Senex Gets OK for Australia-Only Gas Project
Senex Energy, the first company to be released gas land in Queensland with domestic sale-only conditions, has been given the all-clear to begin construction work and should be able to produce gas next year, the Queensland Government said March 29.
“Since being awarded the tender, Senex has been working to obtain the regulatory approvals to commence gas production,” the state’s natural resources, mines and energy minister Anthony Lynham said.
“Construction work can now begin on the wells and pipelines needed to pump up to 26 petajoules (694mn m3) per year of additional gas into the domestic market,” he said.
Senex won the pilot tender last year as the state’s Labor Government used legislative powers to require the gas to be sold and consumed in Australia only. Queensland is a major exporter of LNG but it, and other states on the eastern seaboard, have faced warnings of short supply.
Senex CEO Ian Davies said that reaching this step in the project schedule ensures the company is on track to deliver first gas to the domestic market in late 2019.
“The direct award of this Petroleum Lease is an innovative solution by the Queensland Government to help address the shortage of east coast gas and the quick turnaround of our application shows its continued commitment,” he said.
Since Senex won its tender, two other Australian producers – Central Petroleum and Armour Energy – have won a further tender to explore for gas exclusively for the Australian market. They will explore a total of almost 400 hectares just north of the townships of Miles and Surat in south-west Queensland.
“In Queensland we continue to do the heavy lifting to meet the gas supply needs of Australia’s east coast,” minister Lynham said: “I see no reason why other mainland states cannot follow our lead to help secure a sustainable gas industry, including a stable domestic supply."