Oz Senex Inks Domestic Gas Supply Deal
Senex Energy has agreed a domestic gas sales agreement with manufacturer Orora for supply of up to 9.9 petajoules of natural gas, it said May 1.
Under an initial two-year agreement, Senex will supply Orora with 1.1 petajoules commencing January 1, 2020 and 2.2 petajoules commencing January 1, 2021 (3.3 petajoules in total).
Senex and Orora have also agreed a mechanism that could extend the term of the agreement by six years commencing January 1, 2022 for up to 6.6 petajoules of gas.
Gas will be supplied at the Wallumbilla gas hub in Queensland at a fixed price in line with current market levels, indexed annually, Senex said.
“This gas sales agreement is innovative in its flexibility, allowing material additional quantities of natural gas to be supplied to Orora in the future.
“Senex is committed to building long-term, mutually beneficial relationships with domestic commercial and industrial customers, and this is another great example of our strategy in action,” CEO Ian Davies said.
This agreement is the second domestic gas contract for Senex’s Project Atlas natural gas development project. Mid-April the company signed an agreement with south-east Queensland manufacturer CSR.
“With two gas sales agreements now secured and drilling to start later this month, Senex is accelerating rapidly towards first gas from Project Atlas at the end of this year,” Davies said.