Senex gets a 10-year gas deal with Bluescope, but check the fine print
Senex has struck a deal to supply Bluescope with 20 petajoules of gas over a 10-year partnership but also said the deal was conditional and it was working with the Federal Government to satisfy those conditions.
Senex Energy has struck a 10 year deal with Bluescope (photo: supplied)
It is believed those conditions relate to the Federal Government’s gas price cap.
The Brisbane-based Senex, which is owned by Gina Rinehart and Korea’s POSCO, said the gas would come from its Atlas project in the Surat Basin and would be for Bluescope’s manufacturing works, including the Port Kembla steelworks.
Chief executive Ian Davies said natural gas was an essential fuel in manufacturing and would continue to play a vital role in Australian industry.
Bluescope chief executive of Australian steel products Tania Archibald said the agreement was an important part of the company’s manufacturing operations and natural gas was an essential input.
“A secure and reliable supply of natural gas to our operations is important to BlueScope and a decade-long gas deal with Senex assists in meeting this objective,” she said.
“This contract plays a part in supporting our manufacturing operations, delivering quality steel products used in the Australian building, defence, agricultural and renewable energy industries.
“This new gas agreement between Senex and BlueScope is subject to certain conditions precedent and Senex will work with Government to satisfy the conditions as soon as possible.”