Oil and gas company Senex Energy has signed an agreement with Gladstone Liquefied Natural Gas (GLNG) to supply natural gas from the Roma North processing facility in Australia’s western Surat Basin to the domestic market.
Senex noted that it would market the natural gas, along with higher than expected production volumes from the Atlas project, to east coast gas customers as part of its supply portfolio.
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The firms have agreed to re-direct these volumes to the Wallumbilla natural gas supply hub in Queensland, Australia.
Senex Energy managing director and CEO Ian Davies said: “In October 2018, Senex reached the Final Investment Decision for our $400m capital programme in the Surat Basin. Less than two years later, the transformational Roma North and Atlas natural gas development projects have established Senex as an important producer of gas for the east coast market.
“Today, together with our infrastructure partner Jemena, Senex has successfully constructed 56 terajoules a day of gas processing capacity, drilled 78 wells of the 80 well campaign, built a portfolio of high-quality domestic gas customers, and seen gas production increase rapidly to a current rate of more than 34 terajoules a day.”
Furthermore, Senex has increased its full year production guidance to between 2.0 and 2.1 million barrels of oil equivalent (mmboe), up from the earlier estimate of 1.8 to 2.0mmboe.
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By GlobalDataThe company has also increased its earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to between $45m and $55m, up from the previously earmarked $40m to $50m.
Construction work on the Roma North gas processing facility and an associated pipeline began in November 2018. The contract to build the infrastructure was awarded to Wasco (Australia).
In May last year, Senex Energy commissioned the Roma North natural gas processing facility.
