"British Gas is seeking to finalise gas purchase agreements with new suppliers as it works to increase volumes at its Queensland export project as quickly as possible once the plant is finished.
The company is hoping for first gas to flow through its plant late this year as it begins commissioning and starting up the power generation units, with initial gas flows of about 20 million cubic feet needed in the first two or three months.
''We are negotiating a number of third-party supply agreements so that we are as well placed as we can possibly be to fill those trains [plants] to the brim as soon as they start up,'' managing director Chris Finlayson told analysts last week.
Increasing export volumes as fast as possible was ''really the value creator … rather than the absolute date of a start-up'', he said.
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Confirmation that the company is seeking additional gas reserves comes amid speculation in the sector that each of the three Queensland export gas projects may be short of the gas to meet their contractual commitments.
Earlier this year British Gas finalised the sale of a half-interest in the export gas project to China National Offshore Oil Co, which included a share in some exploration acreage.
British Gas is looking to free up cash from the project by selling part of its equity in the infrastructure of the project. Recently, Origin Energy announced the potential sale of part of its equity in its own pipeline.
Mr Finlayson told analysts British Gas is hoping to sell equity in its water treatment plant along with its gas supply pipeline on a sale and leaseback basis."
