GLNG Commits More Gas to Australian Domestic Market as LNG Export Cut Decision Looms
The Santos-led Gladstone LNG project in Queensland, Australia, has committed an additional 30 petajoules (0.8bn m3) to the domestic market over 2018 and 2019, Santos said September 7.
The move comes following pressure by the federal government for LNG exporters to shore up Australia’s east coast gas supplies, or face export restrictions.
The 30 PJ of gas, which is now being sold to east coast customers including power companies, would have otherwise been exported as LNG, Santos said.
“Over the last few months, Santos has been working constructively with the Federal Government and our GLNG partners to supply additional gas to the east coast domestic market,” Santos managing director and chief executive officer, Kevin Gallagher, said.
“It is further proof of our readiness to work with our partners in responding to market dynamics and meeting local gas demand and I would like to thank them for their support,” he added.
The arrangements follow recent Santos announcements for the delivery of up to 72 PJ (1.92bn m3) of gas over four years into the south-east market through a swap agreement and the sale of 15 PJ (0.4bn m3) to the Pelican Point Power Station in South Australia.
The federal government has until the end of October to decide whether there is sufficient supply of gas to meet the forecast needs of east coast Australia consumers, and whether it will limit exports from LNG projects which are drawing gas from the domestic market.
“30 PJ is a material volume of gas which could power a 228 MW power station or 330,000 homes over the two year period,” Gallagher said.
Nathan Richardson