Senex Energy has achieved first gas production at Project Atlas in the Surat Basin.

The Project Atlas drilling campaign commenced in August 2019 and Senex says 11 wells are complete out of about 60 planned wells.

The first four wells were recently brought online and produced gas immediately.

Senex managing director and chief executive officer Ian Davies described first gas production from Project Atlas as a major achievement.

“Senex was granted the Petroleum Lease for Project Atlas in March 2018. The delivery of a greenfield natural gas development in 18 months is an outstanding achievement,” he said.

“The remainder of 2019 will be active and exciting as we bring more wells online, commission the gas facility and increase production to meet sales agreements commencing January 1 2020,”

Project Atlas includes a 15 petajoule per annum (40 TJ/day) gas processing facility and a 60km buried pipeline to the Wallumbilla Hub.

Jemena has completed construction of the pipeline and is nearing completion of the gas facility.

Natural gas from Project Atlas will supply major Queensland manufacturers including CSR, Orora and O-I.

Senex said it had contracted most of its expected gas production volumes in 2020, with more contracts under negotiation.