Queensland natural gas is now fuelling Queensland energy and manufacturing jobs in a national first.
Senex Energy's Project Atlas has delivered its first gas to its first customer, state-owned power generator CleanCo, which is focused on delivering affordable clean energy.
Within weeks, gas will also flow to building products maker CSR, which has three south-east Queensland manufacturing plants.
Senex managing director and CEO Ian Davies said the company has delivered gas from Australia's first acreage dedicated to domestic supply in what is believed to be record time for a greenfield project.
"With the support of the Queensland Government, Senex has successfully delivered this development within 18 months of grant of the petroleum lease," Mr Davies said.
"We have achieved this on budget and ahead of schedule, allowing early gas sales to be made to one of our foundation customers, CleanCo.
"We thank our many community and corporate partners for their roles in this significant achievement, including our infrastructure partner Jemena and drilling contractor Easternwell.
"With the processing facility delivering gas, we are focused on completing the initial ~60 well drilling campaign by mid-2020 and ramping up production to an initial plateau of 12 PJ/year by the end of FY21."
The gas is being supplied at the Wallumbilla Gas Hub via the 60km Project Atlas pipeline, and being sold on a fixed-price basis in line with current market levels.
Mines and Energy Minister Dr Anthony Lynham said the energy and resources milestone was underpinning manufacturing jobs and businesses and the state's reliable, lower-cost electricity supply.
"This is a gold medal result from the Palaszczuk Government's ground-breaking move to release land two years ago exclusively for gas for the domestic market," Dr Lynham said.
"Atlas and its connecting pipeline have created hundreds of construction jobs in regional Queensland and will now support hundreds of manufacturing jobs"
Mr Davies said Atlas was now generating royalties for roads, schools and hospitals thanks to Queensland's innovative domestic gas policy.
"Senex will continue to support jobs and regional economies, with more than $400 million being invested in Queensland to bring natural gas to market," he said.
