Armour Energy has begun selling gas from its Kincora plant to the Queensland market.
The company announced today the sale was a result of it being able to increase production beyond the 10 terajoules a day required to meet its obligations under an agreement with Australia Pacific LNG Pty Limited.
“This is a significant achievement for Armour for two reasons,” chief executive officer, Roger Cressey, said.
“The company’s production rates are now fully satisfying the agreement with APLNG and the company has commenced selling into the broader Queensland gas market.
“With this milestone, Armour continues to demonstrate its commitment to increase production and gas supplies into the eastern Australian domestic gas market.”
The increase in the production rate follows recent maintenance work at the Kincora plant, near Roma, which was carried out ahead of summer, which historically sees peak gas demand and prices in Queensland.
Gas production is from existing wells plus some gas drawn from the Newstead storage facility.
This will provide Armour with the opportunity to maximise returns during the summer peak period.