Queensland’s Project Atlas development by Senex Energy (ASX:SXY), which will supply manufacturers CSR, Orora and O-I, has produced its first gas.
Approval for the project was granted by the Queensland government in March 2018, with the condition the Queensland project supply Queensland industry. The model has been praised by industry lobby group Manufacturing Australia and others.
According to the Queensland Resources Council chief executive Ian Macfarlane, the domestic-only lease saw that “everyone benefits.”
“At the time it was a pilot guarantee for gas for domestic use which avoided the overly prescriptive conditions in a gas reservation policy. Now it’s a flagship example of best-practice regulation in action – fast, effective and focussed on outcomes,” said Macfarlane in a statement on Tuesday.
“This project vindicates the Palaszczuk Government’s decision to release land specifically for developing gas for the domestic market but sadly Queensland continues to do all the heavy lifting to provide extra gas for the eastern Australian market.”
As reported by @AuManufacturing in April, the first deal for the project was with building products company CSR, which will be supplied 0.65 petajoules annually, started January 2020.