The Federal Government has approved the development and operation of up to 151 new coal seam gas wells by Senex Energy in Queensland. 

The Atlas project, co-owned by Australian mining magnate Gina Rinehart and South Korea’s steel giant Posco, is expected to significantly boost domestic gas supply.

A spokesperson for Environment Minister Tanya Plibersek says that the Atlas stage 3 project will primarily serve Australian households and manufacturing sectors.

“This project will contribute domestic gas supply to households and Australian manufacturing – including for glass, bricks, cement and food packaging,” the spokesperson said.

Senex says the project is urgently needed in response to energy pressures. 

The company claims the project will deliver 60 petajoules of gas annually to the east coast market from the end of 2025, addressing energy shortages particularly in southern states.

The approval has faced strong opposition from climate advocates. Rod Campbell, research director at the Australia Institute, criticised the decision, saying; “While Australia is distracted talking about the LNP nuclear charade, the federal government is approving new fossil fuel projects. New fossil fuel projects are the last thing the climate needs”. 

Jennifer Rayner, head of policy and advocacy at the Climate Council, argued that Australia’s current gas supply is sufficient for decades. 

“[Eighty per cent] of Australia’s gas is used by the export industry. We have more than enough to meet our small and declining needs as we transition to clean energy,” Rayner said. 

She pointed out the global glut of gas due to new projects in the US and Qatar, arguing that Australia should not exacerbate climate pollution by adding new gas wells.

The project’s approval, valid until 2080, includes the construction of supporting infrastructure such as access roads. 

Senex’s investment is expected to create over 900 jobs in Queensland, injecting more than $200 million into local businesses and communities.

Despite the controversy, Senex Energy says it remains focused on its expansion plans. 

“Our Australian manufacturing and retail customers can now count on long-term, reliable natural gas supply to flow to factories and households from 2025,” Senex CEO Ian Davies said.