AGL signs agreement to supply gas to GLNG

Australia

BRISBANE, December 30, 2015 – Participants in Australia’s Gladstone LNG (GLNG) project signed an agreement last week with fellow domestic company AGL Energy to supply with 6.83 bcm (241 bcf) of gas.

The gas will be delivered over an 11-year period starting January 2017, and will be priced based on an oil-linked formula. AGL will source the gas from coal bed methane gasfields in Queensland.

GLNG’s first train came on line in October 2015, and the second train is scheduled for completion by the end of the year. Reuters recently reported that independent oil and gas producer Santos would have to spend an additional USD 1.2 billion-1.6 billion to supply the project with enough gas to meet full capacity of 7.2 million tpy.

GLNG is part of a USD 190-billion initiative to develop new LNG capacity in Australia. The project already has offtake agreements in place with Malaysia’s state-owned Petronas and South Korean player Korea Gas Company for 3.5 million tpy over 20 years.

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