PERTH (miningweekly.com) – Energy provider Origin Energy has struck an additional gas supply and transport agreement that would increase gas supply to customers in southern markets.
Under a four-year supply agreement with Australia Pacific Liquefied Natural Gas (LNG), Origin has secured up to an additional 91 PJ of gas from January 2022, with volumes to be shaped to higher demand winter months.
Origin has also secured additional pipeline capacity under a three-year agreement with APA Group commencing in 2023, which will allow the company to transport significant volumes of gas to customers in southern markets where it is needed most.
Origin executive GM energy supply and operations Greg Jarvis said the company had taken a major step towards securing gas supply for domestic customers, particularly in southern states, through a period in which Australian Energy Market Operator has identified a potential shortfall for the market.
“These gas supply and transport agreements strengthen Origin’s gas portfolio, adding up to 91 PJ over four years, and provide the flexibility to move gas to where it is needed.
“Affordable gas is vital to Australian industry and manufacturing and we’re proud to bring this additional supply to the market to help meet customer demand,” Jarvis said.
The Australian Petroleum Production and Exploration Association has welcomed the agreement, with CEO Andrew McConville saying it would materially increase gas supply to customers in the southern markets, and was further proof that the oil and gas industry continued to deliver to the Australian economy.
“Not only have domestic gas prices consistently fallen since 2016, our industry is continuing to do the heavy lifting to provide more supply to domestic users despite some states not allowing onshore developments,” McConville said.
“The oil and gas industry underpins around 80 000 direct and indirect jobs – and hundreds of thousands of Australian jobs rely on the reliable, affordable and sustainable supply of oil and gas.
“Australia’s oil and gas industry is helping ensure we keep the lights on at home, and our hospitals and other public facilities operating, by continuing to deliver energy to the domestic market.
“[This] announcement is another reminder that intervention by government isn’t needed to get more supply into the market.”