Senex is investing more than A$1 billion to expand its Atlas and Roma North natural gas developments in Queensland’s Surat Basin. More than two-thirds of the capital will be invested on gas infrastructure and wells over the next 2 years.
The investment was made possible by Senex’s owners, POSCO International Corporation and Hancock Energy Corporation. The companies’ funding will allow Senex to triple its natural gas production to 60 petajoules a year by 2025.
Senex’s investment is expected to create more than 200 jobs during construction and another 50 permanent roles. It is also expected to inject more than A$200 million into local businesses and regional areas.
New investment to support Australia’s energy security
Senex began supplying the east coast market 3 years ago. The company has already invested more than half a billion dollars in new gas supply in Australia. It has signed around 90 PJ of term agreements and long-term Gas Sales Agreements. Customers include Visy, CSR, Orora, Adbri, Southern Oil Refining and CleanCo. Senex will seek Expressions of Interest for the supply of gas from its new investment.
‘This new investment to significantly boost domestic natural gas supply supports Australia’s energy security,’ says Senex CEO Ian Davies.
‘The recent electricity crisis proved natural gas is critical to providing secure and reliable energy for Australians. It is needed to underpin renewables and replace aging coal generation, without which electricity costs will further rise, while infrastructure and technology is developed to support increased renewable generation.’
Senex is working with the Australian and state governments to finalise regulatory approvals. The company expects the first gas from the investment to reach the domestic market in 2 years.