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Queensland hits peak production
Queensland hits peak production amid pandemic
Queensland’s energy sector has continued to operate and employ people through the country’s most difficult days. The most recent data shows Australia’s resource and energy export earnings are estimated to have reached an all-time high, despite the impact of the COVID-19 pandemic.
It’s been a busy few months for Queensland. The state made Australian history in July 2021 when Brisbane was selected to host the 2032 Olympics, while major infrastructure works like the Cross River Rail have commenced in anticipation for the mega event and to stimulate local economic recovery.
New investment in energy continues to support jobs across regional Queensland and will remain a key driver in economic bounceback post COVID-19. The petroleum industry in the state now exceeds $1 billion in production value, with significant potential for further developments in both exploration and production of LNG and CSG.
Onshore gas is now the state’s second largest commodity export with two basins currently producing CSG – the Bowen and Surat basins.
This year has seen significant expansions to major processing facilities, final investment decisions (FIDs) made on groundbreaking projects, and gas acquisitions by Queenslandlisted energy companies.
Roma North processing facility works complete
The Roma North Gas Processing Facility expansion is now complete with Jemena and its project partners finalising testing at the site in August 2021. Upgrades to the facility, which cost $15 million, have increased processing capacity by 50 per cent, in line with increasing production from Senex’s Roma North gas field.
Jemena is set to transfer gas from the facility on behalf of Senex to customer GLNG, with Queensland-based Wasco Australia awarded the construction contract for the project. Wasco Managing Director Mel Whyte called it “fantastic” to see contracts like this awarded to local businesses.
Roma North is also supporting the regional economy and generating royalties for the state government to provide and maintain roads, schools and hospitals. The region is expected to produce important natural gas supplies for the east coast market for the next 30 years.
Senex makes FID on Atlas
In August, Senex announced an FID on the $40 million expansion of the Atlas project. Atlas is the first natural gas acreage in Australia dedicated solely to domestic supply, located 20 km southwest of Wandoan in the Surat Basin.
Expansion of the project will result in a 50 per cent production increase, from 12 to 18 PJ/year. Senex Managing Director and CEO Ian Davies says the Atlas expansion project is a low-risk, high-return growth opportunity for Senex to support increased domestic natural gas supply.
“This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performances and well availability to continue to excel,” he says.
The company says this progression is the next phase of growth to drive Senex towards its annual production target of more than 60 PJ/year by the end of the 2025 financial year.
Comet Ridge increases interest in Mahalo
Comet Ridge has entered into a binding agreement to acquire Australia Pacific LNG (APLNG) interests in Mahalo, taking the company’s stake from 40 to 70 per cent. Mahalo, located in the Denison Trough area of Queensland’s Bowen Basin, is a highly appraised gas field with more than 20 wells.
Comet Ridge has executed a funding agreement with continuing Mahalo joint venture (JV) partner Santos. Payment – which will be $12 million in upfront considerations – is fully funded in loans from Santos and will be payable to APLNG at completion of the acquisition.
Comet Ridge Managing Director Tor McCaul says the transactions established a streamlined JV with Santos, not only to progress development plans for the Mahalo Gas Project, but also for the whole gas hub area. The Mahalo Gas Hub area, he stated, has the potential to become a significant supplier of gas to the east coast market.
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