APLNG funnels more gas to Australian manufacturing
The group will supply explosives manufacturer Orica with 10.2 petajoules of gas over four years from 2021 and packaging manufacturer Orora with up to 6 petajoules of gas over three years (at their option commencing from 2023).
“We’re delighted to be getting more gas to domestic customers and as a result, supporting manufacturing jobs in Australia,” chief executive officer Warwick King said.
Australia Pacific LNG is an incorporated joint venture between ConocoPhillips Australia (37.5 per cent), Origin Energy Limited (37.5 per cent) and Sinopec (25 per cent).
In 2018, Australia Pacific LNG provided around 30 per cent of gas supply to the east coast market and has been a net contributor to the domestic market every year since it was formed in 2008.
The Queensland Resources Council hailed the announcement as demonstrating the benefits of a successful gas industry that has regulatory stability.
“The Queensland gas industry is leading the nation with a proactive approach to easing the east coast gas squeeze,” QRC Chief Executive Ian Macfarlane said.
“Queensland’s neighbours must take a leaf out of our book, instead of relying on our State to meet the gap caused by their failure to develop their own gas industries. Gas exploration has stalled in New South Wales and Victoria, despite the fact all jurisdictions have their own reserves in the ground.”