Aussie government secures gas supply commitments from APLNG, Senex
The Australian government on November 27 announced the successful negotiation of two new gas supply commitments from APLNG and Senex. These commitments will provide a total of up to 300 petajoules (PJ) of gas to the east coast domestic gas market by 2030, with 140 PJ to be delivered by the end of 2027.
The commitments are considered crucial for ensuring Australia’s energy security and preventing potential shortages in the years to come. The energy market operator and the Australian Competition and Consumer Commission (ACCC) have both warned of a potential gas shortfall in 2027 if additional supply is not secured.
APLNG and Senex have been granted ministerial exemptions from the pricing provisions of the Gas Market Code of Conduct, giving the companies regulatory certainty over their investment and development plans – and the additional supply helping to keep a lid on prices.
Bowen urged the Greens and Liberals not to obstruct the agreement. “If the Greens and Liberals team up and disallow the code and scrap these commitments, it will threaten energy security for millions of households and thousands of manufacturing jobs across the country,” he warned.
Madeleine King, Australia’s minister for resources, praised the collaboration between industry and government in securing these supply commitments. “The role of gas is changing in the Australian economy, and as it changes, gas will continue to play an important role in the reliability and stability of the energy system,” she said.
King highlighted the significance of gas as a firming fuel and an essential input for manufacturing and minerals processing, emphasising its continued importance during the energy transition.
The ACCC will be responsible for publishing information on the specific commitments, which are legally enforceable. Companies will be required to regularly report compliance to the ACCC, and non-compliance with exemption conditions will result in the highest penalties available under the Code.
The Mandatory Gas Market Code of Conduct came into effect in July this year and will be reviewed no later than 2025.