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APA Group, Senex Energy team up on Qld gas transportation deal

APA Group Senex Energy

APA Group has signed a gas transport agreement with Senex Energy for its Atlas natural gas development in Queensland’s Surat Basin.

Under the 20-year agreement, APA Group will provide capacity for 60TJs per day of natural gas from its Reedy Creek Wallumbilla pipeline to the Wallumbilla Hub.

APA will also invest $20 million on increasing capacity of the pipeline to support Senex Energy’s Atlas expansion, which is set to boost domestic natural gas supply on the east coast from 2025.

APA chief executive officer Adam Watson said the company has worked closely with Senex to support its 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,” 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.”

The need for increased gas supply is recognised by the Government’s Future Gas Strategy, the Australian Energy Market Operator’s Gas Statement of Opportunities and its Integrated System Plan, which projects Australia’s east coast will need at least 12.8GW of new gas-fired generation in the coming years.

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