Senex Energy has made a final investment decision (FID) on a 50 per cent expansion of natural gas production at Roma North in Queensland, with the increase expected to be online in the first quarter of 2022.
With an extensive Surat Basin gas resource position and an established hub-and-spoke infrastructure operating model, the company confirmed it was positioned to contribute to Australia’s recovery from COVID-19.
Senex managing director and chief executive officer Ian Davies said the company had started the 2021 financial year with strong momentum and new investments under way for acceleration of production from its gas reserves in the Surat Basin.
“We announced FID for the expansion of Roma North production by 50 per cent to 24 terajoules a day (TJ/d). This low-cost, high-return and long-life investment is the first example of Senex’s high-quality investment opportunities,” Davies said.
“We also welcomed the Queensland Government’s award of new Atlas acreage, which will increase supply of affordable natural gas to the domestic market. Planning is now under way for a 50 per cent increase in Atlas gas production to 48 TJ/d.”
Under the terms of the Roma North agreement, Jemena will procure and install two additional compression units to increase capacity, having already placed orders for all long-lead items.
Senex will drill up to 15 additional natural gas wells commencing in late 2021, and install gas and water gathering systems and expand the existing Roma North water infrastructure.
The natural gas production from the Roma North expansion will continue to be delivered to Gladstone LNG under a 15-year gas sales agreement.
“Senex and Jemena have proven ability to partner to efficiently deliver natural gas projects, with the Roma North expansion representing our first invent to accelerate development of Senex’s significant Surat Basin natural gas reserves,” Davies said.