December 04, 2024 [POSCO]- POSCO INTERNATIONAL (CEO Lee Kye-In) is successfully executing its production expansion plan via its subsidiary, Senex Energy, bearing the fruit of its growth in natural gas operations in Australia.

On the 24th, the company held a ceremony to mark the completion of Gas Processing Facility Unit 1 at the Senex Energy Atlas Gas Field in Queensland, Australia. Susan McDonald, Senator of Australia and Shadow Minister for Resources, attended the event alongside other Australian government officials. Also present were POSCO INTERNATIONAL CEO Lee Kye-In as the representative of Senex Energy’s joint shareholders and Gina Rinehart, Executive Chairman of Hancock Prospecting.

In 2022, POSCO INTERNATIONAL acquired Senex Energy in collaboration with Hancock Prospecting and announced a plan to triple its annual natural gas production from 20 petajoules (PJ, an SI unit for calorimetry) to 60 petajoules. 60 petajoules of natural gas is enough to produce 1.2 million tons of LNG.

Senex Energy, situated in eastern Australia where energy demand is concentrated, plays a crucial role in ensuring a stable energy supply for the region. The Australian Competition and Consumer Commission predicted in its ‘Eastern Australia Gas Inquiry’ (published in June) that a domestic gas supply shortage could occur as early as 2027.

In 2023, to expand its gas production, Senex Energy signed long-term gas supply contracts of up to 10 years with eight buyers for approximately 151 petajoules (PJ) of gas, securing profitability and helping to address the domestic gas supply shortage.

The gas processing facility now entering test operation is crucial infrastructure for gas sales, as the natural gas produced is purified to remove foreign matter, compressed at high pressure, and transported through pipelines to be sold to power plants and city gas services in Eastern Australia.

The completion of Gas Processing Facility Unit 1 marks a significant milestone, showcasing the steady progress of the production expansion project as planned. Senex Energy is currently engaged in several projects―including drilling 280 production wells, constructing two more gas processing facilities, and building gas pipelines―with the objective of completing the production expansion by the end of 2025.

POSCO INTERNATIONAL aims to finish the test operation of Gas Processing Facility Unit 1 and its associated gas pipelines by the second quarter of 2025, followed by gradual sales of the expanded gas production. The company is also on track to operate the Gas Processing Facility Units 2 and 3 in the latter half of 2025 to carry out its production expansion plan without a hitch.

The company anticipates that by 2026, when the planned production expansion is completed, the supply will increase to meet over 10% of the domestic gas demand in Eastern Australia.

n her commemorative speech, Susan McDonald, Senator of Australia and Shadow Minister for Resources, stated, “Eastern Australia is in dire need of a stable power supply, reduced energy costs, and job creation.” She added, “We must bring our abundant gas resources to the domestic market with haste, as Senex Energy is doing today. This requires more new exploration permits and bigger investments.”

POSCO INTERNATIONAL CEO Lee Kye-In remarked, “Today’s event signifies that Senex Energy is poised to become a leading energy company in Australia. POSCO INTERNATIONAL will continue to support Senex Energy to ensure the safe completion of its production expansion projects.”

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