Senex makes FID on Atlas expansion project
Australia’s Senex Energy on August 17 announced that the final investment decision (FID) has been taken for the A$40mn ($29.3mn) expansion of natural gas production at Atlas project in Queensland by 50% to 18 PJ/year.
The company said it is finalising arrangements with gas infrastructure company Jemena to construct and fund the Atlas processing facility expansion under an extension of existing tolling arrangements, with commissioning expected in Q1 FY23. The drilling programme is expected to begin in September in conjunction with Roma North programme.
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“Atlas is a high-quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Senex CEO Ian Davies said. “This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performance and well availability continuing to excel.”
This investment decision for the Atlas expansion project will take the production capacity of Senex’s portfolio to 27 PJ/year, the company said.
Senex said it has “substantially” contracted its existing gas supply for calendar years 2021 and 2022, with material uncontracted supply from calendar year 2023, “coinciding with a materially tightening southern gas market and increasingly supportive pricing.”
“Senex is a producer that continues to grow its natural gas production in a tightening east coast gas market, supporting the economy and jobs, providing affordable and reliable gas supply for industry as Australia transitions to a lower carbon future,” Davies said.