from April to October 2018 and is about 2% of expected domestic demand for next year, said Santos, which holds a 30% interest in GLNG.
“Santos and our GLNG partners are delivering on our public commitment earlier this year to meet domestic gas demand while also honouring our long-term LNG contract obligations,” Santos managing director and CEO Kevin Gallagher said.
Santos, as well as the operators of Queensland’s other two LNG projects, Australia Pacific LNG and Queensland Curtis LNG, made the commitments following concerns that the country’s east coast market could face gas supply shortfalls over the next couple of years. The Commonwealth of Australia government threatened to put restrictions on LNG export volumes if the domestic needs weren’t met.
The deal with Origin, combined with existing agreements announced earlier in the year, brings GLNG’s domestic contributions for the next two years to more than 60 PJ, said GLNG operator Santos.
France’s Total, Malaysia’s Petronas and South Korea’s Kogas also hold interests in GLNG.