Oil and Gas News

AGL boosts gas supply through Esso deal

AGL Energy has entered into a gas supply agreement with Esso Australia Resources for the purchase of 50 petajoules of gas.

The agreement is set to commence on January 1, 2021 and conclude on December 31, 2022 and supports AGL’s continued supply of its gas customers.

The company said it remains committed to securing cost-competitive gas supply for its customers from the domestic market and new gas supply from international markets through its proposed Gas Import Jetty.

AGL’s Gas Import Jetty involves developing a project that sources gas at competitive prices from international suppliers to AGL’s customers in south-eastern Australia.

It includes gas being transported on liquified natural gas ships from overseas, transferred to another ship and converted from liquid form back into gas on the ship and then piped into the Victorian Gas Network.

The ship, known as a Floating Storage and Regassification Unit (FSRU) that stores the liquid gas would be moored at the existing jetty at Crib Point on the Mornington Peninsula in Victoria.

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