All gas from Project Atlas in Queensland will be sold to domestic customers. Credit: Gokul Raghu M from Pixabay.

Australia’s Queensland Government has granted environmental approval for the development of Senex Energy’s Project Atlas in the Surat Basin.

The approval comes after Senex Energy received confirmation that it met all federal environmental requirements for the natural gas project.

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Senex Energy noted that these approvals will enable the full development of Project Atlas.

The company secured the project acreage covering a 58km² area near Wandoan and Miles through a competitive tender process in September 2017. All gas produced from the acreage will be sold to the domestic market.

“We will achieve this and more with development drilling to commence shortly and commissioning of our gas facilities by the end of 2019.”

Senex Energy managing director and CEO Ian Davies said: “When Senex was awarded the Project Atlas block by the Queensland government, we committed to delivering the first gas to domestic customers within two years.

“We will achieve this and more with development drilling to commence shortly and commissioning of our gas facilities by the end of 2019, followed by first gas sales to domestic customers.

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“The Queensland government’s policy to introduce more natural gas into the domestic market is far-sighted, innovative and beneficial for both Australian customers and producers.”

The firm is targeting first gas from Project Atlas by the end of this year. The project is expected to involve around 100 wells and associated infrastructure.

Last June, Senex reached an agreement with Australian firm Jemena for access to the domestic gas market.

Under this agreement, Jemena is required to build, own and operate a gas processing facility and pipeline to connect Project Atlas to the existing Darling Downs Pipeline.

With recoverable gas volumes of 201PJ estimated by SRK Consulting, Atlas is expected to achieve production rates of more than 30PJ a day at the plateau.