O-I Australia has agreed a domestic gas sales agreement with Senex Energy.
Under the five-year agreement, Senex will supply O-I Australia with 1 PJ of gas a year commencing 1 January 2021 (5 PJ in total).
O-I can also elect to increase the total contract volume by up to an additional 1.1 PJ of gas a year over a 5 year term (up to 5.5 PJ in total) commencing no earlier than 1 January 2022 thereby providing O-I’s Australian East Coast manufacturing plants with additional gas supply certainty.
O-I operates four plants across the east coast of Australia and employs 1050 people.
Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.