Queensland-based oil & gas company Senex Energy in its recent announcement has unveiled that it has partnered with the infrastructure group Jemena to develop a gas processing facility and deliver gas from its Atlas project to the domestic market by the year end of 2019.
Under the terms of the partnership agreement, Jemena will own, build, an operate the gas processing facility with an initial capacity of 40 terajoules/day and a 60-kilometer pipeline to process and transport gas from its Project Atlas. Jemena is also expected to fund the required A$ 140 million capital to commission and construct the facility. While Senex will deliver raw gas into the downstream infrastructure, Jemena will be delivering sales specification gas into the Wallumbilla gas hub, at more than one delivery stations.
Sources cite that Senex is also poised to pay an agreed tariff for the delivery of sales gas to the domestic customers over the 25-year term.
For the record, the new gas facility will link the Senex’s Atlas gas field in the Surat Basin to Jemena’s Darling Downs pipeline & Australia’s major gas hub the Wallumbilla.
Ian Davies, MD and CEO of Senex revealed in a company statement that the agreement was an important step toward Project Atlas. He further added that the company is extremely pleased to be teaming up with Jemena to develop the new gas facility. Jamena’s hands on gas infrastructure across the east coast and their involvement in Project Atlas will in turn allow Senex to capitalize on the upstream and deliver gas to the local market.
Reports reveal that the development of this new gas facility with the initial capacity of 40TJ/day will prove equivalent to the daily gas consumption needs of over 1.2 million households in Australia.
The partnership move, according to the industry experts, is another classic example of the industry working in tandem with the government to deliver effective, focused, and fast outcomes.