PERTH (miningweekly.com) – Energy major Senex has inked a conditional gas supply agreement with French multinational utility company ENGIE for the supply of 9 PJ of natural gas from its proposed Atlas expansion, in the Queensland’s Surat basin from 2025.
Senex CEO Ian Davies said on Monday Senex’s more than A$1-billion investment in new gas supply was part of a critical safety net for Australian energy consumers during the country’s large scale renewable energy build-out.
“The transition to a cleaner energy future requires natural gas as an essential firming fuel – and that’s what Senex plans to deliver,” Davies said.
“We’ve already seen the success of natural gas as a firming fuel for intermittent renewables in South Australia in enabling the State to reach a high portion of renewables in their energy mix without compromising reliability.
“When the wind doesn’t blow and the sun doesn’t shine, Senex’s natural gas will be there to help keep South Australia’s household’s lights on, factories turning and workers working. Senex is proud to be stepping up and playing its part in supplying Australia with the energy it urgently needs,” Davies said.
Senex in 2022 announced plans to expand its Atlas and Roma North natural gas developments in Queensland which would increase its yearly production to 60 PJ/y, representing more than 10% of yearly east coast gas demand, around 40% of yearly Queensland gas demand and the equivalent of the power used by more than 2.7-million homes.
ENGIE joins fellow South Australian businesses Orora and Liberty Primary Steel Australia in securing gas supply from Senex’s proposed Atlas expansion from January 2025. Packaging major Visy has also struck a 20 PJ/y gas agreement, starting from January 2026 and running for a period of ten years, while steel major BlueScope also struck a similar offtake deal, starting from January 2026.
The new gas agreements are subject to certain conditions precedent and Senex will work with government to satisfy the conditions as soon as possible.