Australian energy company Santos, along with Origin Energy, has signed an agreement to supply ethane gas to polyethylene producer Qenos.

As per the deal, the companies have agreed to supply around 27 petajoules (PJ) to Qenos between now and the end of 2019.

According to Santos, processing of the ethane will take place at the company-operated Moomba gas plant before being transported to Qenos’ operations at Botany Bay in Sydney for use as a feedstock in the manufacture of polyethylene. 

Santos managing director and CEO Kevin Gallagher said: “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.

"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."

“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.”

Meanwhile, the company declared that it is offering ten-year senior fixed-rate bonds at a value of $800m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Through the proceeds from the offering, the company intends to cut its net debt to $2bn by the end of 2019.

Additionally, Santos, together with its GLNG joint venture partners, agreed to supply 30PJ of gas to the east coast domestic market over the next two years.