New $30m gas development near Roma to create 50 jobs
SENEX Energy has announced the Final Investment Decision (FID) to increase its gas production near Roma, 50 per cent.
About 50 construction jobs are set to be created and more than $30 million will be invested in expansion of the natural gas processing facility at the Roma North development, drilling of wells and construction of supporting infrastructure.
The expansion is expected to be finished within the next year.
The announcement comes after Senex said last month it was set to create 100 construction jobs and support hundreds of manufacturing roles after winning a competitive tender for gas acreage that will expand its successful Atlas domestic gas project 50 per cent.
Leading energy infrastructure company Jemena intends to build and fund the expansion of the processing facility at Roma North and has already placed orders for long-lead items.
Senex created 250 construction jobs and invested $400 million in completing the company’s Atlas and Roma North projects in the Surat Basin during the past 18 months, benefiting more than 50 businesses in the region.
The projects are now delivering much‑needed gas to the east coast market, including manufacturing companies and the hundreds of people they employ in Queensland.
The natural gas produced by Senex also supports the regional economy and generates royalties for the State Government to support roads, schools and hospitals.
Senex Managing Director and CEO Ian Davies said the Roma north expansion project is an excellent example of the low-risk, high-return organic growth opportunities available to Senex with its established hub-and-spoke infrastructure operating model.
“This investment follows strong project execution and natural gas production performance at Roma North, with reservoir performance and well availability continuing to excel,” he said.
“Senex and Jemena have proven availability to partner to efficiently deliver natural gas projects, with the Roma North expansion representing our first investment to accelerate development of Senex’s significant Surat Basin natural gas reserves.
“Senex is committed to contributing to Australia’s gas-fired recovery from the COVID-19 recession, with this Roma North expansion project the first example of our high-quality investment opportunities.”
Under the terms of the Roma North agreement, Jemena will procure and install two additional compression units to take capacity to 24 TJ/day (~9 PJ/year), having already placed orders for all long-lead items.
Commissioning of the facility is expected in Q1 FY22.
Senex will drill up to 15 additional natural gas wells commencing in late FY21, install gas and water gathering systems and expand the existing Senex-owned Roma North water infrastructure.
Natural gas production from the Roma North expansion will continue to be delivered to GLNG under the existing 15-year gas sales agreement (GSA).
The GSA provides Senex with oil-linked gas prices, significant downside protection at low oil prices and exposure to a future recovery in oil prices.
As at 30 June 2020, Roma North had booked Proved and Probable (2P) gas reserves of 283 PJ, with an additional 222 petajoules of 2P gas reserves booked in the broader Western Surat acreage.