Oil and Gas News

Senex offloads Roma North gas processing facility to Jemena

Senex Energy has completed the $50 million sale of the Roma North gas processing facility and pipeline to major energy infrastructure operator Jemena.

The company plans to use the proceeds from the sale to support continued development of its Surat Basin natural gas developments and other growth projects.

Jemena, meanwhile, will compress and transport Senex’s natural gas to market under a long-term gas tolling arrangement.

The arrangement provides firm capacity service to Senex, with the company to pay a capacity-based tariff to Jemena in line with an agreed production profile.

The facility has an initial processing capacity of around six petajoules/year (16 terajoules/day) with provision for low-cost expansion to around nine petajoules/year (24 terajoules/day) at Senex’s option.

Processing capacity can be furthered expanded up to the designed site capacity of around eight petajoules/year (48 terajoules/day).

Senex is the first independent Queensland natural gas company in recent years to commission a greenfield gas processing facility.

Managing director and chief executive officer Ian Davies said completion of the transaction continued to de-risk the company’s Western Surat natural gas developments.

“Senex’s broad natural gas development capabilities have been confirmed again at Roma North by construction and commissioning of the gas processing facility and pipeline to schedule and on budget,” Davies said.

“This transaction allows Senex to focus on its core competency of developing natural gas acreage while also benefiting from long-term tolling arrangements with flexible expansion options.

“We are also pleased to have strengthened our relationship with Jemena as we work together to deliver more natural gas to the east coast market.”

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