The boss of Australia’s largest brick making company, Brickworks, says a new 11-year gas supply deal with Santos from 2025 has been struck at a higher price than a previous five-year agreement but still enables the company to make a profit from the 500 million bricks it makes every year.
The Santos deal is understood to be priced at around $12 a gigajoule, within the broad range cited by the competition watchdog as reasonable and well below recent price offers cited by some manufacturers of $35/GJ or more.
Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
