AGL mum on effect of sale

ENERGY giant AGL has batted away questions on providing gas to Glencore’s Townsville copper refinery, saying they are continuing to engage over long- term supply arrangements.

But why it has taken more than 18 months of negotiations so far or what impact the sale of its Moranbah gas assets will have on the refinery, AGL is not saying.

“The North Queensland Energy Joint Venture between AGL and Arrow Energy, which is operated by AGL, has a longstanding relationship with Glencore’s copper refinery whose consumption requirements continue to be fully met by the joint venture,” an AGL spokesman said in a statement.

“The parties recently extended supply requirements until the end of the year and are continuing to engage on longer term supply arrangements.”

The refinery sources gas from the stand- alone North Queensland gas pipeline which runs between Moranbah and Townsville.

The joint venture also supplies the Townsville Power Station at Yabulu and shares rights to all the electricity generated.

AGL last month announced it had agreed to sell its 50 per cent stake in the North Queensland gas assets to a consortium of Shandong Order Gas Co Ltd and Orient Energy Pty Ltd.

Sources have told the Bulletin they believed AGL considered the best option for them was to sell the gas assets without a long- term contract attached and that Shandong had expressed interest in developing export facilities, leaving the refinery without gas and at risk of closure.

The sources say the issue is not about the price of gas but access to it.

Shandong has not responded to inquiries by the Bulletin.