Senex wins Surat Basin acreage for domestic gas supply

Brisbane-based oil and gas explorer Senex Energy has been awarded coal seam gas acreage in Australia’s onshore Surat basin in Queensland.

The Queensland government awarded Senex 58 square kilometres of acreage as part of its domestic gas tender which is aimed at boosting domestic supply.

The government offered the acreage for free earlier this year on condition it is used to supply the Australian east coast market, which faces a potential shortage from 2019 due to a tripling in gas demand for three liquefied natural gas (LNG) export plants on Curtis Island.

Senex Chief Executive Ian Davies said the company welcomed the opportunity to be part of the solution in delivering new gas supply to domestic customers on the east coast of Australia.

“We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, with first gas targeted for 2019,” Davies said.

The field is estimated to hold around 200 petajoules of coal seam gas and is capable of sustaining production rates of more than 30 terajoules per day at plateau, according to Senex.

Senex expects to obtain regulatory approvals over the acreage in mid-2018