Oil and gas company Senex (ASX:SXY) has partnered with infrastructure operator Jemena to deliver gas from its Project Atlas to the domestic market by late 2019.
Project Atlas involves the delivery of natural gas from coal seams on acreage in Queensland’s Surat Basin.
Jemena will build, own and operate a gas processing facility and a 60 kilometre pipeline to process and transport gas from the project.
Jemena will fund capital expenditure of around $140 million associated with the design, construction and commissioning the downstream infrastructure.
Senex will pay an agreed tariff for delivery of sales gas to the domestic market over a 25 year term.
Shares in Senex (ASX:SXY) closed 5 per cent higher to 42 cent on Friday.