POSCO International subsidiary Senex Energy signs 7 long-term natural gas supply contracts
A natural gas drilling rig of Senex Energy in Australia / Courtesy of POSCO International
By Kim Hyun-bin
POSCO International announced, Thursday, that its Australian subsidiary, Senex Energy, has consecutively signed seven long-term gas supply contracts in Australia.
Senex Energy recently inked approximately 133 petajoules worth of supply contracts with various companies including AGL, the largest power generation company in Australia, as well as BlueScope, Liberty Steel and Orora.
The 133 petajoules of natural gas is equivalent to about 2.5 million tons of liquefied natural gas (LNG) production, meeting around 25 percent of the annual gas demand in the eastern region of Australia. The supply contracts will span a maximum of 10 years starting in 2025.
"We have secured a robust foundation for sustainable revenue generation over the next 10 years, while also expanding our eco-friendly energy transition projects such as green hydrogen," Senex Energy said.
In line with the increasing demand for natural gas, POSCO International and its partner Hancock have invested $300 million AUD ($196.3 million) in Senex Energy. The investment will be used for the expansion of large-scale gas-processing facilities.
With the completion of the gas-processing facility expansion for the Atlas and Romanos gas projects within Australia last September, Senex Energy's production capacity will expand to 60 petajoules by the end of 2025, triple the current level. POSCO International plans to gradually introduce as much as 400,000 tons of domestically produced natural gas, converted into LNG, into the domestic market.
"We are actively expanding our energy territory through ongoing initiatives such as securing distribution agreements for production from the Bunyu field in Indonesia," a POSCO International official said. "We plan to diversify our energy resource development portfolio through balanced development of offshore and onshore gas projects."