http://www.copyright link/business/...id-east-coast-squeeze-20180118-h0kqa5#content
Gazzumped by Senex ?
Senex Energy is set to kick off serious discussions with potential gas customers within weeks as it fast-tracks its $200 million-plus Atlas gas project in Queensland with the backing of its US private equity shareholder EIG Global Energy Partners.
Managing director Ian Davies said Senex had fielded tentative interest from domestic gas customers for over 150 terajoules a day of demand during the state government tender process for Project Atlas, which it
won last September against some much bigger rivals.
The oil and gas junior, whose
US backer is a founder of Santos suitor Harbour Energy, will now go back to those interested parties for further talks, with the aim of sealing gas sales this year.
Senex won the fiercely contested tender with a commitment to spend more than $200 million in developing gas resources near Miles to start production in 2019. Under the terms of the auction, the gas must be sold into the east coast market, rather than exported as LNG. At the same time, the company is developing its Western Surat project which is supplying gas to Santos' GLNG export plant in Gladstone.
One of the losing bidders in the Queensland government tender,
Incitec Pivot, is hunting for affordable gas to keep its Gibson Island fertiliser plant in Queensland running when an existing contract expires at the end of September. But Mr Davies said Senex couldn't supply gas soon enough to meet Incitec's needs, although it would continue to hold discussions with Incitec.
