Senex Energy announced it had agreed a domestic gas sales agreement for up to 3.25 petajoules (PJ) of natural gas with south-east Queensland manufacturer CSR.
This agreement represents the first domestic gas contract from Senex’s Project Atlas natural gas development project and will support local manufacturing and local jobs.
CSR will use the gas in its three south-east Queensland manufacturing plants that make PGH™ bricks, Gyprock™ plasterboard and Bradford™ insulation. The plants employ 260 people at Brendale, Coopers Plains and Oxley.
Under the initial three-year agreement, Senex will supply CSR Building Products Limited, a wholly owned subsidiary of CSR Limited, with 0.65 PJ of gas a year (1.95 PJ in total) commencing 1 January 2020. CSR can extend the agreement by up to a further two years, taking the total contract quantity to 3.25 PJ.
Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.
Managing Director and CEO Ian Davies said Senex was proud to support local manufacturing, jobs and investment.
“We’re delighted to secure CSR as a customer and support this key Queensland manufacturer of essential building products.
“Senex’s initial gas marketing focus is to partner directly with domestic commercial and industrial customers for long-term, enduring and mutually beneficial relationships.
“This agreement with CSR follows the Queensland Government’s policy to support new supplies of natural gas into the domestic market and this is a great outcome for Queensland.
“For Senex, 2019 is a transformational year. This gas sales agreement is one of many milestones to come as we deliver our east coast gas development projects,” Mr Davies said.
Source: Company Press Release.