Senex Energy’s million dollar investment doubles Wandoan gas operation

An Australian energy company announced the operation would bring hundreds of jobs as the company drills for more gas. Full details here:

Senex Energy announced The Atlas Gas Pipeline Project on the Western Downs will undergo a $40m expansion doubling in size, as the Australian energy company plans to drill for more gas.

The project currently hosts over 60km of pipelines, a processing facility, and 80 gas wells across 76 sqkm southwest of Wandoan.

Senex Energy’s Project Atlas near Wandoan in the southwest Qld

A Senex Energy spokesman said the company plans to produce 18 petajoules of gas a year (up from 12) from the Maranoa region for the market on Australia’s east coast.

“Senex Energy is set to create 100 construction jobs and support hundreds of manufacturing roles after announcing a 50 per cent expansion of its Atlas domestic gas project near Wandoan,” he said.

“(We) will invest about $15 million in the community as part of the Atlas expansion, as it sources goods and services from local firms wherever possible.

“The natural gas produced by Senex also supports the regional economy and generates royalties for the State Government to support roads, schools and hospitals.”

Senex boss Ian Davies. Pic: Mark Cranitch.

Senex Energy managing director and CEO Ian Davies said the company was on track to deliver material increases in gas sales for manufacturers in the next 12 months.

“Atlas is a high-quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Mr Davies said.

“Senex is a producer that continues to grow its natural gas production in a tightening east coast gas market, supporting the economy and jobs, providing affordable and reliable gas supply for industry as Australia transitions to a lower carbon future.”

Mr Davies said the Atlas expansion project is an example of the low-risk, high-return organic growth opportunities available to Senex with its well established operating model.

“This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performance and well availability continuing to excel,” he said.

Senex documents state the recent $40m investment into the Wandoan project will provide the company’s portfolio with an annual EBITDA of more than $130 million if current gas prices stay strong.

The company plans to start drilling for gas at Wandoan during September 2021, in conjunction with Senex’s operations at the Roma North Project.