In an effort to bolster Australia’s natural gas supply, Senex Energy and AGL have signed a conditional agreement for up to 42 petajoules (PJ) of natural gas, starting from January 2025. The supply will come from Senex’s proposed Atlas expansion in Queensland’s Surat Basin, pending government and regulatory approvals.

However, the commencement of gas supply in 2025 is contingent upon the resolution of regulatory arrangements and receipt of specific Commonwealth approvals. The timely recommencement of Senex’s Atlas expansion, which was halted in December 2022 due to government intervention in the gas market, remains a critical condition to operationalize this agreement.

Reflecting on the agreement’s advantages, Ian Davies, CEO of Senex Energy, emphasized that the deal would enhance the domestic market’s supply and trigger a substantial investment exceeding AUD $1 billion in Queensland’s Western Downs region. This significant development is anticipated to considerably boost the domestic natural gas supply.

Ian Davies said: “During this cost-of-living crunch, one certain way to put downward pressure on prices for energy customers is to deliver new gas supply to market – and our domestically-focused Atlas expansion can do just that.

“More secure and reliable gas supply will help to keep the lights on for Australian households and keep small manufacturers in business.

“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.”

  AGL, Atlas expansion project, Australia, Ian Davies, Oil and gas industry news, Oil and gas news, Queensland, Senex Energy, Surat Basin