Santos sacrifices GLNG exports as export power d-day looms
SANTOS GLNG has announced its greatest deed yet for the domestic gas market as it braces for d-day of the Government's new LNG export powers.
The gas giant announced on Thursday it will sacrifice 30 petajoules of its export gas to sell to east coast customers, including power companies, from 2018 - 19.
Chief executive and managing director Kevin Gallagher said that amount is enough to power a 228 MW power station or 330,000 homes for two years.
The $18.5 billion site - the only of the three on Curtis Island to use third party gas to fill export contracts - is most at risk from the Federal Government's new Australian Domestic Gas Supply Mechanism.
The mechanism gives the government unprecedented power to cap or ban exports from the three Curtis Island sites, if a domestic gas shortage is forecast.
"As an Australian company we are committed to improving energy reliability and affordability for all Australians, both householders and industry," Mr Gallagher said.
"It is further proof of our readiness to work with our partners in responding to market dynamics and meeting local gas demand and I would like to thank them for their support.
"We have been producing and marketing domestic gas for many years, and we have the capacity to leverage our various assets and partnerships to ensure this energy security."
Pressure has mounted on Santos's GLNG asset which, amid rising gas prices and fears of a shortage within two years, uses third-party gas to fill international export contracts.
Previously the company has said GLNG only had enough gas to fill its export contracts and would struggle to supply the domestic market.
Santos' announcement comes ahead of resources minister Barnaby Joyce's decision by October 1 on if new export controls will be imposed on the market.