- Senex Energy has completed the $50 million sales of its Roma North gas processing facility to Jemena
- The deal will be for 21 years ending December 31, 2040
- The tolling agreement will provide a capacity service to Senex
Senex Energy has completed its $50 million sales with Jemena of its Roma North gas processing facility.
After successful testing, Jemena has taken ownership of the facility and will compress and transport Senex’s natural gas to market under a long-term gas tolling arrangement.
The deal will be for 21 years ending December 31, 2040, and the companies will have an option to extend for a further 10 years.
The tolling agreement will provide a capacity service to Senex. The company will pay a capacity-based tariff to Jemena in line with an agreed production profile.
Senex is an independent and growing Australian oil and gas company that has been around for 30 years. It has projects in Queensland and South Australia.
Roma North is within the Western Surat Gas Project located north of Roma in Queensland. The project lies in the Maranoa Regional Council area and is adjacent to producing gas fields operated by Santos and Origin Energy.
Senex is the first independent Queensland natural gas company in recent years to commission a greenfield gas processing facility.
The plant has performed above expectations, with the first two compression trains operating above the nameplate capacity of 8 terajoules(TJ) a day.
The initial processing capacity at the facility is 16 TJ a day with a provision for low-cost expansion to 48 TJ a day.
Senex’s CEO Ian Davies said this transaction will allow the company to focus on developing its natural gas acreage.
“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,” he said.
Jermena owns and operated energy and water transportation assets across northern Australia and Australia’s east coast. It supplies households and businesses with essential services every day.
“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,” Ian added.