A new domestic gas supply agreement has been announced, with Cooper Energy set to provide gas from Sole, in Victoria’s Gippsland Basin, to packaging company Visy for three years from 2020.
APPEA Chief Executive, Andrew McConville, said the latest supply deal showed further evidence of the strong investment industry is making to increase gas flow into the east coast market.
“The industry takes its obligations to the domestic market seriously. This deal highlights the importance of developing new gas resources and the response industry is taking to accelerate delivery of more supply,” Mr McConville said.
“This new agreement brings the total to 79 new publicly announced gas agreements signed since 2012 in Australia, showing the strong commitment the sector has for the domestic market. Together, these contracts total more than 4500PJ of gas.”
The industry has announced billions of dollars in new investment to bring more gas to market, supporting domestic gas consumption and export projects that are underpinning Australia’s economic growth.
In the past two and a half years, there have been announcements from Arrow Energy, Shell Australia, Cooper Energy, Senex, Strike Energy, GLNG, Australia Pacific LNG, Origin Energy and Santos to provide new supply in various parts of eastern Australia.
Gas supply agreements were also announced by the Australia Pacific LNG venture with manufacturers Orica and Orora.
“More gas supply into the domestic market helps make a significant difference to the millions of homes and thousands of businesses that use gas,” Mr McConville said.
“The best way to place downward pressure on gas prices and to improve energy security is having more gas supply and more gas suppliers.”