Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Senex Energy (SXY) has expanded its natural gas sales agreement with Orora (ORA), agreeing to supply 13.2 petajoules of natural gas from Project Atlas
  • Both companies have now agreed to expand the agreement, with Senex to supply a further 9.9 petajoules of natural gas from 2022 to 2027
  • Project Atlas is the Queensland Government’s first domestic gas acreage tender with aims to increase the supply of gas to Australia’s east coast
  • Senex has ended the day 4.48 per cent in the green with shares trading for 35 cents apiece

Senex Energy (SXY) has expanded its natural gas sales agreement with Orora (ORA), agreeing to supply 13.2 petajoules of natural gas from Project Atlas.

In May 2019 Senex announced a two-year gas sale agreement with Orora for supply of 3.3 petajoules (PJ) of natural gas from January 1, 2020.

Both companies have now agreed to expand the agreement, with Senex to supply a further 9.9 PJ of natural gas from Project Atlas over a six year period from 2022 to 2027.

This now brings the total contracted volume to 13.2 PJ.

Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a price calculated annually by consumer price index.

Senex Managing Director and CEO Ian Davies said the company is proud the agreement got extended.

“This long-term agreement greatly strengthens our partnership with Orora and expansion of the gas sales agreement is a further seal of approval for Project Atlas as we continue to de-risk the asset’s future revenue stream,” Ian commented.

“Senex has contracted a significant portion of expected production from Project Atlas for 2020 and 2021, and more contracts continue to be negotiated,” he added.

Project Atlas is the Queensland Government’s first domestic gas acreage tender, an innovative initiative to increase supply of gas and help provide energy security for businesses and households on Australia’s east coast.

Senex has ended the day 4.48 per cent in the green with shares trading for 35 cents apiece in a $487.7 million market cap.

SXY by the numbers
More From The Market Herald
Pure Hydrogen (ASX:PH2) - Managing Director, Scott Brown

" Pure Hydrogen (ASX:PH2) and Advik to establish hydrogen ecosystem in India

Pure Hydrogen (ASX:PH2) will form a joint venture with Indian-based automotive components manufacturer Advik Hi-Tech.

" Woodside Petroleum (ASX:WPL) makes official name change

Woodside Petroleum (ASX:WPL) has changed its name to Woodside Energy Group, effective from Wednesday, May 25.
Grand Gulf Energy (ASX:GGE) - Managing Director, Dane Lance

" Grand Gulf Energy (ASX:GGE) sees high helium concentrations in Jesse#1A well

Grand Gulf Energy (ASX:GGE) has detected helium concentrations up to 37 times above background levels in…
Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls

" Strike Energy (ASX:STX) eyes long-term fertiliser offtake deal

Strike Energy (ASX:STX) has agreed to potentially sell 1.4 million tonnes per year of granulated urea…