Gas producer Senex has secured its first supply contract for its Project Atlas pipeline, with south-east Queensland manufacturer CSR Limited set to use the gas at its three manufacturing plants.
Under the three-year agreement, announced on Wednesday, Senex will use Project Atlas to supply CSR Building Products Limited with 0.65 petajoules of gas a year, starting from January 1, 2020.
Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current market levels, indexed annually.
CSR will have the option to extend the agreement by up to a further two years.
Managing director and CEO Ian Davies said Senex was proud to support local manufacturing, jobs and investment.
"We're delighted to secure CSR as a customer and support this key Queensland manufacturer of essential building products," he said.
"Senex's initial gas marketing focus is to partner directly with domestic commercial and industrial customers for long-term, enduring and mutually beneficial relationships.
"This gas sales agreement is one of many milestones to come as we deliver our east coast gas development project."
Mines and energy minister Anthony Lynham said it was the outcome the Queensland government had been hoping for when it made the land available for development of domestic-only gas.
"Manufacturers need gas as a feedstock and an energy source and Australia has a shortage of gas in the east coast market," Dr Lynham said.
"This contract is the culmination of the heavy lifting Queensland has been doing on gas policy and production for some time.
"Soon we will have Queensland petroleum resources directly fuelling more Queensland business and jobs.
"Supporting the manufacturing industry means supporting jobs.
Gas from Senex's wells will be compressed at a Jemena processing plant, transported in a pipeline to Wallumbilla, and onward to market.
Jemena also has a 622-kilometre pipeline bringing an additional 90 terajoules per day into Australia's east coast gas network via Mount Isa.