- Senex Energy (SXY) pens three-year deal with fellow ASX player New Century Resources (NCZ) for the sale of around seven petajoules (PJ) of natural gas
- Senex will supply gas to NCZ through APA Group’s Diamantina Power Station to generate power required to operate the Century Mine in Queensland
- SXY says it will supply seven PJ of gas at a fixed price and potentially a further one petajoule at New Century’s election for zinc processing
- Shares in Senex Energy are up 1.55 per cent to $3.27 each and NCZ is down 5.88 per cent at 16 cents at 2:36 pm AEST
Senex Energy (SXY) has penned a deal with fellow ASX player New Century Resources (NCZ) for the sale of around seven petajoules (PJ) of natural gas.
New Century owns and operates the Century Mine, some 250 kilometres northwest of Mount Isa, and employs more than 250 people in the production of zinc concentrates.
Under the three-year agreement, Senex will supply natural gas to NCZ via APA Group’s Diamantina Power Station to generate the power required to operate the Century Mine.
SXY said it would supply seven PJ of gas at a fixed price, in line with current market levels, and a further one PJ at New Century’s election by mid-2022 in support of material increases in production levels.
Senex’s managing director and CEO Ian Davies said the company was proud to supply a strong regional Queensland customer with natural gas from its operations in the same state.
“Century Mine generates significant state royalties and export earnings, and is a critical project in the Queensland Government’s Strategic Blueprint for the North West Minerals Province,” he said.
“Senex looks forward to building another strong, long-term and mutually beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower carbon future.”
Mr Davies also acknowledged APA as an important part of the value chain delivering energy to Mount Isa.
The deal is the 10th major natural gas supply agreement announced by Senex since 2019, with more than 75 petajoules’ worth of deals made with customers such as Adbri, CleanCo Queensland and Visy Glass.
Shares in Senex Energy are up 1.55 per cent to $3.27 each and NCZ is down 5.88 per cent at 16 cents at 2:36 pm AEST.