Energy giant Santos says it plans to divert gas earmarked for export to the domestic market, to ease an expected squeeze on supply as Australia becomes the world’s biggest LNG exporter over the next two years.
The company’s GLNG joint venture partners — Petronas, Total and Kogas — will supply 30 petajoules (PJ) of gas, or enough to power 330,000 homes for two years, to the east coast domestic market in 2018 and 2019.
The gas, produced at the LNG plant on Curtis Island near Gladstone in Queensland, is being sold to east coast customers including power companies.
Authorities have warned of blackouts as coal-fired power stations start closing without adequate replacement electricity generators.
“Over the last few months, Santos has been working constructively with the federal government and our GLNG partners to supply additional gas to the east coast domestic market,” says CEO Kevin Gallagher.
“It is further proof of our readiness to work with our partners in responding to market dynamics and meeting local gas demand and I would like to thank them for their support.
“As an Australian company we are committed to improving energy reliability and affordability for all Australians, both householders and industry.”