Senex Energy’s Project Atlas near Wandoan has started selling gas ahead of schedule, with Queensland power generator CleanCo among the first customers.

The first two trains are online for the five-train, 15 PJ/year gas processing facility, which is supplying gas at the Wallumbilla Gas Hub via Jemena’s 60km $140 million Project Atlas pipeline.

Senex managing director and chief executive officer Ian Davies said the company had delivered gas from Australia’s first acreage dedicated to domestic supply in what was 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,” he said.

“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.”

Mr Davies said Senex was now focused on completing the initial drilling campaign of about 60 wells by mid-2020 and ramping up production to an initial plateau of 12 PJ/year by the end of the next financial year.

‘Gold medal’ result in domestic gas push

The petroleum lease for the Atlas acreage was granted to Senex in March 2018 part of a Queensland Government policy to increase the supply of natural gas to the domestic market.

Mines and Energy Minister Dr Anthony Lynham said the energy and resources milestone was underpinning manufacturing jobs and businesses and the state’s reliable, lower-cost electricity supply.

“This is a gold medal result from the Palaszczuk Government’s ground-breaking move to release land two years ago exclusively for gas for the domestic market,” Dr Lynham said.

Atlas is supplying natural gas to CleanCo’s Swanbank E gas-fired power station near Ipswich from today.

From January 1 the operation will supply CSR, which makes PGH bricks, Gyprock plasterboard and Bradford insulation at its southside Brisbane plants. It will also supply the packaging company Orora and glass manufacturer O-I.

Part of larger growth picture for Jemena

Jemena managing director Frank Tudor said the Senex-Jemena partnership demonstrated how the gas industry was responding to demand for additional gas for the domestic market.

Mr Tudor said the Atlas Gas Pipeline formed part of Jemena’s broader Northern Growth Strategy which seeks to build an interconnected network of pipeline assets across the country’s north in order to bring new gas to market via the most direct and efficient routes available.

The strategy commenced with the completion of the $800 million Northern Gas Pipeline in 2018, and was extended in July this year when Jemena revealed its proposed pipeline route for the Galilee Gas Pipeline.