POSCO Speeds Up Natural Gas Expansion Plan in Australia via Subsidiary Senex Energy

Source: www.gulfoilandgas.com 6/17/2024, Location: Not categorized

On the 31st, the company decided to participate in a capital increase worth KRW 300 billion to triple its natural gas production Drilling of additional production wells and expansion of infrastructure is in full swing to triple production

The company plans to operate an annual 60 petajoule (PJ) production system starting in 2026

Stable demand has already been secured through the signing of long-term local supply contracts

In addition to production expansion, the company will also focus on securing potential reserves through drilling for exploration mines

POSCO INTERNATIONAL (CEO Lee Kye-In) is speeding up its expansion of the natural gas business in Australia by making timely investments in its subsidiary, Senex Energy, to boost its production expansion plan.

On March 31, the company decided through its board of directors to participate in a capital increase for its subsidiary, Senex Energy, jointly with its partner Hancock Energy. The two companies will invest a total of AUD 650 million (approximately KRW 600 billion) to build an annual 60 petajoule* (PJ: international unit of measurement of energy consumption) production system by 2026.

POSCO INTERNATIONAL will contribute AUD 326 million (approximately KRW 300 billion) to this capital increase, based on its 50.1% stake in Senex Energy. 60 petajoules (PJ) is enough to produce 1.2 million tons of LNG.

The approved investment will be used to drill additional gas production wells and build gas field production facilities, including gas processing facilities and pipelines.

This investment aims to speed up the company’s plan to triple natural gas production, which was announced in July 2022, as the supply of natural gas in eastern Australia is expected to gradually decrease. The Australian government also released its Future Gas Strategy on the 9th of last month, emphasizing the importance of natural gas in achieving carbon neutrality by 2050 and committing to its continued development.

Additionally, Senex Energy has secured long-term gas supply contracts with Australia’s largest electricity generation company, AGL, as well as with BlueScope, Liberty Steel, and other companies for 151 PJ of gas to ensure profitability after increased production.

Senex Energy, an energy company that produces and develops natural gas in eastern Australia, has experienced rapid growth since becoming a subsidiary of POSCO INTERNATIONAL in April 2022. Before the acquisition, Senex Energy was producing 19.6 PJ of natural gas, gaining AUD 26 million in operating profit in 2021, but in 2023, it produced 26.9 PJ of natural gas achieving AUD 58 million (approximately KRW 53 billion) in operating profit, thus contributing to improving its parent company’s performance.

By 2026, when the incremental gas will be supplied to eastern Australia, Senex Energy is expected to generate more than KRW 600 billion annually in sales, contributing significantly to the parent company’s increased profit.

Furthermore, Senex Energy plans to focus on securing additional reserves by not only expanding production from existing gas fields but also drilling exploration wells. In July of this year, drilling will be conducted in the Rockybar exploration mine in eastern Australia, and with its 50% stake in the Range evaluation, Senex Energy is expected to maintain a stable gas business through further continuous development even after this development for expansion.

Meanwhile, Hancock, an Australian resource development company partnered with POSCO INTERNATIONAL as well as an owner of the Roy Hill mine, has been successfully operating its business through a joint investment with POSCO and is expanding its collaborative partnership into energy business by jointly acquiring Senex Energy with POSCO INTERNATIONAL in 2022.

Last month, Hancock executives visited POSCO INTERNATIONAL’s office in Songdo and met with key executives, including CEO Lee Kye-In, to support the expansion of investment for production and to have in-depth discussions on joint investment in energy projects in Australia and overseas, building on the trust between the two companies.

Colombia >>  7/22/2024 - New Quarterly Production Record in CPO-5
Consolidated Pro Forma Production Over 41,000 boepd as of July 1, 2024

GeoPark Limited (“G...

Colombia >>  7/21/2024 - Interoil’s daily average operated production in June was 1,719 boepd, down 604 boepd compared with figures for May. June’s daily operated production r...

Trinidad and Tobago >>  7/19/2024 - Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, provides an update on operations for the...
Egypt >>  7/18/2024 - Pharos Energy plc, an independent energy company, issues the following Trading and Operations Update in advance of the Company's Interim Results on 18...

Gabon >>  7/18/2024 - • M&P working interest production in first-half 2024: 37,113 boepd, up 29% compared to the second half of 2023 (10% excluding Venezuela)
o M&P w...

Ukraine >>  7/17/2024 - Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and production group, provides an update on its operational activities in Ukraine...

Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.