APLNG supplies domestic market

The APLNG facility on Curtis Island, Queensland.

The APLNG facility on Curtis Island, Queensland.

Australia Pacific LNG (APLNG) will supply a further 41 PJ of gas to the domestic market after reaching a gas sales agreement with Origin Energy.

The 14-month contract starts on Wednesday 1 November and comprises 4 PJ in 2017, and 37 PJ in 2018.

This new contract increases APLNG’s total domestic contracted supply commitment for 2018 to over 186 PJ.

This represents almost 30 per cent of Australian east coast domestic gas market demand, up from 20 per cent in 2017.

APLNG CEO Warwick King said this additional gas forms part of the LNG industry’s commitment to make more gas available to the domestic market to help address the forecast shortfall of gas in 2018.

“We have been absolutely clear from day one that Australia Pacific LNG is committed to the Australian domestic market and we continue to do the heavy lifting in meeting domestic demand for gas,” said Mr King.

“We are very pleased to have been able to supply this significant additional volume of gas to the Australian domestic market, and we are actively working on more domestic gas sales.”

APLNG’s domestic portfolio now comprises long term contracts for 1,400 PJ committed to Australian natural gas customers.

These contracts go well beyond 2025, and in some cases as far out as 2040.

APLNG is a joint venture between Origin Energy, ConocoPhillips and Sinopec, and is a two-train CSG-to-LNG project utilising Origin’s Queensland CSG reserves and resources.

Origin is the upstream CSG operator and is responsible for construction and operation of the project’s gas fields and main gas transmission pipeline. ConocoPhillips will be the downstream LNG operator and is responsible for the construction and operation of the project’s LNG facility.

The project successfully exported its first cargo of LNG in January 2016.

The project includes a 530 km, 900–1,050 mm API 5L externally coated gas transmission pipeline from the Surat and Bowen basins to the LNG processing site located at Laird Point on Curtis Island, Gladstone.

Origin and ConocoPhillips each hold a 37.5 per cent interest in the project, with Sinopec holding the remaining 25 per cent.

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