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Australia Pacific LNG and QCLNG project to share infrastructure

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LNG Industry,

Origin Energy has announced that an agreement has been reached between Australia Pacific LNG and the QCLNG project on long-term infrastructure sharing arrangements.

Australia Pacific LNG has also agreed to secure additional gas supplies.

Under the tolling arrangement, the QCLNG project will be able to transport and process gas and water from the Arrow Energy Surat Basin fields using available capacity in existing Australia Pacific LNG-QCLNG joint infrastructure. The infrastructure sharing arrangement will begin as of 2020, and will continue until 2035. There is an option to extend this period to the end of 2049.

In addition to this, Australia Pacific LNG has reportedly decided to secure up to 350 PJ of gas from the QCLNG project. The agreement to purchase gas from the QCLNG project at an oil-linked price over 10 years from 2024 will diversify and strengthen Australia Pacific LNG’s gas portfolio.

According to Origin, these arrangements are reportedly subject to Arrow Energy taking certain final investment decisions (FIDs) in connection with the development of its Surat Basin fields.

Warwick King, CEO of Australia Pacific LNG, said: “We are very pleased to work collaboratively with QCLNG, paving the way for the development of significant new gas supplies in Queensland.

“Australia Pacific LNG has taken the opportunity to grow and diversify our gas portfolio, while the tolling agreements with QCLNG allows us to maximise value from our investment in existing infrastructure.

“These arrangements demonstrate the industry’s determination to develop more gas for the market, in the most efficient way possible so we can keep costs down.

“Working together and using existing infrastructure will not only enable lower cost development of new gas supplies, it will also minimise impacts on landholders and local communities by avoiding duplication of infrastructure.”

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