Press

Senex Partners With Jemena to Bring Project Atlas Gas to the Domestic Market in Late 2019


Senex Energy Limited (Senex, ASX: SXY) today announced it has executed agreements with major infrastructure operator Jemena to partner on the accelerated development of Project Atlas.

Key points:

  • Following the successful conclusion of a competitive bid process, Senex has partnered with major infrastructure operator Jemena to deliver first gas to the domestic market by late 2019

  • Jemena will build, own and operate a gas processing facility with an initial capacity of 40 terajoules per day (32 terajoules per day of firm service at plateau) and an approximately 60 kilometre pipeline (the downstream infrastructure) to process and transport gas from Project Atlas via the Darling Downs Pipeline to the Wallumbilla hub

  • Jemena will fund capital expenditure of approximately A$140 million associated with the design, construction and commissioning of the downstream infrastructure

  • Senex will pay an agreed tariff for delivery of sales gas to the domestic market over a 25 year term

Senex Managing Director and CEO Ian Davies said the agreement was an important step forward for Project Atlas.

“We are extremely pleased to be partnering with Jemena to develop Project Atlas. Jemena operates significant gas infrastructure across the east coast and their involvement in Project Atlas will allow us to focus our efforts and capital on the upstream, delivering gas to domestic customers from late 2019.

“This transaction delivers a material component of Senex's overall funding requirement, and we are on track to finalise the remaining corporate and development financing in mid-2018. With our financing in place and our path to market established we will then engage with potential domestic gas customers.

“We are systematically bringing together all the critical elements for a successful project to deliver first gas to the domestic market in 2019 – a major achievement for a greenfield gas development,” he said.

Jemena Managing Director Paul Adams said that Jemena was delighted to have been selected as the infrastructure provider to work alongside Senex to develop Project Atlas.

“We are excited to be partnering with Senex to build strategic infrastructure providing a long-term physical connection from this highly productive area of the Surat Basin directly into the Wallumbilla Gas Hub for the benefit of the east coast domestic gas market,” he said.

The following summarises the agreements between Senex and Jemena:

Agreement details

Downstream infrastructure

  • To comprise a gas processing facility with an initial capacity of 40 terajoules per day (32 terajoules per day of firm capacity, and 8 terajoules per day of reserve capacity) and an approximately 60 kilometre pipeline connecting the facility to the existing Jemena-owned Darling Downs Pipeline, north-east of the Wallumbilla Gas Hub

  • Facility design contemplates expansion capacity for Senex or other third parties

  • Jemena to build, own and operate the downstream infrastructure, to be

    commissioned by late 2019

  • Jemena to fully fund the downstream infrastructure, expected to cost approximately A$140 million

  • Senex to deliver raw gas into the downstream infrastructure, and Jemena to deliver sales specification gas into the Wallumbilla Gas Hub, at multiple delivery points

Tariff structure
  • Senex to pay a tariff to Jemena for approximately 220 petajoules of firm capacity over a term of 25 years

  • Capacity-based tariff payments fixed in-line with an agreed profile (15 year plateau at 32 terajoules per day followed by a diminishing production tail)

  • 32 terajoules per day of firm capacity able to be increased for additional volumes

ABOUT SENEX ENERGY

Senex is an ASX listed oil and gas exploration and production company focused on generating shareholder value by growing reserves and production. It holds extensive onshore oil and gas acreage in the Cooper and Surat Basins, two of Australia's most prolific onshore energy regions. Senex is well capitalised and has built strong operating credentials over its 30 year history. Senex operates low cost oil producing assets in the Cooper Basin and is progressing a portfolio of gas projects including the Western Surat Gas Project and Project Atlas in Queensland

ABOUT JEMENA

Jemena owns and operates a diverse portfolio of energy and water transportation assets across the east coast of Australia. With more than $10.5 billion worth of major utility infrastructure, Jemena supplies millions of households and businesses with these essential services every day.

Figure 1: Location of Project Atlas, Surat Basin Queensland

page3image3690941120


Visit source site

https://tinyurl.com/y98wj3ln

SenexSenex EnergyAustraliaProject AtlasgasJemenaASX

More items from oilvoice


Schlumberger Announces Second-Quarter 2018 Results

Revenue of $8.3 billion increased 6% sequentially Pretax operating income of $1.1 billion increased 12% sequentially Second-quarter GAAP EPS, including charges of $0.12 per share, was $0.31 Second-quarter EPS, excluding charges, was $0.43 Cash flow from operations was $987 million PARIS , J ...

OilVoice Press - OilVoice


Posted 2 days agoPress > ResultsEarningsSchlumberger +1

Baker Hughes, a GE company Announces Second Quarter 2018 Results

Orders of $6.0 billion for the quarter, up 15% sequentially and up 9% year-over-year on a combined business basis* Revenue of $5.5 billion for the quarter, up 3% sequentially and up 2% year-over-year on a combined business basis GAAP operating income of $78 million for the quarter, inc ...

OilVoice Press - OilVoice


Posted 2 days agoPress > ResultsEarningsGE +3

Genel Energy: Receipt of Payment for KRI Oil Exports

Genel Energy plc ('Genel' or 'the Company') notes the announcement from DNO ASA, as operator of the Tawke PSC, that the Tawke partners have received $62.33 million from the Kurdistan Regional Government ('KRG') as payment for April 2018 crude oil deliveries to the export market from the Tawke licen ...

OilVoice Press - OilVoice


Posted 2 days agoPress > Genel EnergyPaymentKRI +8

Delaying Mexico’s 2018 Bidding Rounds is a Smart Move by CNH, Says GlobalData

Following the news (Wednesday 18 th July 2018) that Mexico's hydrocarbons agency re-scheduled bidding rounds 3.2, 3.3, and onshore farm-out round for February 2019, which was originally planned for the second half of 2018, Adrian Lara, Senior Oil and Gas Analyst at GlobalData , a leading ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > GlobalDataMexicoBidding Round +2

Major Utilities Continue to Increase Spending on U.S. Electric Distribution Systems

Source: U.S. Energy Information Administration, Federal Energy Regulatory Commission (FERC) Financial Reports, as accessed by Ventyx Velocity Suite Spending on electricity distribution systems by major U.S. electric utilities—representing about 70% of total U.S. electric load—has risen 54% o ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > United StatesUSEIA +4
All posts from oilvoice