Upstream Gas offers AGL a more flexible, self-supply option by filling the gap between contracted supply and customer demand. Upstream Gas aims to optimise the value of the AGL gas and electricity portfolio.
With the aim to build AGL supply in areas close to the retail users, Upstream Gas holds a portfolio of production, development and exploration assets in New South Wales, Queensland South Australia and Victoria. Storage opportunities have also been added to the portfolio as a means to provide AGL a cushion in times when gas supplies are short and/or gas prices are high. Upstream Gas also explores the market possibilities of new renewable energy technologies, such as geothermal.
The Upstream Gas strategy can be summarised as follows:
- Targeting 2,000 PJ (2P) gas reserves for domestic market use
- Creating the option of natural gas self supply for AGL
- Building skills and capabilities in exploration and production
- Managing future gas volume and price risk and
- Building a growth platform of high return investments.
In the past five years, Group General Manager Mike Moraza and his leadership team have grown the Upstream Gas business from a small start-up group to a group of 145 employees and support staff.
AGL’s Upstream Gas business has been established to create a portfolio of equity gas investments that will provide AGL with a more flexible, self-supply option for the supply of natural gas to fill the gap between wholesale gas contract positions and our customer’s demand. This will ensure that AGL remains a cost competitive and reliable supplier of natural gas into the future.
The business holds exploration and production assets in locations close to AGL’s core energy supply markets in New South Wales, Queensland, South Australia and Victoria.
A new gas storage business is being developed in AGL to provide our wholesale gas business with immediate access to natural gas at times of high power generation business and other external customer demand or when high spot prices occur in the market. Access to gas storage will also allow AGL to supply our customers with a superior security of gas supply during times of unexpected interruptions or curtailment of gas supply. The Upstream Gas business is also responsible for managing AGL’s geothermal energy investment portfolio which is investigating the possibility of creating further renewable energy supply from Australia geothermal energy resources.