Australia’s Senex reduces GLNG supply due to lower demand
- Business developments & projects
Australian energy company Senex will reduce natural gas supply to the Santos-operated GLNG project on Curtis Island near Gladstone and divert it to the domestic market.
Senex said Tuesday it would cut gas supply by around 1 petajoules over the period from June to August 2020 at GLNG’s request, following lower offtake requirements at the liquefaction plant.
GLNG is a joint venture of Santos, Malaysia’s Petronas, France’s Total, and Korean Gas Corporation.
The 7.8 million tonnes per annum plant has been supplying Asian customers since 2015.
However, the effects of the coronavirus pandemic have dampened demand for LNG in Asia pushing prices down to record lows.
Senex and GLNG have agreed to re-direct these volumes destined to the LNG facility to the Wallumbilla natural gas supply hub.
Senex said it would market this natural gas, together with higher than expected production from its Atlas project, to east coast gas customers as a part of its supply portfolio.