Senex se­cures Su­rat gas ten­der

Over the next two years, Senex plans to in­vest more than $200 mil­lion to drill about 100 wells and build sup­port­ing in­fra­struc­ture.

The Australian Energy Review - - NEWS - EL­IZ­A­BETH FABRI

SENEX En­ergy has se­cured rights to de­velop a new petroleum lease in the Su­rat Basin, QLD, that will pro­duce gas for do­mes­tic con­sump­tion from as early as 2019.

Within a highly prospec­tive ten­e­ment near Miles, the 58sqkm coal seam gas acreage was awarded as part of the QLD Govern­ment’s do­mes­tic gas pi­lot project an­nounced ear­lier this year amid nar­row­ing east coast gas sup­ply.

The acreage is be­lieved to con­tain P50 re­cov­er­able gas vol­umes of 201 peta­joules (PJ) and is ca­pa­ble of sus­tain­ing pro­duc­tion rates of more than 30 ter­a­joules per day at plateau.

Over the next two years, Senex plans to in­vest more than $200 mil­lion to drill about 100 wells and build sup­port­ing in­fra­struc­ture, and will be­gin en­gag­ing with do­mes­tic cus­tomers in 2018.

Senex man­ag­ing direc­tor Ian Davies ap­plauded the State Govern­ment’s steps to in­crease the sup­ply of gas for the east coast, and wel­comed the op­por­tu­nity to be part of the so­lu­tion.

“With ex­ten­sive ex­pe­ri­ence and a proven track record, Senex has been en­trusted to de­liver this im­por­tant en­ergy re­source to mar­ket,” Mr Davies said.

“This award en­ables Senex to ma­te­ri­ally ex­pand its gas busi­ness while de­liv­er­ing en­ergy se­cu­rity to do­mes­tic cus­tomers and op­por­tu­ni­ties for the lo­cal com­mu­nity.”

State Nat­u­ral Re­sources and Mines min­is­ter Dr An­thony Lyn­ham said QLD was “lead­ing the na­tion” with prac­ti­cal mea­sures to in­crease do­mes­tic gas sup­plies that sup­port lo­cal jobs.

“Around 150 jobs are ex­pected to be cre­ated, [and] im­por­tantly this land is ad­ja­cent to ex­ist­ing gas in­fra­struc­ture which will help to fast-track pro­duc­tion from well­head to mar­ket,” Dr Lyn­ham said.

“Senex must now ne­go­ti­ate land ac­cess agree­ments and ful­fil all ex­ist­ing en­vi­ron­men­tal and Na­tive Ti­tle re­quire­ments be­fore the Petroleum Lease is granted and work can be­gin.”

Aus­tralian Petroleum Pro­duc­tion & Ex­plo­ration As­so­ci­a­tion (APPEA) QLD direc­tor Rhys Turner said the ten­der was fur­ther ev­i­dence the State was do­ing the heavy lift­ing in bring­ing more gas to the mar­ket.

“While other states dither or, worse, lock-up ur­gently needed gas re­sources, Queens­land is get­ting on with the job,” Mr Turner said.

“The State Govern­ment recog­nises that the only way to put down­ward pres­sure on prices is to in­crease sup­ply.”

QLD Re­sources Coun­cil chief ex­ec­u­tive Ian Mac­far­lane also wel­comed the news.

“This demon­strates Queens­land is get­ting on with the job of open­ing up new gas sup­plies while politi­cal in­ter­fer­ence in New South Wales and Vic­to­ria has com­pletely stalled gas ex­plo­ration,” Mr Mac­far­lane said.

A day fol­low­ing the an­nounce­ment, Dr Lyn­ham opened up a sec­ond ten­der­ing op­por­tu­nity for 395sqkm of land in the Su­rat and Bowen basins, with en­tries clos­ing on 8 De­cem­ber.

“I would en­cour­age com­pa­nies to make their bids to de­velop th­ese new ar­eas,” Dr Lyn­ham said.

“I ex­pect to be able to an­nounce the pre­ferred ten­der­ers in the first quar­ter of next year.”

Im­age: Senex.

Senex’ Western Su­rat Gas Project in Queens­land.

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