Senex Energy has sealed a sales deal which will see gas from its Project Atlas development used to manufacture building products in Queensland.
The agreement to provide up to 3.25 petajoules (PJ) of natural gas to south-east Queensland manufacturer CSR Limited represents the first domestic gas contract from Project Atlas, 20km south-west of Wandoan.
CSR will use the gas in its three south-east Queensland manufacturing plants that make PGH bricks, Gyprock plasterboard and Bradford insulation.
The plants employ 260 people at Brendale, Coopers Plains and Oxley.
“This agreement with CSR follows the Queensland Government’s policy to support new supplies of natural gas into the domestic market and this is a great outcome for Queensland,” Senex managing director and chief executive officer Ian Davies said.
“For Senex, 2019 is a transformational year. This gas sales agreement is one of many milestones to come as we deliver our east coast gas development projects.”
Also this week Senex announced it had contracted Easternwell for its Surat Basin drilling program, due to start next month.
It comes after receiving all required state and federal regulatory approvals across Project Atlas and its Roma North project.
“With construction of the gas processing facilities on schedule, and drilling to start in May, Senex is on track to deliver first sales gas from Roma North mid-year and from Project Atlas by the end of 2019,” Mr Davies said.
Project Atlas is on 58sq km of land the Queensland Government granted for domestic-only gas production in March 2018.