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Senex Energy has announced a deal to supply up to 2.5 petajoules (PJ) of natural gas to the Northern Oil Refinery near Gladstone.

It follows hot on the heels of news that the major Queensland gas player plans to lift natural gas production from its Atlas project in the Surat Basin by 50 per cent – with Senex expecting to create more than 100 jobs through that development.

Senex says the new gas sales agreement will help Northern Oil Refinery grow its business and support 32 jobs directly and hundreds of jobs indirectly across Queensland.

The Yarwun facility – owned by Southern Oil Refining – will use Atlas natural gas in its oil refining and advanced biofuels production plants.

Under the initial two-and-a-half-year agreement, Senex will supply Northern Oil Refinery with 0.3 PJ of gas a year.

There is a mechanism to extend the supply of gas for a further five years at 0.35 PJ a year, taking the total contract quantity to 2.5 PJ.

“Senex is pleased to be supporting 30 jobs directly and hundreds of jobs indirectly by providing natural gas to our new customer, Northern Oil Refinery and their Gladstone oil recycling plant,” managing director and chief executive officer Ian Davies said.

“This gas sales agreement adds to our existing portfolio of domestic customers with a Queensland presence including CSR, Orora, Visy Glass and
CleanCo Queensland, reinforcing Senex’s importance as a supplier of natural gas to the east coast market.

“Senex is committed to investing for the long-term to unlock both development-ready and exploration opportunities and working with our customers to deliver affordable and sustainable gas supply to the domestic

“It is also critical that customers commit to suppliers, just as Northern Oil Refinery has done, so as to support ongoing investment in upstream gas development.”

The announcement follows the award of new Atlas gas acreage to Senex as part of the Queensland Government’s domestic gas acreage tender process.

Comet Ridge, State Gas and Denison Gas also won tenders to explore areas close to their existing infrastructure to get more gas to market quickly.