Sup­ply for do­mes­tic mar­ket

Chinchilla News - - FRONT PAGE - Brooke Dun­can Brooke.Dun­can@chin­

DO­MES­TIC-only gas pro­duc­tion is set to be­gin just 20km from Wan­doan by the end of next year.

Gas com­pany Senex gained a petroleum lease in the Su­rat Basin at the end of March, al­low­ing it to pro­duce gas at its Project At­las site for the Aus­tralian mar­ket only.

It comes after Senex won a pi­lot ten­der last year, with the State Gov­ern­ment re­quir­ing gas to be sold and used only in Aus­tralia.

En­ergy Min­is­ter An­thony Lyn­ham said since be­ing awarded the ten­der, Senex had been working to ob­tain the reg­u­la­tory ap­provals to start pro­duc­tion.

“Con­struc­tion work can now be­gin on the wells and pipe­lines needed to pump up to 26 peta­joules per year of ad­di­tional gas into the do­mes­tic mar­ket,” Dr Lyn­ham said.

“This means do­mes­tic gas and re­gional in­vest­ment and up to 150 re­gional jobs.”

Senex man­ag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer Ian Davies said ob­tain­ing the lease meant the com­pany was on track to de­liver gas to the do­mes­tic mar­ket in late 2019.

“It’s an ex­cit­ing step for­ward,” Mr Davies said.

“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.”

Western Downs Re­gional Coun­cil mayor Paul McVeigh said the coun­cil was sup­port­ive of in­vest­ment that “brings jobs to our re­gion”.

“The re­cent an­nounce­ment of Senex’s petroleum lease in the Su­rat Basin will fur­ther add to the diver­sity of our econ­omy and cre­ate jobs in our re­gion,” Cr McVeigh said.

“The Western Downs has one of the low­est un­em­ploy­ment rates in re­gional Queens­land, and the en­ergy sec­tor is a key con­trib­u­tor to work op­por­tu­ni­ties here in our back­yard.”

“The en­ergy sec­tor on the Western Downs is made up of coal, gas, ethanol, wind and so­lar, and it’s our diver­sity that is our strength.”

The an­nounce­ment comes after two other Aus­tralian pro­duc­ers, Cen­tral Petroleum and Ar­mour En­ergy, won ten­ders to be­gin ex­plor­ing for gas for the Aus­tralian mar­ket at the start of March.

The two pro­duc­ers are set to ex­plore a to­tal of al­most 400ha out­side Miles and Su­rat.

(It) will fur­ther add to the diver­sity of our econ­omy.

— Cr Paul McVeigh


DO­MES­TIC SUP­PLY: Senex has been awarded a petroleum lease for do­mes­tic-only pro­duc­tion.

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