Shell Energy Australia has struck an agreement with APA Group to transport more gas from Queensland to southern markets for up to six years.
The deal includes firm transport via the South-West Queensland, Moomba to Sydney and Roma Brisbane pipelines, in addition to providing pipeline capacity to supply gas to Shell Energy’s 282 MW Oakey Power Station in Queensland’s Darling Downs to support firming generation requirements in support of the energy transition.
Shell Energy Australia Vice President of Trading, David Guiver, said the agreement with APA Group will help supply customers in NSW and VIC, providing additional flexibility and capacity to those markets. It follows a long-term, multi-year gas supply agreement with CSR for its operations in Sydney and Adelaide.
“We anticipate the amount of gas that the Surat and Bowen basins supplies to the rest of Australia will increase over the coming years and this agreement provides more capacity and flexibility to move the gas where customers need it,” said Guiver.
“This agreement will allow Shell Energy to continue making competitive offers to customers in NSW, Victoria and South Australia to support industry and manufacturing.”
APA Group acting CEO, Adam Watson, said that through investments APA Group is making in its staged 25 per cent expansion of the east coast grid, the group is playing a critical role in delivering additional energy for southern gas markets ahead of the 2023 and 2024 winters.
“We are doing all we can to support our customers, including more flexible products and services to support our customers’ supply arrangements, particularly during periods of peak demand,” said Watson.