On September 27, with the support of the Victorian Government and the China National BlueStar Company, Qenos signed long term feedstock contracts with ExxonMobil Australia and BHP Billiton at the Diaoyutai State Guesthouse. It indicates that Qenos, ExxonMobil Australia and BHP Billiton have entered into long term supply arrangements enabling the creation of significant value by utilising Bass Strait oil and gas resources to produce polyethylene, which is subsequently transformed by the Australian manufacturing industry into high value manufactured goods.
The signing ceremony was in recognition of the 15 year feedstock supply agreements entered by Qenos, ExxonMobil Australia and BHP Billiton. These agreements assist with the $195 million expansion and ongoing sustainability of the Qenos Altona Victoria polyethylene manufacturing operation and extension of the previous supply arrangements.
Qenos Feedstock Signing Ceremony, Beijing
Mr. Ren Jianxin, President of ChemChina, hosted the ceremony and said: “ExxonMobil Australia and BHP Billiton are important long-term partners of Qenos. They greatly support the development of Qenos. The signing of long term feedstock supply agreements will enable us to cooperate more closely and to achieve more fruitful results. The signing also witnesses ChemChina’s support for Qenos’ development as well as the great progress Qenos has made in sustainable development. ”
"The contracts will secure 15 years' supply of feedstock worth more than $2 billion. We add significant value to ethane and LPG to produce polyethylene which is then used to develop a range of high quality plastic products, both domestically and for export," the Chief Executive Officer of Qenos, Jonathan Clancy said.
"This substantial investment in the Australian plastics industry will position Qenos for future growth and development. It means that Qenos has a long term future which is great news for our employees and the broader community," said Clancy.
"This project will increase Altona's manufacturing capacity by 20 per cent ensuring it remains competitive in the global market. For our valued customers, this significant investment will provide benefits through enhanced reliability of supply, coupled with our ability to increase capacity in line with the growth of the Australian polyethylene market, providing a sound base for future growth," added Mr. Clancy.
Victorian Premier Ted Baillieu said: "These contracts are a significant investment in Victoria's economy. It will secure jobs at the Qenos Altona Plant and will create 250 additional jobs during the $195 million expansion of the plant."
The signing ceremony was attended by officials of related departments of SASAC, leaders of ChemChina and Bluestar, officials of the Bank of China, the China Construction Bank and the Industrial and Commercial Bank of China as well as senior representatives of Qenos, ExxonMobil Australia and BHP Billiton, and the Victorian Premier, Ted Baillieu.