Australian company AGL Energy has struck a deal to buy gas from the local subsidiary of US supermajor ExxonMobil.
AGL has agreed to buy 50 petajoules of gas from ExxonMobil subsidiary Esso Australia Resources between 1 January 2021 and 31 December 2022.
AGL said Wednesday the gas purchased under the deal would be used for continued supply to its gas customers.
“AGL remains committed to securing cost-competitive gas supply for its customers from the domestic market, where it is available, and new supply from international markets through its proposed AGL Gas Import Jetty,” the company said.
AGL is proposing to build a liquefied natural gas import terminal in Victoria which would involve a floating storage and regasification unit moored at Crib Point receiving supply from between 12 and 40 LNG vessels per year, depending on demand.
The import jetty will be connected via a new pipeline, which AGL currently anticipates will be about 55 kilometres long, to the existing gas distribution network in Pakenham.
Earlier this year AGL pushed back the anticipated start-up of the project 2021 to the second half of 2022.