Australia's Senex Energy, AGL sign gas deal

Australia’s Senex Energy, majority-owned by Korea’s POSCO International, has entered into a conditional gas supply agreement with utility AGL for the supply of up to 42 petajoules (PJ) of natural gas, the company said on June 16. The gas is expected to be supplied from Senex's proposed Atlas expansion project in Queensland's Surat basin starting from January 2025.

“This agreement will add critical new supply to the domestic market when it’s needed most,” Ian Davies, the CEO of Senex said. “It also comes at a time when the urgency – and challenge – to meet Australia’s emissions reduction and renewables targets is building every day.”

The new gas deal between Senex and AGL and the commencement of gas supply in 2025 is conditional only on the timely recommencement of Senex’s Atlas expansion which was put on hold late last year following government intervention in the gas market. Project recommencement requires the satisfactory resolution of regulatory arrangements and the receipt of certain Commonwealth approvals, the company said.

Senex last December suspended the A$1bn ($687mn) expansion plan for its Atlas gas project in Queensland following the federal government’s decision to cap gas prices.

In August 2022, Senex announced plans to expand its Atlas and Roma North natural gas developments in Queensland’s Surat basin. These developments planned to increase the company's production to 60 petajoules (PJ)/year, representing more than 10% of annual east coast gas demand, and around 40% of annual Queensland gas demand