Senex Energy announced Wednesday that first gas production has been achieved at Project Atlas following completion of Jemena's Atlas Gas Pipeline in Queensland, Australia.
(source: Senex Energy)
Jemena reached mechanical completion of the pipeline less than three months after construction began in July. Construction of the Project Atlas gas processing facility is ongoing, with commissioning of the facility and pipeline to begin soon, Senex said.
Senex and Jemena said they continue to achieve all stated milestones for Project Atlas, with first sales gas expected by the end of calendar 2019.
Project Atlas is the first acreage in Australia designated to supply gas to the domestic marketand will supply major Queensland manufacturers.
“Achievement of this latest milestone by Jemena supports Senex in its continuing transformation into an important supplier of natural gas to the east coast market," said Senex Managing Director and CEO Ian Davies. “Project Atlas is supporting both local construction jobs and the manufacturing industry."
“Achievement of this latest milestone by Jemena supports Senex in its continuing transformation into an important supplier of natural gas to the east coast market," said Senex Managing Director and CEO Ian Davies. “Project Atlas is supporting both local construction jobs and the manufacturing industry."
The Atlas Gas Pipeline Project plays an important part in delivering Jemena’s Northern Growth Strategy, which seeks to build an interconnected supply chain of energy delivery assets in northern Australia through targeted acquisitions and greenfield developments.
Senex's Project Atlas drilling campaign commenced in August 2019, and 11 wells of the planned 60-well campaign have now been drilled and completed, the company said. The first four wells were recently brought online and produced gas immediately, it said.
Project Atlas gas will be produced to flare prior to expected commissioning and start-up of the 15 petajoule per annum gas processing facility.
Senex said it has contracted most of its expected gas production volumes in 2020,with more contracts currently under negotiation.
“Senex was granted the petroleum lease for Project Atlas in March 2018. The delivery of a greenfield natural gas development in 18 months is an outstanding achievement, Davies said.
“The remainder of 2019 will be active and exciting as we bring more wells online, commission the gas facility and increase production to meet sales agreements commencing 1 January 2020,” Davies added.
Senex and its partners continue to meet all development milestones for the Project Atlas and Roma North work programs. These will deliver a Surat Basin gas production rate of 18 petajoules per annum by the end of FY21, with low cost expansion options, the company said.
