Senex signs offtake agreement with 29Metals

24th September 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX-listed Senex Energy has inked a gas sales agreement with copper miner 29Metals for its Capricorn operation, in Queensland.

Under the three-year agreement, starting in January next year, Senex will supply 2.5 PJ of natural gas to support mining and processing operations at a fixed price, and in line with current market levels.

The gas supply agreement could be extended by a further two years, which would increase sales to around 4 PJ.

Senex MD and CEO Ian Davies on Friday said that the company was proud to supply another Queensland customer with natural gas from its Queensland operations.

“The Capricorn copper mine is a critical project in the Queensland government’s Strategic Blueprint for the North West minerals province. Copper in particular has a large role to play in the production and operation of next generation clean technologies such as electric vehicles, and solar and wind power sectors,” said Davies.

The Queensland Resources Council (QRC) has welcomed the energy agreement, with CEO Ian Macfarlane saying it was great news for both Queensland and Senex, which supplies the equivalent of 10% of Queensland’s gas demand.


“Senex Energy’s gas offer is essential to support Metal29’s ongoing production and yet another practical demonstration of the Queensland Government’s domestic gas policy delivering results,” Mr Macfarlane said.


“Senex are an excellent example of a Queensland resources company that’s focused on building long-term and mutually beneficial partnerships. Both companies will contribute significant royalties to the state government, which go straight into the state budget to fund essential government services.


“By helping to keep Metal29’s products competitive, Senex is helping to create jobs in Gulf Country communities like Gunpowder - proving that Queenslanders can count on the resources industry to help Qeensland recover from Covid-19.


“Senex has now signed around 80 PJ of agreements with domestic customers including Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.”

The Australian Petroleum Production and Exploration Association (Appea) has also welcomed the gas agreement, with acting CEO Damian Dwyer saying the three-year agreement marked the 110th gas agreement struck with domestic customers since December 2012.

“Gas means jobs. Gas means reliability. Gas means a bright future for regional Queensland. Gas has showed how reliable it is throughout the pandemic and with the breakdown of other energy sources, the industry has continued to do the heavy lifting to ensure the lights are kept on, factories kept running and that there is no gas shortfall in the domestic market.

“The market is clearly working with competitively priced gas continuing to deliver for Australia. Domestic users are paying less for Australian gas over the long term than overseas markets and have been doing so for some time.”