The APLNG-Armour Energy Joint Venture has signed gas deals with two manufacturers – Orica for supply to their Yarwun explosives plant and packaging company Orora.
Minister for Natural Resources, Mines and Energy, Dr Anthony Lynham, said the Queensland Government set aside land for potential gas producers to supply manufacturers and this initiative is paying off for manufacturing workers.
“Queensland continues to do the heavy lifting when it comes to gas supply for eastern Australia, and energy policy for the nation.”
Manufacturing Minister, Cameron Dick, also welcomed the latest supply contracts, saying that the gas policy isn’t just securing local supply, it is strengthening job security in the manufacturing sector.
The latest two gas deals follow the recent three-year gas deal APLNG-Armour Joint Venture penned with industrial manufacturer Incitec Pivot, securing 400 jobs at its chemical plant in Brisbane.
Orora’s packaging factory at Rocklea, its primary Queensland manufacturing facility, employs more than 360 Australian manufacturing jobs. Orica has more than 200 permanent employees and contractors at Yarwun.
APLNG CEO, Warwick King, said he looked forward to delivering more gas to the market.
“APLNG is proud to be supporting manufacturing jobs in Australia through the supply of gas to Australian manufacturers, with the earliest of a number of multi-year contracts beginning in 2020,” Mr King said.
“We will be able to develop this block efficiently given its proximity to existing infrastructure.”
In early July, the APLNG-Armour Joint Venture gained its authority to prospect over the 18km2 area south-west of Chinchilla that will provide the gas in the new supply agreement. It is near existing gas infrastructure, which will help fast-track gas to Australian manufacturers.
Since 2015, the Queensland Government has released more than 39,000km2 of land for gas exploration, guaranteeing over a fifth of the gas will be for Australian buyers.
Last year, Queensland supplied around 25 per cent of the gas that flowed to the east coast domestic market.