First gas from this major investment is targeted to deliver a much-needed gas supply to the domestic market within two years, according to Senex.
Gas production of 60 PJ per year represents more than 10 per cent of annual east coast domestic natural gas requirements, around 40 per cent of QLD’s domestic gas requirements, and is equivalent to the electricity used by more than 2.7 million homes each year.
Senex’s CEO Ian Davies said of the investment: “This new investment to significantly boost domestic natural gas supply supports Australia’s energy security and continues to underscore QLD’s position as a reliable energy provider.”
“Senex prides itself on supporting the production of natural gas for the Australian market. It was only three years ago Senex began supplying the east coast market from Queensland’s Surat Basin and to date has already invested more than half a billion dollars in new supply.
“The willingness of our new owners POSCO INTERNATIONAL Corporation and Hancock Energy Corporation to commit significant additional new capital allows Senex to bring critical new gas supply to market – essential for manufacturing, industry, homes, hospitals and electricity generation – beyond which was possible prior to their acquisition of Senex earlier this year,” said Davies.
“The recent electricity crisis proved natural gas is critical to providing secure and reliable energy for Australians and is needed to underpin renewables and replace aging coal generation, without which electricity costs will further rise, while infrastructure and technology is developed to support increased renewable generation.”
Furthermore, Senex’s investment is anticipated to create more 200 jobs during construction and another 50 permanent roles and is expected to inject more than $200 million into local businesses and regional areas.
The investment will put people in work, support businesses and families in the country areas we operate in and provide long-term benefits to QLD with royalties helping to fund hospitals, roads, emergency services and more, as we support Australia’s energy independence and security, explained Davies.
The recent electricity crisis caused by coal supply shortages and generation outages, combined with lower renewable generation and underinvestment in new gas supply since 2015, highlighted the need for more secure, reliable and affordable natural gas supply.
Davies said more than two-thirds of the capital commitment is planned to be invested over the next two years on gas infrastructure and wells at Senex’s Surat Basin developments in western Queensland, providing a major economic boost to regional economies.
“Senex is showing that Queensland is continuing to do the heavy lifting in producing the natural gas that Australia needs to keep the lights on, especially during periods of peak demand in the National Electricity Market when renewables may be unavailable, and coal is becoming increasingly unavailable despite Australia’s reserves,” Davies said.
“We look forward to continuing to work collaboratively with the Australian and Queensland governments to finalise the necessary regulatory approvals for this investment and supplying more gas to market as soon as possible.
“With the necessary regulatory approvals in place, Senex can unlock more gas which Australians need, and create skilled, secure, well-paid jobs for Queensland workers and drive economic growth with this billion-dollar expansion.”
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