Oz Senex Inks New Domestic Gas Supply Deal
Sydney-listed Senex Energy has signed a further gas sales agreement with Australian power generator CleanCo Queensland, it said on May 14 in a statement. Initial gas sales to CleanCo – the first from dedicated domestic gas acreage in Australia – have been made since December 2019.
Under the one-year agreement, Senex will supply CleanCo with 2.55 petajoules (PJ) (2.4bn ft3) of natural gas from the Atlas project in Queensland, starting January 1. Gas will be supplied at the Wallumbilla gas hub in Queensland at a fixed price in line with current market levels, Senex said with providing further details. Atlas gas will fuel Swanbank E, CleanCo’s 385 MW gas-fired power station near Ipswich in south-east Queensland.
“The increase in supply of Atlas gas to CleanCo is a great outcome for Queensland, enabled by the state government’s policy to support the domestic market,” Senex CEO Ian Davies said. “Senex is continuing to negotiate gas sales agreements that will support jobs and regional economies as we partner with commercial and industrial customers for long-term and mutually beneficial relationships.”
Senex said it has contracted more than 35 PJ of natural gas from Atlas and production for the calendar year 2020 is fully contracted and 2021 expected production is more than 70% contracted. The company has drilled 39 wells of the 50-well Atlas campaign, with gas production at about 14 terajoules/day.