Senex Energy (ASX:SXY) pens sales deal

• Senex Energy (SXY) signs a gas sales deal with sustainable packaging and paper manufacturer Opal for up to 12 petajoules of natural gas
• Under an initial four-year term, starting in 2023, Senex will supply around eight petajoules of natural gas to its NSW-based partner at a fixed price
• The parties have agreed terms for a potential two-year contract extension, as well as the supply of up to four additional petajoules of gas
• Shares closed down 1.88 per cent at $3.13 each

Senex Energy (SXY) has penned a gas sales deal with sustainable packaging and paper manufacturer Opal for up to 12 petajoules of natural gas.

Opal is a member of the Nippon Paper Group and manages more than 80 sites across Australia and New Zealand.

Under the initial four-year deal, which will take effect from January, 2023, Senex will supply around eight petajoules of natural gas, at a fixed price, to Opal’s manufacturing operations in Botany, New South Wales.

Accordingly, the deal provides Opal with competitively priced natural gas, in line with market pricing.

Further, the parties have agreed terms for a potential contract extension of up to two years and the sale of up to four additional petajoules — giving Opal flexibility as it explores longer-term energy solutions.

Senex Managing Director and CEO Ian Davies said the company was proud to supply its new partner.

“The agreement broadens Senex’s reach in supplying natural gas throughout the east coast, with our Surat Basin gas to support industry in New South Wales for the first time,” 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.”

Since 2019, SXY has reportedly signed around 70 petajoules of natural gas sales agreements with the likes of CSR Building Products, CleanCo Queensland, Alinta Energy and more.

Shares closed down 1.88 per cent at $3.13 each.