Senex Energy has won the rights to develop a new gas field in the state of Queensland with first gas targeted for 2019.
Queensland offered the acreage in the Surat Basin for free earlier this year on condition it is used to supply the Australian east coast market, which faces a potential shortage from 2019 due to a tripling in gas demand for three liquefied natural gas (LNG) export plants.
Senex was awarded the acreage for nothing following a competitive tender. The high quality acreage contains P50 recoverable gas volumes of 201 PJ1 and is capable of sustaining production rates of more than 30 terajoules per day at plateau.
Senex said it expects to obtain regulatory approvals over the acreage in mid-2018.
Senex Managing Director and CEO Ian Davies said the Company welcomed the opportunity to be part of the solution in delivering new gas supply to domestic customers on the east coast of Australia.
“Senex applauds the proactive steps taken by the Queensland Government to increase the supply of gas for Australia’s east coast. We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, withfirst gas targeted for 2019. This award enables Senex to materially expand its gas business while delivering energy security to domestic customers and opportunities for the local community,” Davies said.