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Esso expands gas agreement for Victorian glass maker

16th November 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gas provider Esso Australia Resources, a subsidiary of ExxonMobil, has increased its gas sales agreement with glass manufacturer Oceania Glass.

Esso earlier this year extended its gas sales agreement with Oceania Glass to continue supplying Gippsland gas until at least the mid-2020s. This latest agreement means Esso will increase the Gippsland gas supplied to Oceania Glass during that period.

ExxonMobil Australia chairperson Dylan Pugh said Esso continued to invest in delivering gas from the Gippsland basin to Australian homes and businesses, supporting local jobs and the Australian economy.

“With the current boom in Australia’s home renovation and construction industry, Australian manufacturers are relying on gas to support their production of in-demand materials such as glass, bricks, roofing and cement.”

Earlier this year, Esso commissioned the Gippsland basin’s West Barracouta project, which is set to be the largest new source of domestic gas for the Australian market this decade.

“Our ongoing investment in projects like West Barracouta means that Gippsland gas continues to flow to the Australian market and supports local manufacturers, such as Oceania Glass, and the thousands of Australians who rely on their products.

“The Gippsland basin remains the largest single source of gas supply to the east coast domestic market,” Pugh added.

“By ensuring that all of our Gippsland gas is sold for use in Australian homes and businesses, Esso is proud to be contributing to the social and economic well-being of our nation.”

The Australian Petroleum Production and Exploration Association (Appea) said on Tuesday that the expanded gas sales agreement between Esso and Oceania Glass showed how economically efficient and reliable gas is for Australian manufacturers.

Appea CEO Andrew McConville also said the agreement highlights the role gas plays in the local economy, this time in Victoria where a boom in home renovation and the construction industry is creating demand for gas to help manufacturers produce glass, bricks, roofing and cement.

‘’It’s another sign that gas continues to deliver for local customers and the local economy. This time it’s manufacturers in Dandenong South that need reliable gas for their furnaces and the supply from Gippsland delivers that reliability and certainty for them,’’ said McConville.

“This agreement to supply more gas also shows just how essential gas is in the manufacturing of many everyday products. In Australia, we have abundant gas resources and as a fuel that has only half the emissions of coal when used for electricity, our natural gas in high demand.That means high paying, skilled jobs, export dollars and taxation revenue to governments for decades.’’

Edited by Creamer Media Reporter

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