Australian Senex signs gas supply deal

Senex Energy has signed an agreement with Australian resources company New Century Resources for the sale of around 7 petajoules (PJ) of natural gas over three years, it said on September 9.

New Century owns and operates the Century Mine, located approximately 250 km northwest of Mount Isa, Queensland. New Century employs more than 250 people in the production of zinc concentrates, and exports to 12 smelters on three continents.

Natural gas is to be supplied by Senex to New Century at the Diamantina Power Station in Mount Isa, generating the power required to operate the Century Mine. The Diamantina Power Station is owned and operated by the Australian energy infrastructure company APA Group.

Under the three-year agreement starting January 1, 2022, Senex will provide around 7 PJ of natural gas to support New Century's processing operations at a fixed price, in line with current market levels. Senex will further supply around 1 PJ of additional natural gas at New Century's election by mid-2022 in support of material increases in production levels associated with the potential development of existing in-situ deposits at the Century Mine.

This is the tenth major natural gas supply agreement announced by Senex since 2019. Senex has signed more than 75 PJ of agreements with customers including Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.