Business

LNG companies connect pipelines to share gas supply

The three LNG companies building plants on Curtis Island will share a gas supply when necessary.
The three LNG companies building plants on Curtis Island will share a gas supply when necessary. Brenda Strong

GLADSTONE'S three LNG projects are building gas pipelines to connect their Curtis Island plants together, with a view to entering into gas-sharing agreements in the future.

QGC, APLNG and GLNG are building underground pipelines near Mt Larcom with the intent to swap, buy or sell gas between the projects.

The arrangement would allow QGC to share gas with APLNG and GLNG, but a connection could not yet be made between GLNG and APLNG because of the proximity of the pipelines.

Santos GLNG vice president Rod Duke said the three parties would share gas to ensure contracts were met.

"We do this in case the plant is in shutdown and we need to facilitate," Mr Duke told reporters on a site tour to Curtis Island on Friday.

"It shows how we can work with each other from time to time."

Mr Duke said the gas companies also had moved on from the intense competitive phase in the market.

The agreement comes in light of suggestions made by Australian Petroleum Production and Exploration Association chairman David Knox at a conference in Brisbane last week.

Mr Knox, who is also chief executive of Santos, told oil and gas industry members that companies should collaborate in light of industry conditions.

APLNG project chief executive Page Maxson declined to comment on whether the company would consider working with Arrow to expand its current project.

Topics:  aplng curtis island gladstone glng qgc resources santos



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