- Senex Energy will sell its Roma North natural gas processing facility and pipeline to Jemena, a major energy infrastructure operator, for $50 million at a 21-year term
- The agreement will see Jemena own and operate Senex’s natural gas developments: Roma North and Project Atlas
- Jemena will process raw gas of 123 PJ at Roma North, at the initial installed capacity of approximately six petajoules per year
- This agreement will deliver more gas to the east coast market at a competitive price
Senex Energy Ltd has agreed to sell its Roma North natural gas facility and pipeline to Jemena, for $50 million. The companies have entered into a long-term gas agreement where Jemena will process and transport natural gas from Senex’s Western Surat developments to market.
“We are pleased to be developing Senex’s significant upstream natural gas acreage position alongside Jemena, a world-class operator of downstream infrastructure, Senex Managing Director and CEO, Ian Davies, said.
Once the $50 million sale is complete, Jemena will be the owner and operator at both of Senex’s Queensland natural gas developments, Roma North and Project Atlas.
“With low-cost expansion options designed into the facility and very competitive long-term tariff arrangements, this transaction will accelerate efficient recovery of Senex’s material gas reserves from Roma North and the broader Western Surat acreage,” Ian said.
In June 2018, the company reported Proved and Probable (2P) gas reserves of 615 petajoules (PJ) attributable to the Surat Basin gas acreage. 260 PJ of 2P gas reserves are attributable to Roma North and 144 PJ of 2P gas reserves are attributable to Project Atlas. The remaining 2P gas reserves are attributable to the Surat Basin acreage proximate to Roma North.
Under the agreement, Jemena will process raw gas of 123 PJ at Roma North, at the initial installed capacity of approximately six petajoules per year for 21 years.
If Senex chooses, there is the option to extend the term up to 10 years.
Both companies are looking forward to bringing more natural gas to the east coast market at a competitive price.