<article><p class="lead">Australian independent Origin Energy's 9mn t/yr Australia-Pacific LNG (APLNG) facility in Queensland will supply over 2PJ of additional gas into the domestic market this year.</p><p>This move comes following pressure from Canberra to divert more gas away from the export markets as the exporter faces a supply crunch at home. </p><p>Under the agreements, APLNG will supply 0.9PJ of gas to Australia-based and Hong Kong-owned utility EnergyAustralia and 1.2PJ to Australian utility and gas firm Alinta Energy. </p><p>These sales contracts are consistent with APLNG's commitment to supply the domestic market under an earlier <a href="https://direct.argusmedia.com/newsandanalysis/article/2375477">heads of agreement</a> signed with the federal government in September 2022, and at terms that reflect the recently legislated <a href="https://direct.argusmedia.com/newsandanalysis/article/2400944">price cap</a>, APLNG chief executive officer Khoa Dao said in a press release published on 21 March. </p><p>"In addition to these latest gas sales, APLNG provides approximately 130PJ of gas into the domestic market during 2023 under medium and long-term gas supply agreements that clearly demonstrate our longstanding commitment to the domestic market," Doa added. </p><p>The Australian Competition and Consumer Commission (ACCC) expects an improved supply outlook over 2024-2026, said ACCC commissioner Anna Brakey on the sidelines of the Australian Domestic Gas Outlook 2023 conference held in Sydney over 20-23 March. </p><p>Domestic gas production will mostly be sufficient to cover domestic gas demand and meet expected LNG export demand based on increased forecast production and forecast demand across the east coast, said Brakey. This is mainly because of increased forecast production in the Otway, Surat and Bowen basins, decreased forecast domestic demand and lower forecast additional or spot LNG exports.</p><p>But she added that significant medium-term risk still remained, as demand may not fall as much as expected. </p><p>She stressed that <a href="https://direct.argusmedia.com/newsandanalysis/article/2356458">commitments by LNG exporters</a> to supply gas to the domestic market are essential to ensure that a supply shortfall is avoided. LNG producers reported to the ACCC last year that they collectively expect to export 88 PJ out of 146 PJ of uncontracted gas. This leaves 58 PJ of uncontracted gas which will likely not be exported, and if fed back into the domestic market, should leave sufficient gas to avoid a shortfall. </p><p class="bylines">By Rou Urn Lee </p></article>
