Santos, Origin gas agreement to continue support for Australian manufacturing

Santos has signed a new agreement with energy supplier Origin, which they say demonstrates its continued support for Australia’s manufacturing industry.

Under the agreement, Santon and Origin will supply ethane gas to the Sydney-based manufacturer Qenos – Australia’s sole producer of polyethylene and global supplier of polymers – until the end of 2019.

Ethane processed at the Santos-operated Moomba gas plant is piped to Qenos’ operations at Botany Bay and is used for a feedstock in the manufacture of polyethylene.

The polyethylene is used across a range of industries and applications, including consumer and industrial packaging, water conservation, waste management and agriculture.

Managing director and CEO, Kevin Gallagher, said he was pleased Santos could continue to provide ethane to the New South Wales manufacturer.

“The Cooper Basin has been supplying ethane to Qenos for over 20 years, and I am delighted we have been able to agree new supply arrangements with the company and reinforce our support for Australia’s manufacturing industry,” he said.

“The agreement also highlights the point that gas is not only a clean, reliable energy source, it is a critical constituent in a range of manufactured products.”