Oil and Gas News

Senex, Opal ink new gas sales agreement

Bass Oil

Senex Energy has secured a gas sales agreement with Australian packaging and paper manufacture Opal, for up to six year and up to 12 petajoules (PJ) of natural gas.

Under the initial four-year agreement starting January 1, 2023, Senex will provide around 8 pJ of natural gas to support the Opal paper and recycling division’s manufacturing operations at Botany, New South Wales, at a fixed price, in line with current market levels.

The agreement provides Opal with competitively priced natural gas, which is an essential manufacturing input.

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, providing Opal with some flexibility in the medium term as it continues to explore longterm energy solutions.

Senex managing director and chief executive officer Ian Davies said the company was proud to supply Opal, one of Australasia’s leading packaging and paper companies.

“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,” 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.”

Since 2019, Senex has signed approximately 70 PJ of natural gas sales agreements with a range of household names also including CSR Building Products, Orora, Visy Glass, CleanCo Queensland, Alinta Energy, Adbri, Nyrstar, Southern Oil Refining, and now Opal.

Opal, a member of the Nippon Paper Group, produces sustainable fibre packaging and paper solutions, employing more than 4000 employees across its operations, with over 80 sites in Australia and New Zealand.

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