Shell’s QGC business in Queensland is set to deliver an additional 40 petajoules into the domestic market for gas power generation between now and 2027 through an enforceable supply commitment.

This adds to commitments made by Esso, Woodside, Senex and APLNG to take the total volume of enforceable gas supply commitments secured through the Federal Government’s Gas Market Code to more than 600 petajoules.

Resources Minister Madeleine King said the Australian Energy Market Operator had confirmed that the legally enforceable supply commitments under that code had pushed back projected shortfalls by two years, to 2028.

“The shift to clean, renewable energy is well underway but in the meantime we need gas to ensure our energy system remains stable, reliable and affordable,” Ms King said. 

“The enforceable supply commitments will ensure Australian gas is available for Australian users at reasonable prices and on reasonable terms and give producers the certainty they need to invest in supply.

“The Gas Code is an important part of the Albanese Government’s commitment to easing cost of living pressures. This commitment is in line with the Albanese Government’s Future Gas Strategy.”

The new enforceable supply commitment was made with Walloons, a Shell QGC business arm responsible for the marketing and trading of natural gas in the Australian gas market on behalf of the Queensland Curtis LNG (QCLNG) joint venture. 

Shell last month announced its QGC business had commenced work on a new set of onshore natural gas wells to supply domestic and export customers.

About 138 newly planned gas wells will be drilled and connected in the Western Downs region in a project expected to support up to 300 jobs.