GLNG secures more gas supply through deal with Origin

ORIGIN Energy is set to supply gas to the GLNG project on Curtis Island after an agreement was signed on Thursday.

Santos has announced that Origin Energy will sell 100 petajoules of gas for supply to the GLNG project.

The gas will be supplied at Wallumbilla, near Roma in western Queensland, over a period of five years starting in January 2016, with pricing based on an oil-linked formula.

Under the terms of the agreement, Origin can supply additional volumes of up to 94PJ of gas during the same five-year period.

GLNG vice president downstream Rod Duke said the project had secured a diverse gas supply portfolio, with supply from GLNG's own coal seam gas fields, Santos portfolio gas, underground storage and third party supply.

"When combined with GLNG's quality LNG off-take contracts with project partners Petronas and Kogas, this supply portfolio delivers significant value to the project," Mr Duke said.

"The GLNG project is progressing well - we are now more than 72% complete and remain on track for first LNG in 2015."

The agreement adds to existing agreements for the supply of 750PJ of Santos portfolio gas to GLNG over a 15-year period, and an earlier agreement with Origin for the supply of 365PJ of gas over a 10-year period.

Santos has a 30% interest in GLNG. The other participants are Petronas (27.5%), Total (27.5%) and Kogas (15%).