Wandoan gas project to boost domestic gas output
THE CSG company revealed that a new agreement has been put in place to expand their gas supply.
Chinchilla
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SENEX today announced a further one-year agreement to supply natural gas to the Queensland Government power generator CleanCo.
Under the agreement starting January 1 2020, Senex will supply CleanCo with 2.55 petajoules (PJ) of natural gas from their natural gas development project Atlas near Wandoan.
Atlas gas will fuel Swanbank E, CleanCo’s highly efficient 385 MW gas-fired power station near Ipswich in southeast Queensland.
Atlas was Australia’s first natural gas acreage dedicated to domestic supply, and the agreement follows on from CleanCo being Atlas’s first gas customer late last year.
Managing Director and CEO Ian Davies said Senex is proud to be helping power homes and businesses throughout Queensland with cleaner energy.
“The increase in supply of Atlas gas to CleanCo is a great outcome for Queensland, enabled by the State Government’s policy to support the domestic market,” he said.
“Senex is continuing to negotiate gas sales agreements that will support jobs and regional economies as we partner with commercial and industrial customers for long-term and mutually beneficial relationships.
“As strong demand for domestic gas supply continues, new gas sales agreements are being negotiated to further de-risk future Atlas revenue streams and strengthen overall business resilience.”
Senex has contracted more than 35 PJ of natural gas from Atlas (including potential contract volume expansions and term extensions).
Atlas gas production for calendar year 2020 is fully contracted and 2021 expected production is more than 70% contracted.
Senex has drilled 39 wells of the 50-well Atlas campaign, with Atlas gas production continuing to perform strongly at ~14 TJ/day.
Total daily Surat Basin gas production is above 32 TJ and continues to increase towards initial nameplate capacity of 48 TJ/day (about 18 PJ/year).
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