Santos, Origin extend gas supply to Quenos

Santos and its joint venture partner Origin Energy extended the ethane gas supply to Quenos for another 5 years.

The extended sales contract, which underlines the criticality of secure gas supply to NSW’s manufacturing sector and broader business community, will enable Qenos to maintain its operations at Botany Bay in Sydney and secure over 300 jobs associated with its NSW activities.

Gas is an essential input for Qenos’ production of polyethylene used across a range of industries and applications including consumer and industrial packaging, water conservation, waste management and agriculture. The gas required by Qenos is processed via a dedicated facility at the Moomba gas plant, operated by Santos in north eastern South Australia.

Santos Vice President Eastern Australia James Baulderstone said the extension of gas supplies to one of the company’s long standing customers highlighted Santos’ commitment to the domestic gas market.

“Natural gas is already a critical energy source for NSW, and its importance will grow in the years ahead, just as demand for gas on Australia’s eastern seaboard dramatically increases with the commencement of LNG exports from Queensland,” said Baulderstone.

Natural gas provides around 45% of the energy requirements of Australia’s manufacturing sector, and Baulderstone believes that this transaction with Qenos highlights that unless NSW can secure future gas supplies, businesses and jobs will be at risk.

Santos analysis estimates over 15,000 industrial jobs in NSW are dependent on gas supply as a critical business input, with many more people employed by companies that use natural gas.

Santos has supplied ethane gas to Qenos since June 1996 via the dedicated Moomba to Sydney Ethane Pipeline. The current supply contract expires on 31 December 2014.

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Press Release; Image: Quenos