Oz Armour Sells Gas in Queensland Spot Market
Australian oil and gas producer Armour Energy has started selling small amounts of gas from its Kincora gas production project into the Queensland spot market, it said January 21. It has 1 terajoule/day left over for short term trade after meeting its commitment to sell 10 tJ/day (9mn ft3/d) to Asia Pacific LNG (APLNG).
East coast gas prices are high as much of the output is exported, leaving little for domestic supplies. Prices are converging with Asian LNG netback prices.
“This is a significant achievement for Armour for two reasons: the company’s production rates are now fully satisfying the agreement with APLNG, and the company has commenced selling into the broader Queensland gas market. With this milestone Armour continues to demonstrate its commitment to increase production and gas supplies into the Eastern Australian Domestic Gas Market,” Armour CEO Roger Cressey said.
Meanwhile, Armour said it is in the third phase of its growth strategy, which involves drilling wells and investigating the progress of work on its existing wells. This, together with any necessary further work on the Kincora gas plant, is aimed at producing 20 terajoules/day, Armour said.
Armour Energy bought petroleum resources, leases and production and transportation infrastructure assets on the Roma Self in the Bowen-Surat basin, Queensland from Origin Energy in September 2016. The Roma Shelf assets include the Kincora gas and LPG plant and related infrastructure.