Senex is set to invest more than $1 billion in a major expansion of its Atlas and Roma North natural gas developments in the Surat Basin.

The company said work planned would begin in coming weeks to increase its natural gas production to
60 petajoules (PJ) per year.

Senex’s investment is expected to create more than 200 jobs during construction as well as 50 permanent roles, and is expected to inject more than $200 million into local businesses and regional areas.

The move is expected to deliver much needed gas supply to the domestic market within two years.

Senex said production of 60 PJ per year represented more than 10 per cent of annual east coast domestic
gas requirements, around 40 per cent of Queensland’s domestic gas requirements, and was equivalent to the electricity used by more than 2.7 million homes each year.

“This new investment to significantly boost domestic natural gas supply supports Australia’s energy security and continues to underscore Queensland’s position as a reliable energy provider,” Senex chief executive officer Ian Davies said.

“Senex prides itself on supporting the production of natural gas for the Australian market. It was only three years ago Senex began supplying the east coast market from Queensland’s Surat Basin and to date has already invested more than half a billion dollars in new supply.

“The willingness of our new owners POSCO INTERNATIONAL Corporation and Hancock Energy Corporation to commit significant additional new capital allows Senex to bring critical new gas supply to market – essential for manufacturing, industry, homes, hospitals and electricity generation
– beyond which was possible prior to their acquisition of Senex earlier this year.

“The recent electricity crisis proved natural gas is critical to providing secure and reliable energy for Australians and is needed to underpin renewables and replace aging coal generation, without which electricity costs will further rise, while infrastructure and technology is developed to support increased renewable generation.”

QRC chief executive Ian Macfarlane said the announcement by Senex underlined the importance of investment in new projects to deliver the gas the East Coast needed to support manufacturing and other types of industry.

“The most effective way to ensure gas consumers have access to affordable and reliable energy to power industry is to increase investments in gas supply and new projects,” he said.

“It’s reassuring to see investors in Queensland gas projects continue to take the lead on new projects that underpin energy security for Australia.

 “Gas will be increasingly important for Australia and our trading partners, as economies make the transition to lower emissions activities and work towards net zero emissions goals.”

Mr Davies said more than two-thirds of the capital commitment was planned to be invested over the next two years on gas infrastructure and wells at Senex’s Surat Basin developments in western Queensland, providing a major economic boost to regional economies.

“Senex is showing that Queensland is continuing to do the heavy lifting in producing the natural gas that Australia needs to keep the lights on, especially during periods of peak demand in the National Electricity Market when renewables may be unavailable, and coal is becoming increasingly unavailable despite Australia’s reserves,” Mr Davies said.

“We look forward to continuing to work collaboratively with the Australian and Queensland governments to finalise the necessary regulatory approvals for this investment, and supplying more gas to market as soon as possible.”