Senex Energy has agreed to a domestic gas sales agreement for up to 10.5 petajoules (PJ) of natural gas with glass-packaging manufacturer Owens-Illinois (O-I) Australia.
Under the five-year agreement, which commences 1 January 2021, Senex will supply 1PJ of gas a year over a five-year term, providing O-I’s Australian East Coast manufacturing plants with additional gas supply certainty.
Ian Davies, managing director and chief executive officer of Senex, says the gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.
“This agreement marks the third domestic gas contract from Senex’s Project Atlas natural gas development, bringing the total volume under contract to over 23PJ.
These contracted volumes are systematically de-risking future revenue from Project Atlas,” Davies said.
“With first gas from Project Atlas planned for late 2019, Senex expects to write additional new gas contracts with a range of gas buyers in the coming months.”
O-I manufacturers supplies glass containers to breweries and beverage suppliers. The company operates four plants across the east coast of Australia, including O-I’s South Brisbane plant that will consume gas from Project Atlas.