Australian LNG players Santos and Origin said they have signed a new agreement for the supply of ethane gas to Qenos, Australia’s sole producer of polyethylene and a supplier of polymers.
Under the agreement, Santos and Origin will supply an estimated 27 petajoules to Qenos for the remainder of 2017 until the end of 2019.
The ethane is processed at the Santos-operated Moomba gas plant and piped to Qenos’ operations at Botany Bay in Sydney for use as a feedstock in the manufacture of polyethylene.
The polyethylene produced by Qenos is used across a range of industries and applications, including consumer and industrial packaging, water conservation, waste management and agriculture.
Santos Chief Executive Kevin Gallagher said he was pleased Santos could continue to provide ethane to the New South Wales manufacturer.
“The Cooper Basin has been supplying ethane to Qenos for over 20 years, and I am delighted we have been able to agree new supply arrangements with the company and reinforce our support for Australia’s manufacturing industry,” he said.
“The agreement also highlights the point that gas is not only a clean, reliable energy source, it is a critical constituent in a range of manufactured products,” he added.