Origin signs deal to supply more gas to QCLNG project

ORIGIN Energy will sell additional gas to Gladstone's QCLNG project in a deal that has added to growing doubts about the productivity of Queenland's coal seam gas wells.

The deal, announced on Thursday, will involve Origin supplying up to 30 petajoules of gas a year to BG Group's QCLNG project in 2014 and 2015 at a price linked to the oil price.

Origin, which holds the largest coal seam gas resource position in Queensland, had earlier signed a deal to supply 365 petajoules over 10 years to the Santos-led GLNG project.

Origin chief executive officer energy markets Frank Calabria said the supply agreement provided Origin with an opportunity to "leverage its diverse gas portfolio and extensive transport flexibility to create further value in the gas market".

Deutsche Bank analyst John Hirjee told The Australian the latest deal appeared to reinforce the challenges faced by the Queensland LNG players in securing enough coal-seam gas production to meet their early needs.

"With QCLNG targeting first LNG in 2014, it is difficult to draw any conclusion other than the project is struggling with well productivity," he said.

Topics:  csg curtis island gas lng origin energy qclng resources

Tenants flock to Gladstone as vacancy rates drop

NEW FIGURES reveal tenants should lock in a long-term lease now.

He gave his teen lover 'a joint' before bed

MARIJUANA: Dad denies smoking marijuana in front of his kids.

Gladstone man warned over smoking a joint with his teen lover.

He 'can't remember' Barney Pt crash after rum, beer binge

Christopher Holden leaves Gladstone Courthouse.

Binge drink driver hits parked van and then a pole in Barney Point.

Local Partners

Steve Irwin's final days through dad's eyes

Bob Irwin with his son Steve.

'You never expect that’s the last time you’re going to see your son'

Kristie doesn't mind being the third wheel in Survivor final

Kristie Bennett in a scene from Australian Survivor.

SOLO player will take on Survivor's power couple Lee and El tonight.

Scary hoping Posh and Sporty will re-join The Spice Girls

Mel B

Mel B hoping Victoria Beckham, Mel C will re-join The Spice Girls

REVIEW: Michael McIntyre has Brisbane in stitches

Michael McIntyre in a scene from his TV series Michael McIntyre's Comedy Roadshow.

BRITISH comedian is in the country on his Happy and Glorious Tour.

Cliff Richard doesn't need Rod Stewart's help with legal bills

Sir Cliff Richard

"'Don't worry, I'm loaded. I won't keep you to it.' "

Woolies announces closure of Ipswich store

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Coles to pay new owner of Tannum servo $320K

UP FOR GRABS: Expressions of interest in Tannum's new service station, which will house the new Coles Express, closed this month.

INVESTORS bid for new Tannum service station under construction.

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?