Senex Energy to Expand Oz Roma North Project
Senex Energy on October 13 announced a final investment decision (FID) on expanding gas production at Roma North project in Queensland by 50% to 24 terajoules/day or about 9 petajolues/year (8.5bn ft3/yr). First gas is expected in the first quarter of the 2022 financial year.
Some A$20mn of capital expenditure net to Senex will be spent on natural gas wells, gas gathering infrastructure and water management infrastructure, funded with the company's existing cash reserves. Gas infrastructure company Jemena intends to construct and fund the Roma North compression facility expansion, with commissioning expected in Q1 FY2022, Senex said.
Under the terms of the Roma North agreement, Jemena will procure and install two additional compression units to take capacity to 24 terajoules/day, having already placed orders for all long-lead items. Senex will drill up to 15 additional gas wells starting in late FY2021, install gas and water gathering systems and expand the existing Roma North water infrastructure.
Natural gas production from the Roma North expansion will continue to be delivered to the Santos-operated GLNG under the existing 15-year gas sales agreement.
The Australian Petroleum Production and Exploration Association (Appea) praised the project, which it said would support local jobs and boost Queensland's economy.
“The oil and gas industry continues to be a powerhouse for Queensland during a tough time and will be a pillar of the economy for decades to come,” Appea said on Twitter.