Victoria secures $2 billion in petroleum contracts
Victoria has secured a number of separate long term contracts worth more than $2 billion with the signing of a Declaration of Commitment between purchaser Qenos and suppliers ExxonMobil Australia and BHP Billiton to supply petroleum feedstock to the Qenos Altona plant.
The Victorian Premier, Ted Baillieu, said the commitment was evidence of a strong long term relationship that brings together the competitive advantages of Victoria's petroleum and manufacturing industries.
Ethane is produced by ExxonMobil Australia's and BHP Billiton's oil and gas operations in Bass Strait. LPG is supplied from the Altona refinery. They are supplied as basic raw material known as feedstock to the Altona Qenos plant where they are upgraded into a high-quality, high-density polyethylene, which is one of the world's most widely used plastics.
The Qenos manufacturing processes will also deliver significant environmental benefits from improved production efficiency, reducing both water use and greenhouse gas intensities.
The plastic products developed by Qenos will be used in both domestic and export markets.
Qenos is a subsidiary of China National Bluestar (Group) Co Ltd, a joint venture between ChemChina and The Blackstone Group. Qenos was inducted into the Victorian Manufacturing Hall of Fame in 2011 in recognition of its innovative and sustainable manufacturing solutions.