Gippsland Basin JV to Supply Gas to AGL Energy

Gippsland Basin joint venture has agreed to supply gas to AGL Energy Limited, ExxonMobil announced Thursday.

Esso Australia Resources Pty Ltd, a subsidiary of ExxonMobil Australia, and BHP Billiton Petroleum (Bass Strait) Pty Ltd make up the Gippsland Basin joint venture.

As per the deal, 198 petajoules of gas from the Gippsland Basin joint venture would be supplied over a three-year period starting in January 2018.

The Gippsland Basin joint venture continues to demonstrate that it is playing an important role in meeting gas supply requirements of large industrial and wholesale customers on the Australian east coast, said ExxonMobil Australia Director of Gas Marketing, Stu Jeffries.

“With this agreement, we have now sold significant quantities of gas from 2018 onwards,” Jeffries said. “This agreement demonstrates that the east coast gas market is functioning effectively.”

The agreement, which incorporates an oil linked pricing component, has enabled AGL to secure competitively priced gas supply until 2020 for its 1.5 million residential and small business gas customers, the Australian utility said adding that its gas portfolio now has sufficient Queensland sourced supplies to release 30 to 50 PJ per annum for sale into the the high value Queensland market between FY18 and FY20.

Esso Australia Resources Pty Ltd operates the Gippsland Basin joint venture on behalf of a 50-50 joint venture with BHP Billiton Petroleum (Bass Strait) Pty Ltd.