Qenos strikes deal with Santos and Beach

Santos Moomba

Under the new deal, Santos and Beach will supply up to 15 PJ of ethane gas per annum to Qenos for an estimated total of 87 PJ ending on 21 December 2025.

The gas will be processed via a dedicated facility at the Moomba Gas Plant in northeastern South Australia and be supplied to Qenos’ polyethylene plants in Botany, New South Wales.

High domestic gas prices have caused problems for manufacturers on Australia’s east coast over the last few years, and while Qenos CEO Stephen Bell highlighted the importance of contract extension, he noted domestic gas issues were far from over.

“This extension of our Botany ethane supply agreement is a key step towards ensuring that Qenos continues to play an important role in adding value to Australia’s natural resources, as well as contributing to the Australian economy and providing significant direct and indirect employment in the chemistry sector,” he said.

“While this extended ethane supply agreement provides the opportunity for us to operate our Botany facility on a more solid footing, this doesn’t mean the east coast gas problem is solved.

“The significant challenge still remains for Qenos to also secure the supply of 42 PJ of natural gas at a sustainable price over the same period to underpin our manufacturing operations in both NSW and Victoria.”

Mr Bell said projects such as Santos’ planned Narrabri Gas Project would help bring more supply to industry on the east coast.

The $3 billion Narrabri CSG project is yet to approved by the NSW government, but Santos Managing Director and CEO Kevin Gallagher said a green light for the project would help companies like Qenos with their gas needs.

“The only way to put downward pressure on gas prices for NSW customers is to develop new gas supplies closer to market,” said Mr Gallagher.

“Santos’ Narrabri Gas Project would be developed solely for the east coast domestic market and could produce enough gas to supply up to half NSW needs, so it’s vital that the assessment and approval process is completed as soon as possible and, if approved, we will get on with the job of delivering competitively-priced Narrabri gas for NSW households and businesses.”

Beach Managing Director Matt Kay said the Qenos contract was indicative of Beach’s commitment to local customers, with the company spending approximately $500 million this financial year to develop east coast gas.

Qenos has three major facilities at Botany that produce ethylene, low-density polyethylene, linear low-density polyethylene and high-density polyethylene.

For more information visit the Qenos website.

If you have company news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au

Send this to a friend