CSR secures new Queensland gas supply

Building products manufacturer CSR (ASX: CSR) has secured the first domestic gas supply deal from Queensland’s new Project Atlas natural gas development.

The contract, with Atlas’ developer Senex Energy (ASX: SXY), will secure 260 jobs and production at three CSR factories making PGH bricks, Gyprock plasterboard and Bradford insulation.

Under the initial three year agreement, Senex will supply CSR Building Products with 0.65 PJ of gas a year commencing in January 2020.

The contract can be extended by a further two years.

Since the completion of three LNG export plants at Gladstone, eastern states manufacturers have had difficulties securing long term gas supply contracts at any price.

Gas will be supplied to CSR at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.

Senex CEO, Ian Davies said the company was proud to support local manufacturing jobs and investment.

Davies said: “Senex’s initial gas marketing focus is to partner with domestic commercial and industrial customers for long-term, enduring and mutually beneficial relationships.

“The agreement with CSR follow’s the Queensland Government’s policy to support new supplies of natural gas into the domestic market and this is a great outcome for Queensland.”

Davies said the contract was part of a transformational year for Senex as it delivered its Queensland gas development projects.

Picture: PGH Bricks

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