APA Group has entered a 20-year firm gas transport agreement with Senex Energy for the Atlas natural gas development in Queensland’s Surat Basin.
Under the two-decade agreement, APA will provide capacity for 60TJs per day of natural gas transport along APA’s Reedy Creek Wallumbilla Pipeline to the Wallumbilla Hub.
Execution of the agreement follows Senex’s final investment decision on its expansion at Atlas, after it received final environmental approvals for the Atlas East gas project from the Federal Government.
As part of the contract, APA will invest approximately $20 million to increase capacity on the Reedy Creek Wallumbilla Pipeline and Wallumbilla Hub to support the expansion.
The expansion works will also include modification works to existing APA infrastructure.
APA Group CEO, Adam Watson, said that APA has worked closely with Senex to support the Atlas expansion plans in the Surat Basin.
“This additional gas supply is critically important to Australian gas users at a time when the east coast is facing gas supply shortages as early as 2027,” Mr Watson said.
“Australia’s build-out of renewables needs to accelerate so we can take coal out of the system, but we cannot decarbonise and speed-up the energy transition without gas and without investment along the gas value chain.
“We have an abundance of gas resources in Australia, including in Queensland and regions such as the Beetaloo basin. To unlock these resources and transport them to demand centres, we need to encourage investment and we need the right policy environment to support it.
“This means ensuring the regulatory settings support investment in our major gas pipelines so we can deliver new gas transmission capacity along the east coast. We’re already seeing the benefits of our recent east coast gas grid expansion, particularly along the South West Queensland Pipeline, which has recently operated at capacity transporting gas from Queensland to southern states.
“It will also ensure we don’t become reliant on imported LNG which we know is more expensive and higher emissions.
“The fact remains, domestically sourced natural gas is, and will continue to be, essential if we’re to deliver a reliable, affordable and lower emissions future that can underpin a strong Australian economy.”
Featured image: Martin Pelanek/Shutterstock.com
