AGL agreed to a $2 billion deal with Gladstone Liquefied Natural Gas (GLNG) on Christmas Eve 2015, and plans to send a staggering 34 PJs for GLNG to sell offshore next year alone.

By Joe McDonough


Posted on October 6, 2017

Australian energy giant AGL is not a gas exporter, yet it’s involved in a deal that will result in 254 petajoules (PJ) leaving the country’s shores over an 11-year period.

To put that into perspective, News Corp has established that just one PJ is enough to power a regional city like Wollongong for an entire year. With the eastern states in the clutches of an energy crisis, and electricity prices continuing to soar, it’s an enormous loss for the local market.

The Daily Telegraph exclusive report reveals AGL agreed to a $2 billion deal with Gladstone Liquefied Natural Gas (GLNG) on Christmas Eve 2015, and plans to send a staggering 34 PJs for GLNG to sell offshore next year alone.

A spokeswoman for AGL said, “This transaction was completed prior to the announcement of the closure of the Hazlewood power station, which significantly increased the demand for gas generation.”

With NSW and Victoria seeing prices between $2-$6 higher a gigajoule (GJ) than what should be expected, Cities Minister Angus Taylor has called for AGL to sell to Australians at or below the export price of about $8 a GJ. “Gas producers shouldn’t be ripping off Australian companies to bolster their profits,” he said.

This week, Prime Minister Malcolm Turnbull secured initial agreements from gas exporters Shell, Santos and Origin that they will cover the severe shortage expected in NSW and Victoria next year.

Blame Game

Alan Jones took aim at Prime Minister Malcolm Turnbull over the airways again yesterday, and called for a new Coalition leader via Twitter on October 5. This came after the broadcaster disagreed with views that the long-term solution to drive down prices was to develop onshore gas in NSW, Victoria and the Northern Territory.

 

The PM returned serve after the Council of Australian Governments (COAG) in Canberra, when he said, “Price is a function of supply and demand. So clearly they’re connected.”

This followed comments from treasurer Scott Morrison, who made it clear he thought Jones’s public campaign against onshore gas exploration was a contributing factor.

“We are walking around on top of the gas in NSW and Victoria that our economy needs, that the jobs that depend on that gas need and it is important that this be freed up,” he said. “All of those who barrack for the moratoriums need to take some accountability that those moratoriums are denying businesses and industry the gas they need to function. That is something that needs to change.”