LNG trio sign up to assure domestic gas supply

The Federal Government has signed a new Heads of Agreement with Gladstone's LNG exporters to shore up domestic gas supply in the face of a predicted squeeze. Minister for Resources and Northern Australia Madeleine King said this was just one of a suite of measures being taken by the Albanese Government to deliver enduring improvements to the market and strengthen domestic gas users’ access to affordable gas. The new commitments from LNG exporters will lead to an extra 157 PJ for the domestic market in 2023, with the gas to be supplied in line with seasonal demand. In July, the Australian Competition and Consumer Commission forecast a gas shortfall of 56 petajoules (PJ) for the domestic market in 2023. The Australian Petroleum Production & Exploration Association (APPEA) said the new HoA between the three east coast LNG projects and the Commonwealth demonstrated the industry’s commitment to Australian homes and businesses. It means that the LNG exporters will first offer uncontracted gas on competitive market terms to the domestic market before it is offered to the international market. The HoA was signed by Ms King and representatives from Australia Pacific LNG, QGC (operator of QCLNG), and Gladstone LNG (GLNG). Minister for Resources and Northern Australia Madeleine King. Ms King will meet every quarter with each exporter to review whether they are meeting their individual commitments and ensure they are compliant with the Code. “Given the agreement means the projected shortfall will be avoided, I am satisfied I do not need to take steps to activate the Australian Domestic Gas Security Mechanism at this time," she said. “This is a great outcome for Australia, will strengthen confidence in the domestic gas market and safeguard our global reputation as a stable and reliable energy exporter to our regional partners." But Coalition Resources spokeswoman Senator Susan McDonald questioned the Federal Government’s commitment to a long-term solution to gas supply problems. “It’s clear that in order to avoid shortfalls, price rises and threats of pulling the domestic supply trigger in future, the only solution is bringing online more gas supply," she said. “Minister King has echoed this sentiment but it’s hard to believe she is sincere when she does not have the support of her Cabinet colleagues. “Current Energy Minister, Chris Bowen, last year called the Coalition’s gas-led recovery ‘BS’, and ‘a fraud’, so gas companies and consumers can be forgiven for not breathing easy just yet. “The Federal Government must work harder with State Governments to open up the huge gas reserves in Queensland, NSW, Victoria and the Northern Territory or we’ll continue being trapped in the fiasco of needing short-term fixes for an issue that won’t go away.” APPEA chief executive Samantha McCulloch said the industry had announced more than $20 billion in investment in recent years but moratoriums and regulatory uncertainty were impacting future investment opportunities.

LNG trio sign up to assure domestic gas supply

Industry Queensland

Related News

Construction milestone for Mount Morgan water pipeline

Glencore hits back at Miles’ carbon capture comments

Renegade making headway at Mongoose West

Get access to breaking mining news, now.