Oil and Gas News

Senex to support QLD refinery through gas agreement

Atlas expansion project

Senex Energy has secured a gas sales agreement (GSA) with Southern Oil Refining’s Northern Oil Refinery in Queensland for up to 2.5 petajoules (PJ) of natural gas.

The Northern Oil Refinery will use Atlas natural gas in its oil refining and advanced biofuels production plants at Yarwun, with the biofuels production plant undertaking ground-breaking research in the application of waste material to produce bio-crude oil.

Under the initial two-and-a-half year agreement, Senex will supply Northern Oil Refinery with 0.3 PJ of gas a year with the option to extend the supply of gas for a further five years at 0.35 PJ a year, taking the total contract quantity to 2.5 PJ.

Senex expects the GSA to help Northern Oil Refinery grow its business and support 31 jobs directly and hundreds of jobs indirectly across Queensland.

Managing director and chief executive officer Ian Davies said the gas sales agreement with Northern Oil Refinery followed the announcement of Senex’s planned 50 per cent increase in Atlas natural gas production.

“This gas sales agreement adds to our existing portfolio of domestic customers with a Queensland presence including CSR, Orora, Visy Glass and CleanCo Queensland, reinforcing Senex’s importance as a supplier of natural gas to the east coast market,” Davies said.

“Senex is committed to investing for the long-term to unlock both development-ready and exploration opportunities and working with our customers to deliver affordable and sustainable gas supply to the domestic market.”

The announcement follows the award of new Atlas gas acreage to Senex and being awarded preferred status for natural gas acreage in the Surat and Bowen basins, as part of the Queensland Government’s domestic gas acreage tender process, which will underpin a 50 per cent increase in Atlas gas production to 18 PJ a year.

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