Published 03-02-2020

PLASTICS MANUFACTURER SECURES ETHANE GAS SUPPLIES

30-01-2020

Sydney-based plastics manufacturer Qenos has secured its on-going supply of ethane gas from South Australian oil and gas companies Santos and Beach Energy as part of a Cooper Basin joint venture. The deal will allow Qenos to maintain its operations at Botany Bay and secure more than 500 manufacturing jobs associated with its New South Wales activities.

Qenos is Australia’s sole manufacturer of polyethylene and a leading supplier of world-class polymers.

The new sales agreement runs until 31st December 2025, and is expected to supply up to 15PJ of ethane per annum.

The ethane required by Qenos is processed via a dedicated facility at the Moomba Gas Plant, operated by Santos on behalf of the SACB joint venture in NE South Australia.

Santos Managing Director and Chief Executive Officer Kevin Gallagher says the company has had a long association with Qenos and is pleased to work together to secure Australian jobs and power Australian industry.

He adds that the company’s proposed Narrabri Gas Project in NSW would put downward pressure on gas prices in the eastern states by bringing gas supplies closer to market.

“Santos is continuing to invest in new natural gas supply for the domestic market around the nation, including in the Cooper Basin where we increased production last year for the second year in a row and drilled a record 115 wells,” says 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 Energy Managing Director Matt Kay adds that he is extremely proud to be involved with a sales agreement that was critical to supporting Australian manufacturing jobs.

“As a proud Australian company, we are a key supplier of natural gas to the domestic market and the Qenos contract again highlights our commitment to local customers,” says Kay.

“Beach will look to build on this in the coming years as we make significant investments in Victoria and South Australia to bring more gas supply to the domestic market. This financial year alone, Beach is spending around $500 million to develop new gas for the east coast market.”

The Qenos Botany site covers 37 hectares in a major chemical and plastics manufacturing area located next to Botany Bay shipping terminal. The three major facilities at Botany – Olefines, Alkathene and Alkatuff – produce ethylene, low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE).

 

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