Senex (ASX:SXY) & New Century Resources (ASX:NCZ) agree new gas sales agreement

Highlights

  • Senex has struck a deal with New Century Resources for supplying 7 petajoules of natural gas.
  • The deal is for three years as of now.
  • Since 2019, this is the tenth big natural gas supply deal declared by Senex.

Senex Energy Limited (ASX:SXY) today announced a gas sales agreement with Australian resources company New Century Resources Limited (ASX:NCZ) for the sale of around 7 petajoules (PJ) of natural gas over three years.

New Century holds and operates the Century Mine, situated around 250 kilometres north-west of Mount Isa, Queensland. Currently, New Century has more than 250 employees engaged in the production of zinc concentrates. This company exports 12 smelters on three continents.

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

                     

Why ASX stocks SXY, AC8, PNI, MKR, OSH on investors radar today?

 

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.

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

What is the Company Senex all about?

Senex is a low-carbon Australian natural gas producer. Its Surat Basin assets contribute around 20 petajoules of natural gas per year into the east coast gas market. Senex boasts of consistently working towards supporting Australia’s energy needs as it transitions to a lower carbon future. 

Bottom Line

This looks like Senex is building a yet another strong, long-term and mutually beneficial relationship that will supports jobs and the overall economy to help meet Australia’s energy demand. This is a crucial times for energy sector as the country transitions to a lower carbon future.

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