PERTH (miningweekly.com) – Oil and gas producer Senex Energy has completed the A$50-million sale of its Roma North processing facility and pipeline to energy infrastructure operator Jemena.
The two companies in June this year struck an agreement under which Jemena will take ownership of the facility and pipeline on the achievement of an agreed-upon performance test.
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 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.
Senex MD and CEO Ian Davies on Friday said that the completion of the transaction continued to de-risk the company’s Western Surat natural gas development.
“Senex’s broad natural gas development capabilities have been confirmed again at Roma North by construction and commissioning of the gas processing facility and pipeline to schedule and on budget.
“This transaction allows Senex to focus on its core competency of developing natural gas acreage while also benefiting from long-term tolling arrangements with flexible expansion options.
“We are also pleased to have strengthened our relationship with Jemena as we work together to deliver more natural gas to the east coast market.”