PERTH (miningweekly.com) – ASX-listed Senex Energy has approved the A$40-million investment into the expansion of natural gas production at its Atlas operation, in Queensland, by 50%.

The company on Tuesday announced that production would be increased from the current output of 12 PJ/y to 18 PJ/y.

Senex MD and CEO Ian Davies said the Atlas expansion project is yet another example of the low-risk, high-return organic growth opportunities available to Senex with its established hub-and-spoke infrastructure operating model.

“Atlas is a high-quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities.

“This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performance and well availability continuing to excel. The Atlas expansion project will inject around A$15-million into regional communities, supporting more than 100 jobs during construction,” Davies said.

The progression of Atlas to 18 PJ/year is the next phase of growth to drive Senex towards its stated annual production target of more than 60 PJ/y by the end of 2025. With development drilling to start in September, Senex is on track to deliver a material increase in gas sales in the next 12 months.

The company is finalising arrangements with energy infrastructure provider Jemena to construct and fund the Atlas processing facility expansion under an extension of existing tolling arrangements with commissioning expected in the first quarter of 2023.

The Queensland government has welcomed the further investment into the Atlas project, with Resources Minister Scott Stewart saying the expansion would create jobs and stimulate the region’s economy as the government continues to implement its strong Covid-19 Economic Recovery Plan.

“Natural gas production is an important part of Queensland’s resources sector, a sector that has supported an average of 76 000 direct jobs through the pandemic.”

Meanwhile, Senex on Tuesday said that it was expected to take a final investment decision on the expansion of the Roma North facilities from the current 9 PJ/y to 18 PJ/y in the coming months.

The company has also started planning a third expansion of the Roma North operation, which is targeting annual production from Roma North at 27 PJ/y, with additional appraisal to be undertaken concurrently.