Senex Energy, an Australian oil and gas exploration and production company, and Jemena, which owns and operates natural gas, electricity, and water infrastructure assets in Australia, have signed agreements to invest AUD140m ($104m) to fast-track gas from Project Atlas to the domestic market by late 2019.
Jemena will build, own and operate a 40 terajoule per day gas processing facility and pipeline to deliver gas from the Project Atlas natural gas acreage in Queensland’s Surat Basin to the Wallumbilla Hub.
The Queensland government awarded the Atlas acreage, located near Miles, to Senex in September 2017. Senex is developing the 58km² block for the Australian domestic gas market.
Senex managing director and CEO Ian Davies said: “We are extremely pleased to be partnering with Jemena to fast-track Project Atlas to provide additional gas volumes into the domestic market.
“Last year we made a commitment to deliver gas to the domestic market by the end of 2019. We are systematically bringing together all the critical elements to do just that.”
This infrastructure will provide a connection from a highly-productive area of the Surat Basin directly into the Wallumbilla Gas Hub. The design of the processing facility also takes into account future expansion for Senex or other third parties in the area to connect and supply into the domestic market.
Davies said: “This $140m investment will not only create new jobs and support the local economy in the Western Downs region, but will result in generating royalties and benefits beyond the region and the State.”
In 2017, the company’s Surat Basin gas projects achieved great milestones. It said that preliminary results from the projects included bringing Phase 2 of the Western Surat Gas Project wells online, with initial gas volumes ahead of expectations.
The company said that results from the Mimas core well also showed good quality coals and excellent permeability.
Senex had said that it will apply the learnings from the Western Surat Gas projects as it establishes the foundations for Project Atlas.