Life's a gas for New Century

EMERGING zinc hopeful New Century Resources has struck a A$100 million agreement with Adelaide-based oil and gas giant Santos that should give it certainty of power supply and input costs for its plan to restart operations at the Century mine in Queensland.

Life's a gas for New Century Life's a gas for New Century Life's a gas for New Century Life's a gas for New Century Life's a gas for New Century

The company has locked in a gas supply agreement that ensures nine petajoules of gas will be made available to New Century over the first four years of its planned tailings retreatment campaign.

The contract comes at a time when the east coast markets are gas short and struggling to rebalance after the switching on of the three massive LNG plants at Gladstone in recent years, which are now directing significant amounts of coal seam and conventional gas for export.

Santos will supply the gas from its portfolio of gas fields across Queensland and South Australia directly to a gas-fired power generation plant at Mount Isa. 

It is part of a commitment made to the Commonwealth to ensure gas is made available to Australian industry, made last year in the face o...