ExxonMobil expands gas sales pact with Oceania Glass

Esso Australia, a subsidiary of ExxonMobil, has boosted its gas sales agreement with Oceania Glass, which will see the company supply additional volumes of Gippsland gas to the Australian glass manufacturer, it said on November 16.

Oceania Glass is Australia’s only manufacturer of architectural flat glass. Its Dandenong South operations rely on the supply of Gippsland gas to power the furnace at the heart of its manufacturing process.

Earlier this year, Esso extended its gas sales agreement with Oceania Glass to continue supplying Gippsland gas until at least the mid-2020s. This latest agreement means Esso will increase the Gippsland gas supplied to Oceania Glass during that period. Esso commissioned the Gippsland basin’s West Barracouta project in April this year.

Australia's peak oil and gas body Appea said the agreement highlights the role gas plays in the local economy, this time in Victoria where a boom in home renovation and the construction industry is creating demand for gas to help manufacturers produce glass, bricks, roofing and cement.

“This agreement to supply more gas also shows just how essential gas is in the manufacturing of many everyday products," Appea CEO Andrew McConville said. "In Australia, we have abundant gas resources and as a fuel that has only half the emissions of coal when used for electricity, our natural gas in high demand. That means high paying, skilled jobs, export dollars and taxation revenue to governments for decades.’’