Senex Energy Ltd has announced the Final Investment Decision (FID) for a $20 million expansion of natural gas production at Roma North project in Queensland by 50% to 24 TJ/day (~9 PJ/year), expected to be online in Q1 FY22.
The capital expenditure will be invested on natural gas wells, gas gathering infrastructure and water management infrastructure, to be funded through existing cash reserves
Leading gas pipeline operator Jemena has revealed it intends to construct and fund Roma North compression facility expansion, with commissioning expected in Q1 FY22
Senex already has an existing 15-year gas sales agreement in place with GLNG for additional volumes at oil-linked gas prices with significant down-side protection
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.
“Senex and Jemena have proven ability 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,” Mr Davies said.
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 also 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.
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.