https://www.miningweekly.com

Senex signs A$50m deal over Roma North

17th June 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

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.”

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION