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Senex and EnergyAustralia today announced they have signed a conditional agreement for the supply of 24 petajoules (PJ) of natural gas from January 2025 from Senex’s proposed Atlas expansion in Queensland’s Surat Basin.
With fresh warnings from the ACCC, in its Interim Gas Inquiry Report released last week, of potential shortfalls in New South Wales and Victoria without new gas supply, Senex Chief Executive Officer Ian Davies said the expansion was important for Australian energy customers.
“Senex’s $1 billion investment to boost gas supply for Australia’s east coast is exactly the type of project required to address supply concerns,” Mr Davies said.
“Our domestically-focused expansion will help to keep the lights on and lower rising energy prices for Australian households and businesses.
“Agreements like this guarantee that secure and reliable gas is available to power our nation – to keep factories turning and Australians in work.
“Senex is proud to be stepping up and playing its part in supplying Australia with the energy it urgently needs,” Mr Davies said.
EnergyAustralia Trading and Transition Executive Ross Edwards said: “Our agreement with Senex is an important step forward in supplying reliable, affordable energy to our retail and business customers in the future.
“Natural gas has a critical role in supporting electricity supply during the energy transition. It allows our gas generation assets to support the firming of renewables in periods of low wind solar generation and to ensure households and business get the energy they need in periods of peak demand. Securing reliable gas supply agreements means we can have greater confidence in a smooth energy transition,” Mr Edwards said.
The new gas deal between Senex and EnergyAustralia 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. Project recommencement requires the satisfactory resolution of regulatory arrangements and the receipt of certain Commonwealth approvals.