Senex Energy will push ahead with a $1bn expansion of its Atlas and Roma North natural gas fields after receiving federal approval for the stalled project.
The Queensland company, owned by Gina Rinehart’s Hancock Prospecting, received federal Government environmental approval to resurrect its Surat Basin project after 18 months on hold.
It will deliver 60 petajoules of natural gas each year to the east coast from the end of 2025, some 10 per cent of its annual demand.
The approval, one of the largest new gas developments on the east coast, comes days after the energy market operator warned of a gas shortfall in future winters due a lack of supply.
Senex CEO Ian Davies said the environmental approval was the final hurdle and would allow Queensland to export gas to southern states.
“We now have the necessary investment confidence and regulatory approvals to proceed with our expansion and deliver sorely needed natural gas supply to the east coast market,” he said.
“The expansion will drive a significant boost in natural gas supply for Australia, demonstrating Queensland is continuing to do the heavy lifting for the east coast.”
Senex said the project would boost regional communities with some $200m in economic input and the creation of hundreds of jobs.
It was put on hold in 2022 following an “unprecedented” federal government intervention in the gas market to cap wholesale prices.
Mr Davies said more gas supply was needed for energy stability.
“This announcement is especially timely given the current pressures that the east coast energy system is experiencing, particularly in southern states,” he said.
“The Government has made it clear that gas is required until 2050 and beyond, and that investment in new gas supply is needed if we are to reach net zero with thriving industries.”
Senex’s announcement could reignite debate about the role gas will play in the nation’s transition to net zero.
Energy Minister Chris Bowen has said the fuel will have an essential role, while ruling out subsidies to the lucrative sector. The Coalition was yet to reveal a detailed transition plan using gas.
Mr Davies said: “Gas is the essential and reliable energy source that can step in to firm the electricity grid when coal, wind and solar generation is not providing the energy required. Current energy system pressures and forecast gas shortfalls in coming years highlight the urgent need for more reliable natural gas supply in our energy system.”
