Gladstone LNG projects sign new deal with PM
GLADSTONE'S three liquefied natural gas exporters renewed a deal with the Prime Minister to help support the domestic gas supply.
The new Heads of Agreement was signed by the three companies - APLNG, QCLNG and GLNG - and Scott Morrison to confirm the projects' commitment to meet any shortfall of supply in the east coast's market.
Under the agreement, each site's un-contracted gas would need to be offered to the domestic market in the event of a shortfall.
The industry also recommitted to the Peak Electricity Demand Gas Supply Guarantee to ensure gas was available during high demand times.
Minister for Resources and Northern Australia Matt Canavan said concerns for a supply shortfall within the next two years had been laid to rest.
"Firm action by this government since (early 2017), including the establishment of a gas export control framework and the Heads of Agreement with LNG exporters, has helped bring domestic spot gas prices down by 25 per cent and gas offer prices by more than half," he said.
Australian Petroleum Production and Exploration Association chief executive Dr Malcolm Roberts said the results from the last agreement were "unambiguously good".
"The market is well supplied ... large commercial and industrial customers are receiving multiple offers from suppliers," Dr Roberts said.
He pointed to an Australian Competition and Consumer Commission report that said LNG projects were likely to sell 305 petajoules of natural gas to domestic customers in 2019.