AGL to supply gas to Gladstone LNG
Utility AGL Energy has signed an agreement to supply gas to the Gladstone liquefied natural gas (GLNG) project in Queensland.
AGL will supply 254 petajoules (PJ) of gas over 11 years starting January 2017. The company said with pricing will be based on an oil-linked formula, but did not provide details.
The deal is AGL’s third sale of gas from its wholesale gas portfolio into the export LNG projects in Queensland, and forms part of its strategy to sell gas from existing favourable Queensland wholesale contracts into the high value Queensland market.
AGL said it has sufficient Queensland sourced supplies to sell up to 34 PJ annually in the period between 2018 to 2020, and retains flexibility in the portfolio for future sales to its consumer market.
The GLNG project, which shipped its first LNG cargo in October, sources gas supplies from its own coal seam gas fields, largest stakeholder Santos’ portfolio gas, underground storage and through third parties such as AGL.
It has shipped six LNG cargoes so far.
The project holds off-take contracts with the project partners – Malaysia’s Petronas and South Korea’s KOGAS.