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Senex sells infrastructure to Jemena

In a $50 million deal, Jemena will take possession of the facility and pipeline upon the achievement of agreed performance tests which are due for completion on September this year.

After assuming ownership of the infrastructure, Jemena will process and transport gas from Senex’s Western Surat developments to market under a long-term tolling agreement.

Senex Managing Director and CEO Ian Davies said both companies were working towards brining more gas to Australia’s east coast market.

“We are pleased to be developing Senex’s significant upstream natural gas acreage position alongside Jemena, a world class operator of downstream infrastructure,” he said.

“With low-cost expansion options designed into the facility and very competitive long-term tariff arrangements, this transaction will accelerate efficient recovery of Senex’s material gas reserves from Roma North and the broader Western Surat acreage.”

At the completion of the agreement, Jemena will own operate the gas processing facilities and pipeline infrastructure for both Roma North and Senex’s other Surat Basin endeavour Project Atlas.

The agreement stipulates an initial processing capacity of the Roma North facility of 6 PJ/year, with a provision for expansion to approximately 9 PJ/year at Senex’s option.

The deal will cover an initial term of 21 years ending 31 December 2040, with an option to extend up to 10 years.

Senex estimates the Roma North facility will process 123 PJ of raw gas over the initial term, or 184 PJ if the facility is expanded.

For more information visit the Senex Energy website.

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