What Senex Energy’s $1 billion gas expansion means for Qld

gas, energy prices, energy, oil, senex

Senex Energy will pour $1 billion into the expansion of its Atlas and Roma North natural gas developments in Queensland’s Surat Basin. But what will this mean for Australia?

The expansion will deliver 60 petajoules of natural gas each year to the east coast market from the end of 2025, which represents more than 10 per cent of the region’s domestic gas requirements.

“The expansion will drive a significant boost in natural gas supply for Australia, demonstrating Queensland is continuing to do the heavy lifting for the east coast,” Senex Chief Executive Officer Ian Davies said.

According to Australian Energy Producers, almost one-third of gas consumed in Australia is used in manufacturing, a $100 billion sector which indirectly employs almost 900,000 people.

“Our Australian manufacturing and retail customers can now count on long-term, reliable natural gas supply to flow to factories and households,” Davies said.

“Household names like CSR who make essential goods like plasterboard and bricks will use Senex natural gas as a key energy source in their east coast manufacturing plants over the next decade, ensuring stable jobs and the ability to produce essential building products.

“Other manufacturers like Orora who make glass bottles and Bluescope who make Australian steel will also count on Senex’s gas to make their essential products.

“Gas is an irreplaceable fuel in many manufacturing processes, providing the high-heat and feedstock required to make products that power our modern world.”

It comes at a sensitive time for the market, with Australia’s east coast energy system currently under pressure. Fortunately, Davies is confident that the expansion will help ease those pressures.

“The Federal Government has made it clear that gas is required until 2050 and beyond, and that investment in new gas supply is needed if we are to reach net zero with thriving industries,” he said.

“Current energy system pressures and forecast gas shortfalls in coming years highlight the urgent need for more reliable natural gas supply in our energy system.

“The only real solution to the forecast shortfalls and price pressures is more supply. And that is exactly what Senex is announcing today.”

For Senex, the road to project approval has not been easy. The expansion has been on hold for 18 months as the company went through a length and comprehensive approvals process. With all major approvals in place, the expansion can finally take place.

Subscribe to The Australian Pipeliner for the latest project and industry news.

Send this to a friend