Another gas sales contract announced today highlights the measures the Queensland gas industry is taking to ensure the gas needs of the state’s manufacturing sector are met.
Senex Energy today announced the third domestic sales contract for its Project Atlas development in central Queensland. The company will supply Brisbane-based glass packaging manufacturer O-I Australia with up to 10.5 petajoules of natural gas over five years from January 2021.
APPEA Chief Executive Andrew McConville said the new contract highlights the critical importance of developing new gas resources and the response the oil and gas industry is taking to accelerate the delivery of new supply.
“Queensland has taken a proactive approach to gas development which has delivered significant new supply to its homes and businesses, as well to many manufacturers in southern states, whose governments have put a brake on gas production,” Mr McConville said.
“Natural gas is an essential feedstock for many Australian manufacturers. Over 200,000 people work in manufacturing jobs that rely heavily on gas.”
Senex’s new supply contract is part of the billions of dollars in investment undertaken by the gas industry to bring more gas into the market, supporting both domestic gas consumption and export projects that are underpinning much of Queensland’s economic growth.
“In the past two years, we have seen significant announcements from Arrow Energy, Shell Australia, Cooper Energy, Strike Energy, GLNG, Australia Pacific LNG, Origin Energy, Santos and Senex to bring on new supply to the local market,” Mr McConville said.
“It is critical Queensland continues to support resource development to enable this to continue.”