AGL Energy Limited has announced that, following a comprehensive review of its Upstream Gas business, it would focus on core gas projects and divest non-core and under-performing gas assets and activities.
AGL has a strong gas supply position through a combination of contracted gas at competitive prices and owned production at Camden. This covers AGL's expected household demand until 2027 and contracted commercial and industrial demand until 2021, and can be augmented by ongoing portfolio management tailored to customers' requirements. This position enables AGL to focus on a small number of gas projects including strategically important gas storage while avoiding significant capital expenditure, releasing poorly performing assets and allowing management to concentrate on enhancing shareholder value across the group.
Core projects to be retained include the Camden Gas Project, Gloucester Gas Project, Silver Springs underground storage facility, Wallumbilla Liquefied Petroleum Gas plant and the recently opened Newcastle Gas Storage Facility (NGSF). These assets enhance AGL's flexibility in managing its gas portfolio.