Major expansion of Surat Basin gas field to produce 100 jobs
Gas producer Senex has given the green light to a $40 million expansion of its Atlas project in the Surat Basin providing support for about 100 jobs and $15 million for the local community.
Senex Energy has struck a 10 year deal with Bluescope (photo: supplied)
Senex expects the decision will put it on track to an EBITDA of $130 million at prevailing prices.
The expansion will also feed into the domestic gas market and has been largely underwritten by the sales deals with metal processor Nyrstar and AdBri.
Senex said the decision will boost Atlas output to 18 petajoules a year and put the company on track to annual production of 60 petajoules a year by the end of 2025.
“With development drilling to start in September, Senex is on track to deliver a material increase in gas sales in the next 12 months,” the company said.
“The investment decision for the Atlas expansion project will take the production capacity of Senex’s portfolio to 27 petajoules a year, realising EBITDA of more than $130 million a year at prevailing prices.”
Managing director Ian Davies said the Atlas expansion was an example of low-risk, high-return organic growth.
“Atlas is a high quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Davies said.
Senex said it was also anticipating a financial investment decision on the expansion of Roma North field in coming months and planning for a third stage expansion had already started with an expectation of producing 27 petajoules a year from the field.
The company was finalising agreements with Jemena to built and fund the Atlas processing facility expansion.
