AGL to Supply Gas to GLNG Project in Queensland

AGL Energy Limited Thursday announced it has executed an agreement to supply gas to GLNG project.

The company will supply 254 petajoules (PJ) of gas to the GLNG project. The gas will be supplied at Wallumbilla over a period of eleven years commencing in January 2017 with pricing based on an oil-linked formula.

“This transaction is consistent with AGL’s objective of selling gas from existing favourable Queensland wholesale contracts into the high value Queensland market. The annual quantities are profiled to sell up to 34 PJ/year in the period 2018 to 2020 and AGL has retained flexibility in its portfolio for future sales to its consumer market. This sale is the third sale of gas from AGL’s wholesale gas portfolio into the LNG projects in Queensland, and the first long term sale to the GLNG project,” AGL said.

GLNG is a planned LNG plant in Queensland, Australia. It is a leading project in the conversion of coal seam gas (coalbed methane) into LNG. The project is led by Santos, in partnership with three of the world’s leading energy companies – PETRONAS, Total and KOGAS. GLNG includes the development of coal seam gas resources in the Bowen and Surat basins in Queensland, a 420km gas transmission pipeline to Gladstone, and two LNG trains with a combined nameplate capacity of 7.8 million tons per annum on Curtis Island.

Earlier this month, Senex Energy and GLNG completed the transaction for the development of the Western Surat Gas Project in Queensland announced on 24 September 2015.