Oz Senex, Jemena Close Roma North Deal
Australian oil and gas explorer Senex Energy has completed the sale of its Roma North gas processing facility and pipeline to energy infrastructure operator Jemena for A$50mn (US$34mn), it said September 13. The deal was announced in June this year.
“Following successful commissioning and performance testing, Jemena has taken ownership of the facility and will compress and transport Senex’s natural gas to market under a long-term gas tolling arrangement,” the company said. Senex began construction of the Roma North gas processing facility and pipeline in November 2018.
The completed facility comprises four gas compressors providing approximately 16 terajoules/day (15mn ft3/day) of initial gas processing capacity, a dehydration unit to remove water from the gas and a 5.6km pipeline connection to the Comet Ridge to Wallumbilla Pipeline. The initial capacity can be expanded to about 24 TJ/day, with potential for a further doubling of capacity up to approximately 48 TJ/day.
Senex CEO Ian Davies said completion of the transaction continued to de-risk Senex’s Western Surat natural gas developments. “Senex’s broad natural gas development capabilities have been confirmed again at Roma North by construction and commissioning of the gas processing facility and pipeline to schedule and on budget.”
“This transaction allows Senex to focus on its core competency of developing natural gas acreage while also benefiting from long-term tolling arrangements with flexible expansion options. We are also pleased to have strengthened our relationship with Jemena as we work together to deliver more natural gas to the east coast market,” he said.
Senex has already partnered Jemena for the Atlas Gas Processing Plant and Pipeline (AGPP), connecting Senex’s Atlas gas field in the Surat Basin in southeast Queensland with Jemena's Darling Downs pipeline and the Wallumbilla gas hub – the largest gas hub in the country.