Article by Paul Hunt courtesy of Energy News Bulletin.
GINA RINEHART-backed Senex Energy has entered into a conditional gas supply agreement with AGL for 42 petajoules of gas from its Atlas expansion project in Queensland, but warned it may not commit to it.
On Friday, Senex said in a press release it would support the domestic market, but only if the government provided a “satisfactory resolution” to regulations recently introduced.
It follows a decision by Senex to halt investment at its Atlas project, in protest against a swathe of government interventions imposed on the upstream gas industry from December last year.
On Monday the company could not commit to the expansion, but in the same breath said it hoped to ensure secure and reliable supply for the domestic market.
“More secure and reliable gas supply will help to keep the lights on for Australian households and keep small manufacturers in business,” Senex CEO Ian Davies said.
“The ACCC and Australian Energy Market Operator have forecast structural gas shortfalls in the east coast market without new supply in the coming years and have warned of the urgent investment needed to ensure enough supply.
“This agreement will add critical new supply to the domestic market when it’s needed most.”
The deal will might Senex provide supply from January 2025.
“The new gas deal between Senex and AGL and the commencement of gas supply in 2025 is conditional only on the timely recommencement of Senex’s Atlas expansion which was put on hold in December 2022 following Government intervention in the gas market,” Senex added.
Project recommencement requires the satisfactory resolution of regulatory arrangements and the receipt of certain Commonwealth approvals.”
The development of Atlas will see production raised to 60 PJ per annum.
