Senex wins gas tender to supply domestic customers

SENEX Energy plans to invest $200 million in a new gas project in the Surat Basin to supply the growing national energy shortfall.

The State Government yesterday said Brisbanebased Senex had been chosen to supply customers on Aus- tralia’s east coast as part of a domestic gas tender project.

The project, which will create about 150 jobs, will involve the drilling of 100 wells and supporting infrastructure in the gas-rich reserve near Wandoan and Miles.

Senex managing director Ian Davies said the pilot project was a practical solution to providing energy security for businesses and households on the east coast.

Senex already operates the Western Surat Gas Project.

“There is not enough gas being supplied into the domestic market, leading to big price shocks for commercial and industrial users as well as consumers,” Mr Davies said.

The gas from the project would be supplied over a 20year period, supplying up to 20 per cent of the current shortfall on the east coast.

“It is not a silver bullet but every molecule of gas helps with supply,” Mr Davies said.

“In the greater scheme of things, it is not a large amount of gas but I think it will help prices.” Mr Davies said the company planned to sign supply contracts with domestic customers early next year, with the first gas to be supplied in 2019.

The State Government opened tenders for the project earlier this year as gas shortages along Australia’s eastern seaboard forced prices higher for manufacturers and other users.

The win for Senex is a set back to chemical producer Incitec Pivot, which had been hoping to be awarded the tender to supply its Gibson Island plant at Port of Brisbane.

Senex shares rose 5.9 per cent to 27c yesterday.