PERTH (miningweekly.com) – ASX-listed Senex Energy has expanded its natural gas sales agreement with packaging manufacturer Orora.
In May this year the two companies struck a two-year sales agreement for the supply of 3.3 PJ of natural gas from Project Atlas, starting in January next year.
The companies have now agreed to expand the sales agreement to 9.9 PJ of natural gas over a six-year period, from 2022 to 2027, bringing the total contracted volume under the gas sales agreement to 13.2 PJ.
Senex MD and CEO Ian Davies on Wednesday said that the company was proud to have reached the agreement with Orora.
“This long-term agreement greatly strengthens our partnership with Orora, a leading Australian manufacturer, supporting Australia’s manufacturing capability and jobs.
“Expansion of the gas sales agreement is a further seal of approval for Project Atlas as we continue to de-risk the asset’s future revenue stream. Senex has contracted a significant portion of expected production from Project Atlas for 2020 and 2021, and more contracts continue to be negotiated,” Davies said.
Senex earlier this week delivered its first sales gas from Project Atlas to Queensland power generator CleanCo.
Senex is supplying gas at the Wallumbilla gas hub, in Queensland, via a 60-km Project Atlas pipeline, and the gas is sold on a fixed-price basis in line with current market levels.