Senex Energy secures gas contract from CleanCo

Australian firm Senex Energy (SXY) has signed a one-year domestic gas sales agreement with power generator CleanCo Queensland.

Starting from 1 January next year, Senex will provide CleanCo with 2.55 petajoules (PJ) of natural gas from its Atlas project.

This gas will fuel CleanCo’s 385MW gas-fired power station, which is located near Ipswich in southeast Queensland.

The fixed price is undisclosed but will be in-line with current market conditions.

Senex Energy managing director and CEO Ian Davies said: “The increase in supply of Atlas gas to CleanCo is a great outcome for Queensland, enabled by the state government’s policy to support the domestic market.

“Senex is continuing to negotiate gas sales agreements that will support jobs and regional economies as we partner with commercial and industrial customers for long-term and mutually beneficial relationships.

“As strong demand for domestic gas supply continues, new gas sales agreements are being negotiated to further de-risk future Atlas revenue streams and strengthen overall business resilience.”

Senex has so far drilled 39 wells of the 50-well Atlas campaign.

Meanwhile, production from Atlas continues to perform at approximately 14TJ per day.

According to Senex, Atlas gas production for the calendar year is fully contracted while next year’s expected production is almost 70% contracted.

In May last year, Senex Energy started commissioning of the Roma North natural gas processing facility in the western Surat Basin in Australia.

In April 2019, the company awarded a drilling contract to oil and gas services provider Easternwell to begin its Surat Basin natural gas drilling programme in the country next month.