SENEX Energy Ltd has announced that Project Atlas achieved first gas sales into the east coast market ahead of schedule, with gas being sold to Queensland power generator CleanCo.
Following start-up of the first two trains of the five-train, 15 PJ/year Project Atlas gas processing facility, production of sales gas is underway.
Gas is being sold to CleanCo, the new Queensland Government-owned corporation focused on delivering affordable clean energy. Under the agreement, Senex has the right to sell initial quantities of gas until June 30, 2020.
Senex is supplying gas at the Wallumbilla Gas Hub in Queensland via the 60km Project Atlas pipeline. Gas is being sold on a fixed-price basis in line with current market levels.
The agreement with CleanCo complements Project Atlas gas sales agreements with CSR and Orora. Gas sales to CSR and Orora will start on January 1, 2020.
Managing director and CEO Ian Davies said Senex has delivered gas from Australia’s first acreage dedicated to domestic supply in what is believed to be record time for a greenfield project.
“With the support of the Queensland Government, Senex has successfully delivered this development within 18 months of grant of the Petroleum Lease. We have achieved this on budget and ahead of schedule, allowing early gas sales to be made to one of our foundation customers, CleanCo.
“We thank our many community and corporate partners for their roles in this significant achievement, including our infrastructure partner Jemena and drilling contractor Easternwell.
“With the processing facility delivering gas, we are focused on completing the initial ~60 well drilling campaign by mid-2020 and ramping up production to an initial plateau of 12 PJ/year by the end of FY21,” Mr Davies said.
Senex has drilled 23 wells of the initial ~60-well Project Atlas campaign, with 15 wells on production following recent connection. Production from these wells is currently above 3 TJ/day during this early stage of the 12 to 18-month ramp-up.