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Senex Energy Limited: and New Century Resources Agree New Gas Sales Agreement

08.09.2021  |  ABN Newswire
Brisbane, Australia - Senex Energy Limited (ASX:SXY) (FRA:UDB) (OTCMKTS:VPTOF) today announced a gas sales agreement with Australian resources company New Century Resources Ltd. (ASX:NCZ) for the sale of around 7 petajoules (PJ) of natural gas over three years.

New Century owns and operates the Century Mine, located approximately 250 kilometres north-west of Mount Isa, Queensland. New Century employs more than 250 people in the production of zinc concentrates, and exports to 12 smelters on three continents.

Natural gas is to be supplied by Senex to New Century at the Diamantina Power Station in Mount Isa, generating the power required to operate the Century Mine. The Diamantina Power Station is owned and operated by APA Group.

Under the three-year agreement starting 1 January 2022, Senex will provide around 7 PJ of natural gas to support New Century's processing operations at a fixed price, in line with current market levels. Senex will further supply around 1 PJ of additional natural gas at New Century's election by mid-2022 in support of material increases in production levels associated with the potential development of existing in-situ deposits at the Century Mine.

Senex Managing Director and CEO Ian Davies said the company was proud to supply a strong regional Queensland customer with natural gas from its Queensland operations.

"Century Mine generates significant state royalties and export earnings and is a critical project in the Queensland Government's Strategic Blueprint for the North West Minerals Province.

"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.

"Senex also acknowledges APA as an important part of the value chain delivering energy to Mount Isa," Mr Davies said.

This is the tenth major natural gas supply agreement announced by Senex since 2019. Senex has signed more than 75 PJ of agreements with customers including Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.



About Senex Energy Limited:

Senex Energy Ltd (ASX:SXY) (OTCMKTS:VPTOF) (FRA:UDB) is an established, rapidly growing and low-carbon Australian natural gas producer. Our long life Surat Basin assets contribute around 20 petajoules of natural gas per year into the east coast gas market to support our customers. Senex is focused on sustainably delivering balance sheet strength, resilient cashflows, growing dividends to support Australia's energy needs as it transitions to a lower carbon future.



Source:
Senex Energy Limited



Contact:

Ian Davies Managing Director and CEO Senex Energy Ltd Phone: +61 7 3335 9000 Simon Ellinor Chief Financial Officer Senex Energy Ltd Phone: +61 7 3335 9000 Paul Larter Communications Manager Senex Energy Ltd Phone: +61 400 776 937


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