Senex has taken a Final Investment Decision to increase its Roma North gas production by 50 per cent, just weeks after announcing a similar boost for the Atlas domestic gas project.
About 50 construction jobs are set to be created in the $30 million-plus project to expand the Roma North natural gas processing facility, drill more wells and build supporting infrastructure.
Senex said the expansion was expected to be finished within the next year.
Managing director and chief executive officer Ian Davies said the Roma North expansion project was an excellent example of the low-risk, high-return organic growth opportunities available to Senex with its established hub-and-spoke infrastructure operating model.
“Senex is committed to contributing to Australia’s gas-fired recovery from the COVID-19 recession, with this Roma North expansion project the first example of our high-quality investment opportunities,” Mr Davies said.
Under the terms of the Roma North agreement, Jemena will procure and install two additional compression units to take capacity to 24 TJ/day, having already placed orders for all long-lead items.
Senex will drill up to 15 additional natural gas wells commencing in late 2020-21, install gas and water gathering systems and expand the existing Senex-owned Roma North water infrastructure.
The capital expenditure for its components is expected to reach $20 million.
Senex said natural gas from the Roma North expansion will continue to be delivered to GLNG under the existing 15-year gas sales agreement (GSA).
Senex said last month it was set to create 100 construction jobs and support hundreds of manufacturing roles after winning a competitive tender for gas acreage that will expand its successful Atlas domestic gas project 50 per cent.