Senex Energy has been named as the preferred tenderer for a Petroleum Lease on land near Miles in the Surat Basin released to supply the domestic market.
Senex managing director and chief executive officer 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.
“We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, with first gas targeted for 2019,” he said.
“This award enables Senex to materially expand its gas business while delivering energy security to domestic customers and opportunities for the local community. This clear example of our gas strategy in action will create jobs for Queenslanders and value for our shareholders.”
Natural Resources and Mines Minister Dr Anthony Lynham said this tender was a pilot using provisions of resources legislation to direct gas to the domestic market for the first time.
“Securing this Petroleum Lease will open up access to 58 square kilometres of land near Miles. The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already under way,” he said.
“Around 150 jobs are expected to be created and Senex expects to invest over $200 million on wells and infrastructure over the project’s life.
“Importantly this land is adjacent to existing gas infrastructure which will help to fast-track production from wellhead to market.”
Dr Lynham said a second tendering opportunity would shortly be announced for two areas north of Surat in the Bowen and Surat basins.
“We are working to increase supply to the gas market and encouraging new local entrants. I would encourage companies to make their bids to develop these new areas,” Dr Lynham said.