Brisbane-based Senex Energy has beaten nearly a dozen competitors for the right to spend $200 million to develop a new Queensland domestic gas acreage tender.
Senex was awarded 58-square-kilometre Surat Basin coal seam gas acreage near Miles by the Queensland Government for Australian domestic gas supply, with estimated P50 recoverable gas volumes of 201 petajoules and around 100 well locations proposed. The project will also create roughly 150 new jobs.
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. As a result, Senex welcomed the opportunity to be part of the solution in delivering new gas supply to domestic customers on the east coast of Australia, said Ian Davies, Senex managing director and CEO.
“We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, with first gas targeted for 2019,” said Davies.
Senex was awarded the acreage for nil consideration following a competitive tender. The high-quality acreage contains P50 recoverable gas volumes of 201 PJ1 and is capable of sustaining production rates of more than 30 terajoules per day at plateau. The gas from the project would be supplied over a 20-year period, supplying up to 20 percent of the current shortfall on the east coast, according to news sources.
Senex expects to obtain regulatory approvals over the acreage in mid-2018.