Queensland's government says its domestic gas policy is helping to power resources projects after Senex Energy announced a deal to supply New Century Resources.
Senex will supply natural gas via APA's Diamantina Power Station in Mount Isa, generating power for the Century zinc mine.
Under the three-year deal beginning from the start of next year, Senex will provide seven petajoules of natural gas to support New Century's processing operations at a fixed price, in line with current market levels.
Senex CEO Ian Davies said the gas came from their Queensland operations which means that it will transported to Mount Isa via the 840km APA Carpentaria Pipeline from Ballera.
"Century Mine generates significant state royalties and export earnings and is a critical project in the Queensland Government's Strategic Blueprint for the North West Minerals Province," Mr Davies said.
"Senex looks forward to building another strong, long-term and mutually beneficial relationship that supports jobs, the economy and helps meet Australia's energy demand as it transitions to a lower carbon future."
Premier Annastacia Palaszczuk said the resources industry continues to play a crucial role in Queensland's economic recovery from COVID-19.
"Our commitment to ensure gas is available for Australian consumers is incredibly important," the Premier said.
"It means businesses like New Century Resources can continue to run their day-to-day zinc mining operations, and also look to expand in the future because they are guaranteed supply from companies like Senex Energy."
Resources Minister Scott Stewart said they released more than 20,000 square kilometres of land for tender exclusively for the domestic market, with 15 tenures granted.
"In 2018, Senex was awarded the first Australian market supply condition tenure, guaranteeing the gas they extract goes to the Australian market," he said.
It's not known how this will affect the proposed CopperString transmission line project as New Century were touted as one of their foundation customers.
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