South-west Queensland natural gas from Senex Energy’s Project Atlas will fuel more than 200 Queensland manufacturing jobs in a national first.
Mines and Energy Minister Dr Anthony Lynham today congratulated gas producer Senex on sealing the first supply contract from Project Atlas with south-east Queensland manufacturer CSR Limited.
In an Australian first, Project Atlas in the Surat Basin is delivering Queensland gas quarantined for sale to the Australian market only. Senex expects first gas production later this year.
“This is the outcome the government was seeking when it made this land available for development of domestic-only gas in 2017,” Dr Lynham said.
“Manufacturers need gas as a feedstock and an energy source and Australia has a shortage of gas in the east coast market.
“This contract is the culmination of the heavy lifting Queensland has been doing on gas policy and production for some time.
“Soon we will have Queensland petroleum resources directly fuelling more Queensland business and jobs.
“Supporting the manufacturing industry means supporting jobs.
“Almost 185,000 jobs have been created in Queensland since January 2015 and the Palaszczuk Government will continue to focus on projects and policies that support job creation.”
Managing Director and CEO Ian Davies said Senex was proud to support local manufacturing, jobs and investment.
“We’re delighted to secure CSR as a customer and support this key Queensland manufacturer of essential building products,” Mr Davies said.
Senex’s initial gas marketing focus is to partner directly with domestic commercial and industrial customers for long-term, enduring and mutually beneficial relationships.
“This agreement with CSR follows the Queensland Government’s policy to support new supplies of natural gas into the domestic market and this is a great outcome for Queensland.”
CSR will use the gas in its three south-east Queensland manufacturing plants that make PGH bricks, Gyprock plasterboard and Bradford insulation. The plants employ 260 people at Brendale, Coopers Plains and Oxley.
The initial three-year contract between Senex and CSR will see the manufacturer take a minimum of 1.95 petajoules of gas and, if CSR extends the agreement, a maximum of 3.25 petajoules. As an example, the energy being sold would power at least 37,000 homes in a year – a city about the size of Rockhampton – and up to about 60,000 homes.
Project Atlas is on 58 square kilometres of land the Queensland Government granted for domestic-only gas production in March 2018.
Almost 25,000 square kilometres has been released in Queensland for gas exploration since early 2017, almost a third of it for the domestic market only.
Gas from Senex’s wells will be compressed at a Jemena processing plant, transported in a Jemena’s pipeline to Wallumbilla, and onward to market.
Jemena also has a 622-kilometre pipeline bringing an additional 90 terajoules per day into Australia’s east coast gas network via Mount Isa.