Senex secures Surat Basin lease

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The Palaszczuk Government in Queensland has announced that it is “moving rapidly to boost gas supplies for industry” with confirmation that a Queensland company is the preferred tenderer for a Petroleum Lease on land in the Surat Basin released to supply the domestic market.

Minister for Natural Resources and Mines Dr Anthony Lynham said he was very pleased to see emerging gas producer Senex secure the rights to supply such a critical resource for our market.

“The Palaszczuk Government is leading the nation with practical measures to increase domestic gas supplies and support local jobs,” the Minister said.

“This tender was a pilot using for the first-time provisions of resources legislation to direct gas to the domestic market. We were keen to understand if there was market interest.

“Securing this Petroleum Lease will open up access to 58 square kilometres of land near Miles. The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already underway.

“Around 150 jobs are expected to be created and Senex expects to invest over $200 million on wells and infrastructure over the project’s life.

“Importantly this land is adjacent to existing gas infrastructure which will help to fast-track production from wellhead to market.

“Senex must now negotiate land access agreements and fulfil all existing environmental and Native Title requirements before the Petroleum Lease is granted and work can begin.

“All going well, it is expected that gas from this project will become available to the local market within the next two years.”

Senex managing director and CEO Ian Davies said Queensland was taking a leadership role to increase the domestic gas supply.

“We are proud the Queensland Government has entrusted Senex to deliver this innovative initiative, which is one practical solution to increasing the supply of gas, while helping to provide energy security for businesses and households on Australia’s east coast,” Mr Davies said.

Dr Lynham said following the success of this tender process, a second tendering opportunity would shortly be announced for two areas north of Surat in the Bowen and Surat basins.

“We are working to increase supply to the gas market and encouraging new local entrants. I would encourage companies to make their bids to develop these new areas,” Dr Lynham said.

The competitive tendering process ensures that the State’s resources are responsibly managed by allocating exploration rights to companies that are most capable of exploring for these resources, Dr Lynham added.

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