Senex Energy and AGL have signed a conditional gas supply agreement to deliver up to 42 petajoules (PJ) of natural gas from the proposed Atlas expansion in Queensland’s Surat Basin beginning in January 2025.
Senex Chief Executive Officer Ian Davies stated that the additional supply to the domestic market indicated by the agreement, and from the more than $1 billion investment in Queensland’s Western Downs region, will benefit Australian energy customers.
“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,” Davies said.
According to Davies, a more secure and consistent gas supply would assist Australian homes in keeping the lights on and small industries in operation.
“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,” he added.
He noted that the agreement would provide additional significant new supply to the domestic market at a time when it’s needed most.
“Gas is the critical safety net, maintaining the stability of the electricity grid and supporting Australia’s manufacturers as the road to net zero becomes increasing complex,” Davies said.
According to Senex, the new gas agreement and the start of gas supply in 2025 are solely conditional on the prompt restart of Senex’s Atlas expansion, halted in December 2022 due to government intervention in the gas market. The resumption of the project is contingent on the successful settlement of regulatory arrangements and the receipt of relevant Commonwealth approvals.
