Australian natural gas producer Senex Energy has inked a gas sales agreement with Australian manufacturer Opal ‘for up to six years and up to 12 petajoules (PJ) of natural gas’.
Under the initial four-year agreement, which commences 1 January 2023, Senex will provide approximately 8 PJ of natural gas to support the Opal Paper & Recycling division’s manufacturing operations at Botany, New South Wales, at a fixed price, in line with current market levels.
According to Senex’s statement, the two companies have also agreed terms for a contract extension of up to two years and up to a further 4 PJ of sales.
Senex Managing Director and CEO Ian Davies said the company was proud to supply Opal, which is a member of the Nippon Paper Group and produces sustainable fibre packaging and paper solutions at its more than 80 sites across Australia and New Zealand.
“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,” Mr Davies 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.”