South Queensland gas producer Senex (ASX:SXY) has signed another domestic deal for its gas, this time with packaging manufacturer Orora (ASX:ORA).

An initial two-year agreement will see Senex supply Orora with 1.1 petajoules (PJ) of gas from January next year, rising to 2.2 PJ in the following year and with a potential six-year extension.

The contract is for a fixed price “in line with current market levels” and indexed annually.

The gas will come from Senex’s ‘Project Atlas’ in the Surat coal seam gas basin, where it’s done a $140m deal with pipeline infrastructure owner Jemena to build a gas processing plant and a connecting line to the Darling Downs pipe.

In Brisbane, the current short-term market price of natural gas this morning was $8.01/GJ, according to Australian Energy Market Operator (AEMO) data.

Private gas supply arrangements, like private power purchasing deals, have started to become more popular as prices for each rise.

Last month Senex signed a 3.25 PJ, three-year contract with a construction subsidiary of CSR (ASX:CSR), while in January Central Petroleum (ASX:CTP) began shipping gas from its fields near Alice Springs to Incitec Pivot (ASX:IPL) on the east coast.

Orora has also signed two wind power purchase deals to supply 80 per cent of its energy needs.

Senex is currently developing the Surat gas field, but is producing oil from the Cooper Basin near the South Australian border, and from Roma North which is also in the Surat Basin. Sales were up 62 per cent in the March quarter.

In more ASX energy news today:

Armour Energy (ASX:AJQ) lifted gas production at its Surat Basin project Kincora to 9.9 terajoules (TJ) a day in the March quarter, up 12.5 per cent. That means it made $7.67m in revenue.
Wollongong Coal (ASX:WLC) produced 50,000 tonnes of the stuff in the March quarter, but its stock remains suspended since ASIC raised concerns over asset valuations in December.
And Nucoal Resources (ASX:NCR) is still chasing the NSW government for cancelling its Hunter Valley coal licence. It’s using methods such as the Australia US Free Trade Agreement (campaigning for compensation on behalf of its US shareholders), and hope the support of One Nation MP Mark Latham might somehow help sway the majority Liberal NSW government.