Oil and Gas News

APLNG locks in gas deal with Qld facility

Australia Pacific LNG (APLNG) has secured a new gas supply agreement with Queensland Nitrates (QNP), a chemicals manufacturer servicing the resources sector from its facility in Central Queensland.

The agreement is for 7.75 petajoules and follows seperate, multi-year gas supply agreements that APLNG executed in 2019 with an Incitec Pivot facility an Orica Limited.

Chief executive officer Nick McKenna said APLNG was pleased to support yet another Australian manufacturer with the multi-year guarantee of a significant volume of competitively priced gas. QNP is a joint venture between Wesfarmers Chemicals Energy and Fertilisers and Incitec Pivot, providing full-time employment for close to 100 people, all based onsite.

McKenna said he was delighted to be supplying more gas into the domestic market and supporting Australian manufacturing jobs.

“This is yet another example of Australia Pacific LNG offering customised solutions to fit the unique requirements of domestic buyers,” he said. 

“We have embraced the Queensland Government’s Australian Market Supply condition which ensures the east coast gas market is well supplied for industrial users and we understand the critical role gas plays in the Australian economy’s recovery from COVID-19.”

McKenna added that APLNG is playing its part, with the company currently negotiating further new supply agreements which will provide even more gas for the Australian domestic market. Since 2015, APLNG has supplied 30 per cent of the total east coast annual domestic demand for gas.