Shot in the arm for Roma
Wednesday 01 February 2017
The Western Surat Gas Project (WSGP) moved a step closer today, after global investment firm EIG announced it will inject around $55 million into local gas company Senex to help them develop the resource.
The WSGP is located around 30 kilometres north of Roma, and would - if built - see the development of around 1000 gas wells over thirty years, across a nine hundred square kilometre area.
However, it's anticipated no more than 300 wells would be sunk in the first five years of the project with gas generated compressed and piped into the east coast gas network - and most likely exported out of Gladstone.
The investment represents the first major new investment in Australia’s CSG industry in nearly five years, and follows hot on the heel of improving oil and gas prices following the sharp declines witnessed between 2014 and 2016.
In announcing the investment, Senex Managing Director and CEO Ian Davies said that the transactions would provide the strength and momentum to develop its significant upstream positions in the Surat and Cooper Basins.
“We know the Western Surat Gas Project is a great asset, given our understanding of the subsurface and our ability to operate safely and at low cost,” he said.
“EIG is a respected global energy investor and their support shows they also see the opportunity for Senex to build a significant east coast gas business.
Back in 2015 Senex sold off part of the Western Surat Gas Project to Gladstone based gas exporter Santos GLNG for around $42 million.
They also signed a binding 20-year gas supply agreement that would see them supply the Gladstone GLNG gas processing facility with raw gas for export.
Santos GLNG exported its first LNG from Gladstone Harbour in late 2015.
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