Senex secures seven gas supply deals in Australia

Senex Energy, majority owned by Posco International, has signed seven gas supply agreements in recent months, Posco International announced on August 10. 

The company will supply a combined total of approximately 133 petajoules of natural gas to AGL, BlueScope, Liberty Steel, Orora, Visy, EnergyAustralia, and Engie.

This supply of 133 petajoules of natural gas is equivalent to producing around 2.5mn tonnes of LNG, contributing to roughly 25% of the annual gas demand in eastern Australia, Posco International said. The agreed-upon supply contracts extend for up to 10 years, starting from 2025.

In response to the increasing demand for natural gas, POSCO International, in collaboration with its partner Hancock, is making an investment of A$300mn to expand large-scale gas processing facilities of Senex Energy.

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/year, representing more than 10% of annual east coast gas demand, and around 40% of annual Queensland gas demand.

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