PERTH (miningweekly.com) – Gas developer Senex Energy has struck a A$50-million infrastructure deal with energy infrastructure operator Jemena under which it will divest of its Roma North processing facility and pipeline.
Under the terms of the agreement, Jemena will take ownership of the facility and pipeline on the achievement of an agreed-upon performance test, which will likely be completed by September.
The infrastructure operator will then process and transport natural gas from Senex’s western Surat developments to market under a long-term gas tolling agreement.
The gas tolling agreement provides firm capacity service to Senex, with the ASX-listed company to pay a capacity-based tariff to Jemena in accordance with an agreed production profile. The agreement will have an initial 6 PJ/y production capacity, with provision to low cost expand to up to 9 PJ/y.
Provisions were also made for further processing capacity expansion up to the designed site capacity of 18 PJ/y. The contract will run for an initial 21-year term, ending in December 2040, with the option to extend a further ten years.
On completion of the agreement, Jamena will own and operate the gas processing facilities at both of Senex’s Roma North and Project Atlas projects, with the proceeds from the sale supporting the continued development of the company’s Surat Basin natural gas developments, and other growth projects.
Senex started the construction of the Roma North gas processing facility and pipeline in November of last year, and construction was completed on time and budget, with commissioning currently under way.
Senex CEO and MD Ian Davies on Monday said that the rationale for the agreement was compelling for both companies.
“We are pleased to be developing Senex’s significant upstream natural gas acreage position alongside Jemena, a world-class operator of downstream infrastructure.
“With low-cost expansion options designed into the facility and very competitive long-term tariff arrangements, this transaction will accelerate efficient recovery of Senex’s material gas reserves from Roma North and the broader Western Surat acreage.”