News: ORA Australia's Senex Energy to supply gas to Orora from key expansion project

SYDNEY, June 28 (Reuters) - Australian gas producer Senex Energy, controlled by South Korea's Posco International 047050.KS , said on Wednesday it has agreed to supply gas to bottle manufacturer Orora (ORA) in a second deal for an expansion project it shelved last year.

Senex will supply more than 14 petajoules (PJ) of gas over 10 years from January 2025, conditional on the restart of a A$1 billion ($666 million) expansion at its Atlas project in Queensland state, it said in a statement.

The expansion was suspended in December amid uncertainty over pricing after the Australian government proposed to cap wholesale gas prices to keep a lid on soaring energy costs for households and businesses.

The deal with Orora comes after Senex entered a 42 PJ gas supply deal with the country's top power producer AGL Energy (AGL) on June 16 and could ease some concerns of long-term supply gaps for gas on the east coast.

Orora said the gas will be used at its glass manufacturing facility in South Australia state and help cut its greenhouse gas emissions.

Senex did not specify the value of the deal. Senex's owners last August signed off on plans to boost output at Atlas to 60 PJ a year by 2025, before shelving it when the government proposed to require east coast producers to sell gas based on production costs plus a reasonable rate of return.

The resumption of the expansion work at Atlas requires approvals from the federal agreement and regulators. ($1 = 1.5006 Australian dollars)