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Senex forms Wallumbilla gas agreement with Alinta

Senex Energy has secured a domestic gas sales agreement with wholesaler and retailer Alinta Energy for up to two years.

Under the agreement, which is effective from January 1, 2021, Senex will supply four petrajoules (4PJ) of natural gas to Alinta Energy, Australia’s fourth largest energy retailer. The gas will be provided at the Wallumbilla gas hub in Queensland at current term contract levels.

Senex’s managing director and CEO Ian Davies said the company was proud to supply Alinta. The gas supply, he said, would support the powering of homes, manufacturers and jobs in Queensland.

“Senex continues to work with potential customers to supply natural gas that will support Australia’s gas-led recovery and creation of sustainable jobs for Queenslanders,” Davies said.

“Alinta Energy adds to our growing portfolio of domestic commercial and industrial customers, including CSR, Orora, Visy Glass, CleanCo Queensland and Southern Oil Refining.

“These long-term and mutually beneficial relationships reinforce Senex’s importance as a material supplier of natural gas to the east coast market.”

Senex has an extensive range of natural gas operations in Queensland, including a holding of 2000 square kilometres (sq km) of gas acreage in the Surat Basin, in southeast Queensland.

The company is involved in numerous projects in the basin, including the Roma North processing facility (which Senex administered itself before selling to Jemena in 2019, and which can provide up to 6PJ of gas per year), and as part of the great Western Surat Gas Project, which spans 915km2 of acreage and up to 438PJ of natural gas reserves.

Senex has also been entrusted to oversee the Queensland Government’s first domestic gas acreage tender dedicated to supplying domestic customers.

Project Atlas, which is located 20km southwest of Wandoan, supplies natural gas to generate electricity (the state-owned CleanCo power generator) and assist companies in a variety of manufacturing industries – from brick-making (CSR) to glass packaging (O-I, Orora). There are 144PJ of gas reserves booked in this part of the region which spans 58km2 of acreage.

In addition, Senex has preferred tender status for a second block in the Surat Basin as part of the Queensland Government’s domestic gas acreage tender process.

Project Artemis (named in honour of the Greek goddess of hunting) has large estimated volumes of gas in the Walloon and Permian coals. The 153km2 block is subject to a six-year exploration program, including four years of geological surveying and three wells drilled in FY2022 and FY2023.

Senex is also partnering with the University of Queensland’s Centre for Coal Seam Gas to develop more efficient and economical ways and means of extracting gas  from some parts of the basin, where enormous volumes of natural gas exist in low permeability coal.