EIG Invests in Australian CBM

Australia's Senex Energy said February 1 it has brought in US private equity fund EIG Global Energy Partners as a "substantial shareholder."

The two will work to establish a funding model to accelerate development of the Western Surat Gas project, Senex’s flagship coalbed methane (CBM) scheme, in Queensland.

EIG featured in the news a day earlier when Chrysaor, backed by EIG, announced an up to $3.8bn deal to buy North Sea upstream assets from Shell.

Senex and EIG said they will develop an appropriate funding model for the Western Surat Gas project and other growth projects within Senex’s portfolio, including EIG participation in such funding.

EIG will extend funding of up to $300mn for Western Surat Gas project acceleration, Senex said February 1. EIG currently holds approximately 2.7% of Senex issued capital following on-market purchases. It will hold approximately 12% of the expanded Senex issued capital following completion of the institutional placement and share purchase plan.

“The Western Surat Gas project is in prime position to supply gas into the structurally short east coast gas market. We believe now is the opportune time to develop these assets as fundamentals are supportive,” EIG CEO R. Blair Thomas said.  

Senex holds extensive onshore oil and gas acreage in the Cooper and Surat Basins while EIG specialises in private investments in energy and energy-related infrastructure. It also has stakes in US firms Chesapeake and Cheniere, plus the Bolivia-Brazil natural gas pipeline, among other assets. 

Shardul Sharma