Project Atlas : Senex Energy draws first gas from Surat Basin gas project

Australian energy company Senex Energy has announced that the AUD 140 million Project Atlas, an onshore coal seam gas project in Surat Basin, Queensland, has produced its first gas.

The Surat Basin gas project involves the production of natural gas from a 58km2 acreage near Wandoan and Miles, which was won by Senex Energy from the Queensland government in September 2017.

In August 2019, Senex Energy started drilling on the Surat Basin acreage and has completed drilling of 11 out of the 60 or so planned wells to be drilled under the coal seam gas project. Earlier in March 2019, the coal seam gas project received environmental approval from the Queensland government after having met all the federal environmental requirements.

First gas from Project Atlas was drawn with the first four wells coming online, said the Australian oil and gas producer.

Project Atlas comprises a 15 petajoules per annum (40 TJ/day) gas processing facility and a 60km buried pipeline that connects it to the Wallumbilla gas hub via the 292km long Darling Downs Pipeline.

In early October, Jemena wrapped up the construction of the pipeline. The Australian energy infrastructure company is on the verge of completing its work associated with the gas processing facility.

Prior to the commissioning and start-up, which is slated for the current quarter, Project Atlas gas will be produced to flare.

The natural gas produced from the coal seam gas project will be supplied to major Queensland manufacturers like Orora, CSR, and O-I. Senex Energy has contracted most of the expected gas production volumes in 2020 and is negotiating some more contracts pertaining to the Surat Basin gas project.

Ian Davies – Managing Director and CEO of Senex Energy said: “Senex was granted the Petroleum Lease for Project Atlas in March 2018. The delivery of a greenfield natural gas development in 18 months is an outstanding achievement.

“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 1 January 2020.”

Apart from the Project Atlas, Senex Energy is working on another Surat Basin gas project in the form of the Roma North natural gas project. Put together, the Queensland gas projects are estimated to annually yield 18 petajoules of gas annually by the end of the financial year 2021, said Senex Energy.