Senex Energy today announced it had agreed a new domestic gas supply agreement for up to 17 petajoules (PJ) of natural gas with leading building products manufacturer CSR Limited (ASX: CSR).
Over the decade-long agreement beginning in January 2025, Senex will supply secure and reliable natural gas from its Atlas expansion in Queensland’s Surat Basin for use in CSR’s manufacturing facilities on Australia’s east coast.
Against a backdrop of rising cost and pricing pressures in the construction industry, this deal is an important one for providing energy certainty to a leading building products company.
CSR Managing Director & CEO Julie Coates said natural gas is a key energy source in our manufacturing plants that make well-known building products like GyprockTM plasterboard, BradfordTM insulation and PGHTM bricks.
“Having secure and reliable gas supply for the next decade will ensure stable Australian manufacturing jobs and the ability to produce essential building products,” Ms Coates said.
Senex CEO Ian Davies said Senex was proud to continue its relationship with the important Australian manufacturer of building products.
“We know manufacturers are facing significant challenges in securing gas, and our domestically-focused Atlas expansion is part of the solution to bring new gas supply to market and put downward pressure on prices,” Mr Davies said.
“Having gas for the manufacturing industry is absolutely paramount, and the only way that’s going to stay reliable is for there to be more investment, not less.
“CSR has been on the journey with us from the beginning, signing the first gas contract from our domestic-only Atlas acreage back in 2019.
“Four years on, we’re delighted to have signed another contract that continues this partnership of reliable gas supply through to 2034,” Mr Davies said.
The new gas agreement is subject to certain conditions precedent and Senex will work with Government to satisfy the conditions as soon as possible.
This is the eighth gas supply agreement in recent months, taking total conditional gas sales from Senex’s Atlas expansion to more than 150PJ.
Senex is a world-class supplier of affordable, reliable and secure energy, committed to delivering essential energy for life. The energy we proudly provide is essential to our modern lives and for the thriving communities we serve. Senex is also a critical energy provider to Australia’s manufacturing industry. The energy we supply powers the production of a range of essential goods from bricks to plasterboard to glass bottles. And we are playing our part in the global energy transformation, delivering essential energy for the journey to a cleaner energy future.
CSR Limited (CSR:ASX) is a leading building products company in Australia and New Zealand and is the name behind some of Australia’s most trusted and recognised brands including Gyprock™ plasterboard, Bradford™ insulation, Cemintel™ fibre cement, Hebel® autoclaved aerated concrete panels, PGH™ Bricks, Monier™ rooftiles and AFS walling systems™.