TOUGH TIMES: Origin has written down the value of APLNG by more than $1 billion.
TOUGH TIMES: Origin has written down the value of APLNG by more than $1 billion.

PM cracks down on Gladstone's $70B LNG projects

GLADSTONE'S three mutli-billion dollar LNG plants will supply more gas to the domestic market after a stern warning from Australia's Prime Minister yesterday.

CEOs from the three controversial Curtis Island plants met with Malcolm Turnbull yesterday to help find a solution to the nation's looming gas shortage.

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Domestic gas supply was one of the key topics during a crisis meeting between Mr Turnbull and gas leaders.

Mr Turbull said the gas producers had agreed to make more gas available to the domestic market "as soon as possible" in a bid to protect their social licence.

Shell Australia, part owner of QCLNG, chairman Andrew Smith said they understood the importance of the export industry needing to ensure Australia's gas supply was efficient.

BG Group took 100% control of QCLNG last week and today they went one step closer to being bought by Royal Dutch Shell. Photo Mike Richards / The Observer
BG Group took 100% control of QCLNG last week and today they went one step closer to being bought by Royal Dutch Shell. Photo Mike Richards / The Observer Mike Richards GLA261214LNGD

Smith said Shell's project had signed a number of domestic gas contracts recently, including with AGL and Alinta.

He said the project had already reduced LNG export shipments to supply additional gas to the domestic market.

Flynn MP Ken O'Dowd defended the three Curtis Island LNG sites yesterday, highlighting their contribution to the domestic market.

He said APLNG already supplied Gladstone industries with gas including Rio Tinto Yarwun, Queensland Alumina, Orica and Boyne Smelter.

"We have always had a bipartisan approach to development of gas with both major parties agreeing it is important to ensure the gas industry is developed in an environmentally sustainable way."

Mr O'Dowd, like Gladstone MP Glenn Butcher, backed the Federal Government's call for New South Wales and Victoria to open up their gas supplies for drilling, like Queensland.



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