Shell Energy strikes long-term agreement with APA Group to send more gas south

Shell Energy Australia has struck an agreement with APA Group to transport more gas from Queensland to southern markets, commencing 1 January 2023 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 332 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 Trading David Guiver said the agreement with APA will help supply customers in NSW and Victoria, 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,” Mr Guiver said.

“This agreement will allow Shell Energy to continue making competitive offers to customers in NSW, Victoria and South Australia to support industry and manufacturing.

“Through the investments APA is making today in our staged 25% expansion of the east coast grid, we are playing a critical role in delivering additional energy security for southern gas markets ahead of winter 2023 and winter 2024,” APA Group acting CEO Adam Watson said.

“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.”