Gina and the Koreans pump $1 billion into Qld gas expansion

Brisbane company Senex has announced a $1 billion expansion of its coal seam gas operations in Queensland with first delivery into the domestic market in two years.

Aug 11, 2022, updated Aug 11, 2022
Senex's Roma North gas project will be part of the expansion

Senex's Roma North gas project will be part of the expansion

Senex, which was bought out by Gina Rinehart’s Hancock Energy and POSCO, earlier this year, said it would expand its Roma North and Atlas projects in the Surat Basin which would mean an increase in production by the company to 60 petajoules a year, or about 10 per cent of the east coast gas demand, or 2.7 million homes.

The expansion follows a warning recently by the ACCC that a shortfall in domestic gas was likely to occur next year.

Work is expected to start within weeks and about 200 jobs would be created during construction, including about 50 permanent roles. About $200 million was expected to be spent with regional businesses.

The bulk of the investment would be spent over the next two years, but regulatory approvals were still needed for the project.

Senex chief executive Ian Davies said the recent electricity crisis proved natural gas was critical to providing secure and reliable energy to underpin renewables and replace the ageing coal generation.

“This new investment to significantly boost domestic natural gas supply supports Australia’s energy security and continues to underscore Queensland’s position as a reliable energy provider,” he said.

The Queensland Resources Council chief executive Ian Macfarlane said the expansion by Senex demonstrated the best path forward to shoring up Australia’s energy security and will be welcomed by the market.

He said it was more important than ever that investors have the confidence to make significant investments in resources and energy projects.

“A stable regulatory and royalty regime is essential to providing companies with the confidence to invest significant capital towards new projects,” he said.

“No state should be complacent that investments in resources and energy projects of this scale will go ahead without a steady and reliable regulatory framework, on which companies can base long-term investment decisions.”

However, activist group Lock the Gate said all that would be achieved by the strategy was the locking in of high energy prices.

InQueensland in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

“It’s clearer now than ever before that more gas is not the answer to Australia’s energy crisis,” LtG’s Queensland co-ordinator Ellie Smith said.

“Senex’s plans will only keep manufacturers and residents locked into volatile gas prices.”

She said there were more than 8600 producing CSG wells in Queensland covering an area the size of Tasmania.

“We’re calling on the Albanese Government to pull the domestic gas trigger and to directly cap domestic gas prices and the for the Queensland Government to stop putting farmers at the mercy of the polluting gas industry,” she said.





Local News Matters
Copyright © 2024 InQueensland.
All rights reserved.
Privacy Policy