Australia Pacific LNG has signed a further agreement with CleanCo Queensland to provide additional gas supply to the 385 MW Swanbank gas-fired power station in 2026. The agreement represents the third gas sales contract between the two companies in as many years, supporting gas-powered generation underpinning reliable electricity supply in Queensland.
Dan Clark, CEO of Australia Pacific LNG, expressed pride in supplying gas to CleanCo, which plays an important role in delivering reliable energy supply supporting Queensland’s energy transition. He stated that the sale is in addition to existing domestic gas contracts and represents another demonstration of Australia Pacific LNG’s commitment to producing gas supporting the domestic market whilst meeting export obligations.
Tom Metcalfe, CEO of CleanCo, stated that access to reliable gas supply is essential for CleanCo to continue delivering the energy Queenslanders require. He noted that Swanbank E in Ipswich represents one of the country’s most efficient gas power stations, with the Australia Pacific LNG agreement helping ensure CleanCo can continue responding quickly to market conditions by backing up renewable energy and hydro assets to deliver cleaner energy solutions to customers.
Australia Pacific LNG’s total contribution to the East Coast Market for calendar year 2026 is 103 petajoules, representing substantial domestic gas supply alongside the company’s LNG export operations.
The successive annual agreements between Australia Pacific LNG and CleanCo demonstrate ongoing commercial relationships supporting Queensland’s electricity generation requirements. Gas-fired power stations provide dispatchable generation capacity addressing intermittency from renewable energy sources, enabling higher renewable penetration whilst maintaining grid reliability.
CleanCo Queensland, a state-owned corporation established in 2019, operates a portfolio including renewable energy assets, hydroelectric facilities, and gas-fired generation. The organisation’s mandate encompasses supporting Queensland’s renewable energy transition whilst ensuring reliable electricity supply. Gas generation serves crucial roles in this portfolio by providing rapid-response capacity supporting variable renewable output.
The Swanbank E power station’s efficiency characteristics reflect modern combined-cycle gas turbine technology converting natural gas to electricity with lower fuel consumption and emissions compared to older generation technologies. High-efficiency generation maximises electricity output per unit of gas consumed, reducing both costs and emissions intensity.
Australia Pacific LNG operates as one of Queensland’s major gas producers, extracting coal seam gas from the Surat and Bowen Basins. The company’s operations supply both domestic markets through pipeline connections to eastern Australian gas networks and international markets through liquefaction facilities at Gladstone producing LNG for export to Asian customers.
The 103 PJ domestic gas contribution for 2026 represents substantial volumes serving eastern Australian gas markets including electricity generation, industrial consumers, and residential/commercial users. This domestic supply occurs alongside LNG export operations, with Australia Pacific LNG balancing contractual obligations to international customers with domestic market supply commitments.
Eastern Australian gas markets have experienced supply-demand tensions in recent years, with declining production from traditional offshore basins increasing reliance on coal seam gas from Queensland whilst LNG export facilities create international demand competing with domestic users. Federal and state government interventions, including gas reservation mechanisms and export controls have aimed to ensure adequate domestic gas availability.
Australia Pacific LNG’s emphasis on meeting both domestic and export obligations addresses policy expectations that LNG producers contribute meaningfully to domestic gas supply rather than directing all production to higher-value export markets. The successive agreements with CleanCo provide visible demonstration of domestic market participation.
Queensland’s electricity system increasingly incorporates renewable energy from solar and wind generation, creating growing requirements for flexible generation capacity addressing renewable intermittency. Gas-fired power stations provide this flexibility through rapid startup, load-following capability, and reliability during periods of low renewable output, supporting grid stability as renewable penetration increases.
The ongoing contractual relationship between Australia Pacific LNG and CleanCo provides mutual benefits: CleanCo secures gas supply necessary for reliable power station operations, whilst Australia Pacific LNG maintains steady domestic sales complementing export revenue. Annual contract renewals enable price adjustments reflecting market conditions whilst providing medium-term supply certainty supporting operational planning.
For more information visit www.aplng.com.au
