Senex Energy Ltd., Brisbane, and Melbourne-based infrastructure operator Jemena have made an agreement to join forces to accelerate the proposed Atlas coal seam gas (CSG) project in the Surat basin of southeast Queensland to deliver gas to the domestic market by late 2019.
Under the agreement Jemena will build, own, and operate a gas processing facility with an initial capacity of 40 terajoules/day and a 60-km pipeline to connect with the existing Darling Downs pipeline and transport gas from the project Atlas fields to the Wallumbilla gas hub near Roma.
Jemena will fully fund the downstream infrastructure expected to cost about $140 million (Aus.).
Senex will deliver raw gas to the downstream infrastructure, paying a tariff to Jemena for about 220 petajoules of firm capacity for 25 years.
Senex said the transaction delivers a material component of the company’s overall funding requirement and it is on track to finalize the remaining corporate and development financing for Project Atlas in midyear. Once that is in place, Senex will engage with potential domestic gas customers in Queensland and the wider eastern Australian region.
The design of the Jemena processing facility also contemplates future expansion for Senex or for input from third-party gas suppliers in the region.