The Australian government struck an agreement for additional supply commitments of up to 9 petajoules from the country's gas exporters to ensure that domestic needs are met until the third quarter, according to a Thursday statement from the Minister for Resources and the Minister for Northern Australia.
The additional supply is treated as a buffer during the high-demand winter season.
An interim report published by the Australian Competition and Consumer Commission on Thursday showed that while there is enough gas until the third quarter, securing the commitments ensures that domestic demand is prioritized over export customers.
The commitments include call options to gas-powered generators, expressions of interests, delayed shipments of liquified natural gas cargoes, and seasonal gas swaps, according to the government's statement.
Santos (ASX:STO) was up over 1% in early afternoon trade, while fellow liquefied natural gas firm Origin Energy (ASX:ORG) was little changed.
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