Oz Senex Signs Gas Supply Agreement
Senex Energy has signed a gas sales agreement with glass-packaging manufacturer O-I Australia, it said June 11.
Under the five-year agreement, Senex will supply O-I Australia with 1 petajoules/year (26.7mn m3/yr) of gas starting January 1, 2021. Further, O-I can choose to increase the total contract volume by up to an additional 1.1 petajoules/year over a five year term starting no earlier than January 1, 2022, Senex said.
O-I Australia operates four plants across the east coast of Australia, including South Brisbane plant that will consume gas from Senex’s Project Atlas. Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.
“We’re delighted to secure O-I Australia as a customer and support this leading glass-container manufacturer, employing 1050 people across Australia,” Senex CEO Ian Davies said. “This agreement marks the third domestic gas contract for Senex’s Project Atlas natural gas development, bringing the total volume under contract to over 23 petajoules. These contracted volumes are systematically de-risking future revenue from Project Atlas.”
Davies said that with first gas from Project Atlas planned for late 2019, Senex expects to write additional new gas contracts with a range of gas buyers in the coming months.