Shell to supply 8 petajoules of gas to Australian market in 2023
Shell on January 23 said its QGC business in Queensland is offering an expression of interest (EOI) for 8 petajoules (PJ) of gas for delivery in 2023. Shell had last month suspended talks with Australian customers for new supply contracts after the federal government announced its decision to cap prices at A$12/GJ.
The volume offered by Shell is in addition to the 20PJ of gas offered domestically since December 2022, at or below $12/GJ, of which over 13PJ has been contracted, the company said.
“The volumes have been offered either through hubs, bilaterally or via swaps that facilitate additional supply into the peak winter periods,” Shell said.
“Typically, for the majority of the market, retailers and customers contract gas well in advance of the required supply period. However, in light of the significant ongoing regulatory changes impacting the gas market, QGC believes it is important to offer additional gas for delivery in 2023 under an EOI at this time,” the company added.
Based on current production forecasts, QGC anticipates additional supply will be available to offer to the market as the year progresses.
Although, Shell has offered to resume gas supplies to the domestic, the company remained critical of the government’s intervention in the gas market.
“It is essential governments and regulators create a policy environment which encourages new supplies especially in close proximity to southern demand points. Squeezing gas from the north to the south is neither a sustainable nor an affordable way to supply customers in southern markets,” Shell said.
“We will continue to engage constructively with government on the Australian Domestic Gas Security Mechanism and Code of Conduct consultation. We need to shift from the current patchwork of competing and inconsistent regulatory interventions with their unintended consequences, to solutions which will deliver long term energy security and prosperity for Australians,” the company added.