Senex maps out Atlas plans

Senex Energy’s $1 billion Atlas gas development has moved to the next stage of approvals as the company reconsiders expansion plans following major government intervention in gas markets.

Documents for the Queensland project were released as part of the federal government’s environmental approval process, with Atlas Stage 3 to open for public comment.

Senex is pursuing a $1 billion development at Atlas, following an acquisition deal last year which gave South Korea’s POSCO and Gina Rinehart’s Hancock Prospecting control of the company.

Up to 151 coal seam gas wells will be operated under the proposal, according to the application. The initial stage of Atlas went online in 2019 with 60 wells.

Senex is seeking approval for work until 2075, including decommissioning.

The development would enable 200 petajoules of gas to be produced for domestic and international markets, and lift Senex's output to 60PJ a year.

The project’s previous owners, Australia Pacific LNG, had received approval to drill the wells in 2009, the documents said, but the federal Environmental Act would not allow approvals for part of a larger project to be transferred to a new proponent.

In December, Senex said contracting with potential customers of the development would be on pause following the federal government’s major intervention in energy markets.

That included a price cap on both gas and coal, and subsidies for coal power.

The documents were submitted prior to the announcement of the intervention, but the approvals will be key if Senex chooses to move ahead.

A spokesperson for Senex said today the expansion plans were still paused.

“This EPBC application for approval is required pending any future decision to proceed with Senex’s expansion plans in the Surat Basin,” the spokesperson said.

“These expansion plans, that would deliver more natural gas supply, local jobs and investment, have been paused due to the federal government’s unprecedented intervention in the domestic gas market.

“Senex continues to work with landholders, local communities, the regulator, and all levels of government as it upholds the highest environmental standards while it progresses through these approvals processes.”