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APLNG and QCLNG reach gas supply deal

Under the agreement, from 2020 the QCLNG project will be able to transport and process gas and water from the Arrow Energy Surat Basin fields using available capacity in existing APLNG-QCLNG joint infrastructure.

This arrangement will run until 2035 with an option to extend until the end of 2049.

Additionally, APLNG has agreed to buy up to 350 PJ of gas from the QCLNG project at an oil-linked price over 10 years from 2024.

APLNG CEO Warwick King said the new agreement showed the industry was working to prevent gas shortages.

“We are very pleased to work collaboratively with QCLNG, paving the way for the development of significant new gas supplies in Queensland,” he said.

“These arrangements demonstrate the industry’s determination to develop more gas for the market, in the most efficient way possible to keep costs down.

“Working together and using existing infrastructure will not only enable lower cost development of new gas supplies, it will also minimise impacts on landholders and local communities by avoiding duplication of infrastructure.”

A joint venture between ConocoPhillips, Origin Energy and Sinopec, APLNG supplied nearly 30 per cent of east coast gas demand in the past year.

QCLNG involves the exploration and development of CSG across an area of approximately 500 km.

The project is operated by QGC, a subsidiary of Shell Australia.

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