Australia Pacific LNG (APLNG) has reached a sales agreement with Origin to supply an additional 41 petajoules (PJ) of natural gas to the Australian domestic market.
Under a 14-month contract, APLNG will start the supply from next month comprising 4PJ this year, while the remaining 37PJ is slated for next year.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
With the latest contract, the company has increased its total domestic supply commitment for next year to more than 186PJ, which represents nearly 30% of the country’s east coast gas market demand, up from 20% last year.
APLNG CEO Warwick King said: “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.
“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.”
The decision by the company is aimed at addressing the shortfall of gas next year as projected by Australian Energy Market Operator (AEMO).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe development comes in the wake of an agreement reached by the Australian government with gas producing companies Santos, Origin and Shell last month to secure domestic supply commitments and address scarcity concerns.
Established in 2008, APLNG has gas production facilities in southern Queensland.
The company’s portfolio includes contracts for 1,400PJ with domestic natural gas customers.
