Commercial operations have today commenced on the $140 million Atlas Gas Pipeline, which will transport gas from Senex Energy's Atlas gas acreage - located near Wandoan in south-west Queensland - to the east-coast gas market via the Wallumbilla Gas Hub.
In June 2018, leading energy infrastructure company, Jemena, signed an agreement with Senex Energy (ASX: SXY) to build, own, and operate the 60km gas pipeline in order to fast-track new gas supply to the domestic market. Gas transported through the new pipeline will support local industry, and will be sold to manufacturers including CSR, Orora, and O-I.
Jemena's Managing Director, Frank Tudor, said the Senex-Jemena partnership demonstrated how the gas industry is responding to demand for additional gas for the domestic market.
"What's impressive about this partnership is the speed with which it has been executed. In just under 18 months Jemena and Senex have safely delivered this project - including the physical construction of the pipeline, which was completed in under four months," said Mr Tudor.
"We want to thank the Wandoan and other communities in south-west Queensland and the Darling Downs region for their support and interest in this project, and for trusting us to deliver it on their land," Mr Tudor said.
"The communities in these areas have been absolutely pivotal to the overall success of this project."
Mr Tudor said the project created hundreds of roles, with almost 200 jobs filled by people from the local community.
"We also made use of local businesses and contractors throughout the design and build of the project with more than $12 million in contracts awarded to local companies.
"Conservatively, we estimate this project contributed more than $24 million in flow-on benefits to these communities."
Mr Tudor said the Atlas Gas Pipeline formed part of Jemena's broader Northern Growth Strategy which seeks to build an interconnected network of pipeline assets across the country's north in order to bring new gas to market via the most direct and efficient routes available.
The strategy commenced with the completion of the $800 million Northern Gas Pipeline in 2018, and was extended in July this year when Jemena revealed its proposed pipeline route for the Galilee Gas Pipeline which is planned for construction.
The Atlas acreage was the first of 13 exploration tenements awarded by the Queensland Government to fast-track the delivery of additional gas to the domestic market.
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