Oil and Gas News

Senex, New Century enter gas agreement

Federal Court of Australia

Senex Energy has entered into a gas sales agreement with New Century Resources for the sale of around 7 petajoules (PJ) of natural gas over three years.

New Century owns and operates the Century Mine, located 250km north-west of Mount Isa, Queensland.

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 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.

Managing director and chief executive officer Ian Davies said the company was proud to supply a strong regional Queensland customer with natural gas from its Queensland operations.

“Century Mine generates significant state royalties and export earnings and is a critical project in the Queensland Government’s Strategic Blueprint for the North West Minerals Province,” he 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.”

This is the tenth major natural gas supply agreement announced by Senex since 2019.

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