Oz Senex Inks Domestic Gas Supply Deal
Sydney-listed Senex Energy September 22 announced a domestic gas sales agreement for up to 2.5 petajoules (PJ) (2.4bn ft3) of natural gas with Southern Oil Refining’s Northern Oil Refinery near Gladstone, Queensland.
Under the initial two and a half year agreement, Senex will supply Northern Oil Refinery with 0.3 PJ/year of gas. But the deal includes an option for an extra five years of 0.35 PJ in annual supply, bringing the total quantity to 2.5 PJ.
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 without giving further prices details. Northern Oil Refinery will use Atlas natural gas in its oil refining and advanced biofuels production plants at Yarwun, near Gladstone.
The announcement follows the award of new Atlas gas acreage to Senex as part of the Queensland government’s domestic gas acreage tender process. “The new acreage will underpin a 50% increase in Atlas gas production to approximately 18 PJ/year,” the company said.