PERTH (miningweekly.com) – ASX-listed Senex Energy has inked a domestic gas sales agreement with power generator CleanCo Queensland for 2.55 PJ of natural gas from its Atlas project, starting in January next year.
The gas will be supplied at the Wallumbilla gas hub, in Queensland, at a fixed price in line with the current market levels. The Altas gas will fuel CleanCo’s 385 MW gas-fired power station near Ipswich.
Senex MD and CEO Ian Davies on Thursday said that the company was proud to be helping power homes and businesses throughout Queensland with cleaner energy.
“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 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. “
Davies said the strong demand for domestic gas supply continues, with new gas sales agreements being negotiated to further de-risk future Atlas revenue streams and to strengthen the overall business resilience.
The Australian Petroleum Production and Exploration Association (Appea) has welcomed the new one-year agreement.
“During these tough times, it’s encouraging to see the oil and gas industry continuing to supply natural gas to domestic customers, including manufacturers to help support local jobs and economic growth,” Appea CEO Andrew McConville said.
“Natural gas supply agreements provide certainty for manufacturers and highlight the ongoing investment industry is making to increase the flow of gas to the east coast market.”
McConville said industry had announced billions of dollars in new investment in recent years to bring more gas into the market, supporting domestic gas consumption and export projects underpinning Australia’s economic growth.
Senex has contracted more than 35 PJ of natural gas from Atlas, and gas production from the project for the 2020 calendar year has been fully contracted, while some 70% of the 2021 production has also been contracted.