Aussie government secures new gas supply commitments from Esso, Woodside

The Australian government has secured two new gas supply commitments from Esso and Woodside under the Gas Code of Conduct exemptions framework, it announced on January 22. This move is part of the government's efforts to ensure a stable and reliable gas supply to the country's east coast.

The Gas Code of Conduct exemptions framework has resulted in enforceable supply commitments from Esso and Woodside, making approximately 260 petajoules of gas available between the present and 2033. This gas volume is estimated to power east-coast gas-fired power stations for around two and a half years. 

This announcement follows previous commitments made by Senex and APLNG in November 2023. With these new commitments, the total volume of gas secured through the Gas Market Code commitments now stands at 564 petajoules.

“We know that gas is critical to supporting a lower-cost, more renewable grid as aging coal exits, and to support Australian manufacturing – which is why we’ve delivered this code to shore up energy reliability and affordability after a decade of chaos,” federal minister for climate change and energy, Chris Bowen, said. 

The Mandatory Gas Market Code of Conduct came into effect in July 2023 and will be reviewed no later than 2025.