AGL is backing away from gas exploration and production, with plans to sell a range of Queensland CSG assets.
In an announcement today, the energy giant said those activities would no longer be a core business for the company due to the volatility of commodity prices and long development lead times.
It plans to sell its Queensland natural gas assets at Moranbah, Silver Springs and Spring Gully, apart from gas storage and related plant at Silver Springs, conceding that this may take some time due to difficult market conditions.
In New South Wales, AGL will not proceed with the Gloucester Gas Project and will cease production at the Camden Gas Project in South West Sydney in 2023, 12 years earlier than previously proposed.
There is no change to AGL’s commercial or retail gas activities, with the company saying it was confident it had sufficient gas for its residential and small business customers following the recent contract with the Gippsland Basin Joint Venture and the planned expansion of the Eastern Gas Pipeline.
Incremental future gas requirements are likely to be sourced from the southern markets.
AGL expects to recognise an impairment charge of $640 million after tax ($795 million pre-tax) against the carrying value of its gas exploration and production assets including an increase in rehabilitation provisions.
More at https://www.agl.com.au/about-agl