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- Senex Energy (SXY) has signed a one-year gas sales agreement with power generator CleanCo Queensland
- Beginning on January 1 2021, Senex will provide CleanCo with 2.55 petajoules of natural gas from its Project Atlas
- This gas will fuel CleanCo’s 35-megawatt gas-fired power station which is located near Ipswich in southeast Queensland
- The price is unknown as of yet but it will be at a fixed price that is in-line with the current market levels
- Senex is up a slight 1.25 per cent on the market and shares are trading for 20.3 cents each
Senex Energy (SXY) has signed a one-year gas sales agreement with power generator CleanCo Queensland.
Beginning on January 1, 2021, Senex will provide CleanCo with 2.55 petajoules (PJ) of natural gas from its Project Atlas.
This gas will fuel CleanCo’s 35-megawatt gas-fired power station, which is located near Ipswich in southeast Queensland.
The gas price is still unknown, but Senex has assured shareholders it will be fixed at a price in-line with current market levels.
“Senex is continuing to negotiate gas sales agreements that will support jobs and regional economies as we partner with commercial and industrial customers for long-term and mutually beneficial relationships,” CEO and Managing Director Ian Davies said.
“As strong demand for domestic gas supply continues, news sales agreements are being negotiated to further de-risk future Atlas revenue streams and strengthen overall business resilience,” he added.
Project Atlas
According to Senex, Project Atlas, which is located near Wandoan in Queensland, is the first natural gas acreage in Australia that is dedicated to supplying domestic customers.
Gas produced from this project is being used to generate electricity and make a wide variety of products in the sunshine state — everything from bricks to beverage bottles.
As it is a local gas project supplying to local companies, Senex says many jobs have been created and saved by Project Atlas.
The 58 square kilometre project comprises an initial 60 gas wells, but it has had over 100 wells in total over its project life.
Approximately 12 petajoules of gas are produced each year, or roughly 32 terajoules per day.
Senex is up a slight 1.25 per cent on the market and shares are trading for 20.3 cents each at 11:33 am AEST.
