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    Oz AGL to Buy Gas from Esso

Summary

The agreement comes just months after AGL announced it has pushed back the start date of its Crib Point LNG import terminal.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Investments, News By Country, Australia

Oz AGL to Buy Gas from Esso

Australian energy retailer AGL Energy has entered into an agreement with Esso Australia Resources, an affiliate of ExxonMobil, for the purchase of a total of 50 petajoules (1.34bn m3) of gas over two years, it said September 25.

The agreement will commence on January 1, 2021 and conclude on December 31, 2022, AGL said without commenting on the price of the gas. “AGL remains committed to securing cost-competitive gas supply for its customers from the domestic market, where it is available, and new gas supply from international markets through its proposed AGL gas import jetty,” the company said.

The agreement comes just months after AGL announced it has pushed back the start date of its Crib Point LNG import terminal near Melbourne. In June this year, AGL said it expects first gas to be delivered from the proposed facility at Crib Point in Victoria in the second half of fiscal 2022. AGL had previously indicated first gas could potentially be delivered during fiscal 2021.