Against a backdrop of uncertainty and fear of an energy supply crisis in the east, Origin Energy has signed an agreement to buy 41 petajoules of gas from Australia Pacific LNG to help meet domestic demand.
Origin Executive General Manager Energy Supply and Operations, Greg Jarvis, said: “Today’s agreement to buy a substantial volume of gas follows Origin’s recent commitment to bring on more supply to help meet the needs of the domestic market.
“Our east coast portfolio needed more gas to allow Origin to meet demand from large customers who rely on gas for their businesses, and also to fuel peaking power stations which are crucial to security of electricity supply – particularly as we head into the summer period.”
The agreement is for a period of 14 months starting in November 2017, this after Origin recently opened up a new line of business in WA’s Perth, while also selling off eastern gas subsidiary Lattice Energy.
Jarvis continued: “East coast LNG producers including Australia Pacific LNG have committed to divert more gas to the domestic market to avoid any potential gas shortfall, and this agreement shows Origin’s determination to be part of the solution to get more gas to Australian customers.
“We have also consistently stated that increasing gas supply to the domestic market is a critical action to help bring down gas prices for customers.”