Gas sales system works - Appea

3rd June 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( - The Australian Petroleum Production and Exploration Association (Appea) has welcomed a gas supply agreement between Queensland gas producer Westside and Alinta Energy and CleanCo Queensland, saying it is further proof that the industry continues to deliver for the Australian economy.

Westside earlier this week announced a gas sales agreement of 5.84 PJ over a three-year period, under which Westside and its joint venture partner, Mitsui E&P Australia, will deliver a total of 3.65 PJ in calendar years 2022 and 2023 to Alinta Energy.

CleanCo Queensland will purchase a total of 2.19 PJ of gas over 2023 and 2024 to fuel Swanbank E, CleanCo’s 385 MW gas-fired power station near Ipswich in south-east Queensland. 

Appea CEO  Andrew McConville said the agreement shows the market is working.

“There have been more than 100 local gas sales agreements since December 2012. This agreement will mean Swanbank E can keep running and continuing to play its key role in ensuring the ongoing reliability and stability of Queensland’s electricity network,” 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.”

He pointed to a recent Ernst & Young report, which found that there is a national economic boost of over A$350-billion and a boost to employment of around 220 000 jobs over the next 20 years if Australia could get the investment settings right.

Appea’s insistence that the current gas sales system is functional comes as the federal government considers a prospective national gas reservation scheme as part of its plan to make energy affordable for families and businesses and support jobs as part of Australia’s recovery from the Covid-19 recession.

A gas reservation issues paper was released last year for public consultation and the government is seeking information and feedback.