Jemena has signed an agreement with Senex Energy to build, own, and operate the Atlas Gas Processing Plant and Pipeline (AGPP).
The pipeline will connect Senex’s new ‘Atlas’ gasfield in the Surat Basin in south-east Queensland with Jemena’s Darling Downs Pipeline and the Wallumbilla Gas Hub – the largest gas hub in the country.
After a competitive tender process, Jemena was selected as Senex’s preferred partner because it proposed the most cost-effective and direct pathway to the domestic gas market.
Jemena’s solution also leverages the Darling Downs Pipeline, which provides direct access to the Wallumbilla gas hub and offers Senex flexibility to sell its gas to Australian gas customers.
Jemena managing director Paul Adams said the AGPP would provide additional volumes into the domestic market for a range of commercial and industrial gas users.
“The Atlas gasfield is the first of 13 gas exploration tenements awarded by the Queensland Government as part of a broader move to fast-track the development of new gas to the domestic market,” Mr Adams said.
“Jemena will construct the AGPP on an expedited schedule in order to deliver first gas by the end of 2019.”
Jemena will invest around $140 million to build the gas plant and 60km pipeline, which is capable of transporting approximately 40TJs of gas per day.
The AGPP is expected to create around 200 jobs throughout its planning, construction, and commissioning phases.
Mr Adams said the AGPP would build on Jemena’s Northern Growth Strategy to develop an interconnected supply chain of gas infrastructure assets across northern Australia.
“We know there is continued demand for gas across the east coast and that northern Australia will play a leading role in meeting this demand by bringing new gas to where it is most needed, via the most direct and economic route,” he said.
“The AGPP is another crucial addition to our plans in northern Australia and allows us to play a leading role in bringing a new source of gas supply and greater competition to the market.
“We are also continuing work on our Northern Gas Pipeline (NGP), which will initially bring around 90TJs of gas to the east coast, and are now progressing plans to expand and extend the NGP so it can transport around 700TJs of gas – that is enough gas to meet the average daily gas needs of Sydney, Brisbane, and Adelaide combined.”
Mr Adams said the NGP continues to track to schedule with first gas set to flow before the end of the year.