LNG exporters agree to supply more domestic gas in a crunch
Queensland’s three LNG export plants have agreed to extend a commitment to supply extra domestic east coast gas into 2020 if there is a shortage.
Federal Resources Minister Matt Canavan said the government had signed a “heads of agreement” (effectively a letter of intent) with the Santos-led GLNG project, Origin Energy’s APLNG and Shell’s QCLNG, who all export from Gladstone.
“LNG exporters have agreed to offer uncontracted gas to the domestic market on reasonable terms in the event of a shortfall,” Senator Canavan said.
“This uncontracted gas will not be offered to the international market unless equivalent volumes of gas have first been offered to the Australian domestic gas market on competitive market terms.”
The deal extends a previous heads of agreement for this year and 2019, struck to try to ensure export restrictions are not activated under the Australian Domestic Gas Security Mechanism.
Senator Canavan said the industry also recommitted to the Peak Electricity Demand Gas Supply Guarantee, which ensures there is sufficient gas available to keep the lights on at times of high gas generation demand.
Thursday, October 04, 2018
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