The company on Tuesday said that the positive final investment decision would increase production by 50%, to 24 TJ/d, with the increased production to be online by the first quarter of 2022.

The expansion would also result in a 15% reduction in unit cost gas processing tariff payable by Senex.

“This investment follows strong project execution and natural gas production performance at Roma North, with reservoir performance and well availability continuing to excel,’ said Senex MD and CEO Ian Davies, adding that the project was an excellent example of the low-risk and high return organic growth opportunities available within its established infrastructure operating model.

Under the terms of the Roma North agreement, energy infrastructure operator Jemena will procure and install two additional compression units to increase capacity to 24 TJ/d, with the company already having placed the orders for the long lead items.

Senex will drill up to 15 additional natural gas wells, starting in late 2021, install gas and water gathering systems, and expand the existing Roma North water infrastructure.

“Senex and Jemena have proven ability to partner to efficiently deliver natural gas projects, with the Roma North expansion representing our first investment to accelerate development of Senex’s significant Surat basin natural gas reserves,” said Davies.

“Senex is committed to contributing to Australia’s gas-fired recovery from the Covid-19 recession, with this Roma North expansion project the first example of our high-quality investment opportunities.”

Natural gas production from the Roma North expansion will continue to be delivered to the Gladstone liquefied natural gas project, under an existing 15-year gas sales agreement.

Meanwhile, Senex on Tuesday reported that quarterly production for the period ended September had increased by 13% on the June quarter, to reach 803 000 barrels of oil equivalent.

Total sales volume for the period also increased by 10%, to 724 000 barrels of oil equivalent, while sales revenue declined by 8% on the June quarter, to A$31.1-million, with the company noting that the strong domestic contracted gas prices had been offset by lower oil-linked gas pricing.

“Senex has begun the new financial year with strong momentum and new investments under way for acceleration of production from our extensive natural gas reserve position in the Surat basin,” said Davies.