- Senex Energy (SXY) has signed a two-year gas sales agreement with Australia's fourth-largest energy retailer, Alinta Energy
- Under the agreement, Senex will supply four petajoules of natural gas to Alinta
- Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price, which is in line with current term contract market levels
- Senex is down 1.54 per cent on the market this morning and is trading for 32 cents
Senex Energy (SXY) has signed a new two-year gas sales agreement with energy wholesaler and retailer, Alinta Energy.
Under the agreement, from the first day of 2021, Senex will supply four petajoules of natural gas to Alinta. The gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price, which is in line with current term contract market levels.
Alinta Energy is well known around Australia and is the country's fourth-largest energy retailer.
Senex Managing Director and CEO, Ian Davies, is pleased with the new deal and to "supply another customer with a strong Queensland presence."
"Senex continues to work with potential customers to supply natural gas that will support Australia’s gas-led recovery and creation of sustainable jobs for Queenslanders," he said.
"Alinta Energy adds to our growing portfolio of domestic commercial and industrial customers, including CSR, Orora, Visy Glass, CleanCo Queensland and Southern Oil Refining. These long-term and mutually beneficial relationships reinforce Senex’s importance as a material supplier of natural gas to the east coast market," the CEO added.
Earlier this month, Senex kicked off the 2021 financial year with a 13 per cent increase in its September quarter production.
The company's Surat Basin assets produced 632,000 barrels of oil equivalent, which is a 22 per cent increase from the prior quarter. However, its total sales revenue dropped 8 per cent to $31.1 million due to the decline in oil prices in the last quarter of FY20.
Senex is down 1.54 per cent on the market this morning and is trading for 32 cents at 11:39 am AEDT.