Industry scores 20th Gas Sales Agreement for 2021, APPEA says

APPEA

Image credit: APPEA.

The Australian Petroleum Production & Exploration Association (APPEA), the voice of Australia’s oil and gas industry, has welcomed the 20th Gas Sales Agreement of 2021 after a new deal was announced by Esso Australia Resources Pty Ltd. 

APPEA said the extension of the deal between the ExxonMobil Australia Pty Ltd subsidiary and major construction firm, InfraBuild, demonstrated the strength of the market. 

The deal will see Gippsland gas used to support InfraBuild’s sustainable steel manufacturing operations in Victoria and NSW into at least the mid-2020s.  

This news is further proof that the industry is delivering supply for manufacturers, APPEA deputy chief executive Damian Dwyer said. 

“There have been more than 100 local GSAs since December 2012 to supply domestic customers – from building supplies to fertilizer to packaging and paper,” Dwyer said.  

“The market is clearly working, with competitively priced gas continuing to deliver for Australian manufacturers while supporting jobs in the national economy.” 

APPEA is calling for a focus on investment policy settings for the oil and gas industry, after a recent independent study found national economic output could increase by over $350 billion and create more than 220,000 jobs over the next two decades in the right conditions.  

“More gas means more jobs and there is a massive future opportunity for Australia,” Dwyer said. “If we do well and the industry continues to prosper, so will local gas supply and we know the cheapest gas is the gas closest to the customer. 

“The oil and gas industry currently underpins around 80,000 direct and indirect jobs – and hundreds of thousands of Australian jobs rely on reliable, affordable and sustainable supply.”