Photo by: Bloomberg
PERTH (miningweekly.com) – First gas has been produced at Project Atlas, marking another major achievement just days after a 60-km pipeline linking the natural gas project to the Walumbilla Hub, was completed.
ASX-listed Senex Energy in August this year launched a drilling campaign at Project Atlas, and 11 wells of the 60-sell campaign have now been drilled and completed. The first four of these wells have been brought online and have produced gas immediately.
MD and CEO Ian Davies on Tuesday noted that construction of the 40 Tj/d gas facility was now nearing completion, and prior to commissioning and start-up during this quarter, Project Atlas gas will be produced to flare.
“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 on January 1,” he said.
Natural gas from Project Atlas will be supplied to major Queensland manufacturers, with Senex having contracted most of the expected gas volumes in 2020, with more contracts currently under negotiation.
The Queensland Resources Council has welcomed the first gas production, with CEO Ian Macfarlane saying it was a testament to the diversity of Queensland's gas industry and getting the state government's policy settings to promote development of gas in Queensland for Queensland use.
"Queensland has both large and small producers such as Senex supplying gas which allows all gas fields to be developed. Everyone benefits when we develop our gas responsibly," Macfarlane said.
“This project vindicates the government’s decision to release land specifically for developing gas for the domestic market but sadly Queensland continues to do all the heavy lifting to provide extra gas for the eastern Australian market.”