Jan 22, 2021

Senex on fast track to further gas growth

Senex on fast track to further gas growth Project Atlas infrastructure in the Surat Basin.

Front end engineering design work has begun for the potential further expansion of Senex Energy’s Roma North and Atlas projects to a rate of 48 TJ/day.

Production across Senex Energy’s existing Surat Gas assets has reached reached 50 TJ/day, or more than 18 PJ/year.

In the company’s latest quarterly report, Senex said its Atlas project was now achieving a daily production rate above 30 TJ and the $30 million project to take Roma North production to 24 TJ/day was on track to come online in the first quarter of FY22.

Senex said it had commenced FEED activities for the expansion of the Roma North acreage to 48 TJ/day with a view to a final investment decision by the first half of FY22.

It is aiming to bring the additional capacity online in the first half of FY23.

“Key activities underway include site selection for an additional gas processing facility, landholder discussions and wells and gathering design,” it said.

“Senex is also considering its approach to construction and ownership of the additional facilities, including another roll out of Senex’s proven modular approach to facilities (supported by debt financing), or awarding a BOO contract to an infrastructure provider.”

In September last year, Senex announced that it had been awarded highly valuable acreage immediately adjacent to its existing Atlas development.

The company said the Atlas acreage award enabled rapid expansion of natural gas production to about 18 PJ/year.

Activities currently underway for a plan to take it out to 48 TJ/day (or about 18 PJ/year) include working with Jemena on FEED and long-lead item planning for the gas processing facility expansion, with a final investment decision targeted for the second half of FY21.

“In addition, the wells and gathering program is currently in FEED. Long lead items are in the process of being procured and execution is targeted for Q4 FY21,” the company said.

“Expansion of the facilities will be dependent on customers committing to term contract volumes.”

Managing director and chief executive officer Ian Davies said Senex had achieved a significant milestone, with natural gas production reaching 50 TJ/day, equivalent to around 10 per cent of Queensland’s natural gas demand.

“This milestone follows another impressive quarter of production and sales revenue growth, the sale of our Cooper Basin business to Beach
Energy for $87.5 million, and the signing of additional domestic gas customer contracts,” he said.

“Looking forward, we continue to aggressively pursue the development of our low-risk high-return organic growth opportunities as we progress towards our FY25 annual production target of 60 PJ/year.

“Our Roma North expansion to 24 TJ/day (about 9 PJ/year) is on track to be online by Q1 FY22, with further production expansions (totalling an
additional about 18 PJ/year) at Roma North and Atlas both within the FEED phase.”