Origin, ENGIE partner to lift gas supply in SA

Pelican Point. Image: ENGIE

Origin Energy has signed two agreements with ENGIE that are set to increase gas supply and energy security in South Australia.

Under the first agreement, Origin will provide gas to the Pelican Point power station and will gain access to 240MW of electricity production that will be supplied to South Australian customers.

This will begin in July 1 2017 and will run until June 30 2020, allowing Pelican Point to address high energy demands both during the 2017/18 summer season and into the future.

The second agreement – the Gas Sale agreement – will see Origin sell 8PJs of natural gas to ENGIE in Australia between 2018 and 2019.

Origin CEO Frank Calabria said the agreements will help address South Australia’s energy security challenges, particularly after the state’s power outages.

“The power outages in South Australia reinforce the need for sufficient gas-fired power generation to be readily available, especially when wind and solar energy is not available,” he said.

“These agreements are examples of immediate steps industry is taking to safeguard electricity supply and make sure more natural gas will be available to meet the needs of customers.”

Calabria reinforced the importance of understanding how energy markets both in Australia and worldwide are transitioning.

He added that collaboration between government and industry will assist in restoring the balance between energy security, affordability and sustainability in Australia.

“Renewable energy and natural gas are complementary sources of energy and are expected to play an increasingly important role in helping Australia achieve these objectives,” Calabria said.

Earlier this month the South Australian Government unveiled the first round of grants for gas exploration and development projects in the state to increase the affordability of supply and lower power costs.