Orica's sodium cyanide manufacturing facility at Yarwun will get gas from Shell.
Orica's sodium cyanide manufacturing facility at Yarwun will get gas from Shell. Mike Richards GLA100215NITE

Orica's Yarwun project scores gas from Shell

SHELL Australia's QGC joint venture will supply gas from Queensland's Surat Basin gas fields to Orica's Yarwun facility under an 18 month agreement.

Shell chairman Zoe Yujnovich said supplying the Australian domestic gas market was an important part of Shell's business in Australia.

"These new sales agreements come after significant contracts were signed with power generators and retailers," she said.

"Together they bring QGC's total domestic sales to about 11% of east coast demand for 2017.

"Shell's business on the east coast has reacted to the gas market and reduced export volumes to supply additional gas to the domestic market during 2017."

Zoe said Shell had long held the view that community acceptance of an LNG export industry depended on a reliable supply of gas to Australian customers.

"Make no mistake the business I lead is pursuing further domestic supply agreements - and has taken proactive steps to supply the east coast gas market," she said.

The oil and gas giant has also committed to supplying gas to Engie's Pelican Point power plant in South Australia for five months during the peak winter period to help secure electricity contracts to major industrial users.

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