Building products company, Brickworks (ASX:BKW) has inked a new five year gas supply agreement with Santos.
Under the deal Brickworks will receive supply of wholesale gas for its Queensland, Victorian and South Australian operations through to the end of 2024.
Brickworks says the arrangement provides its East Coast operations with a flexible source of gas at market competitive and stable long-term prices.
The company says one of the advantages of moving to the wholesale gas market is the flexibility of supply, to enable varying gas demand to accommodate variable brick production.
Shares in Brickworks (ASX:BKW) are trading 0.41 per cent lower to $16.98