POSCO International to Invest Additional 300 Billion KRW in Australian Natural Gas Project

POSCO International has intensified its production increase plan by expanding its investment in the Australian natural gas business.

POSCO International (hereinafter POSCO Inter) held a board meeting on the 31st of last month and decided to participate in a paid-in capital increase for its subsidiary, Senex Energy. This capital increase will be undertaken together with its partner, Hancock Energy. Both companies will invest AUD 650 million (approximately KRW 600 billion), with POSCO Inter participating in the capital increase at AUD 326 million (approximately KRW 300 billion) according to its 50.1% stake.

A POSCO Inter official explained that this investment aims to establish an annual production system of 60 petajoules (PJ, an international energy heat measurement unit) by 2026. Sixty petajoules correspond to the production of 1.2 million tons of LNG. The approved investment funds will be used to drill additional gas wells and build gas production facilities such as gas processing plants and pipelines.

Senex Energy employees are inspecting the equipment.
[Photo by POSCO Inter]

Senex Energy is an energy company producing and developing natural gas in the eastern region of Australia. It became a subsidiary of POSCO International in April 2022 and has since steadily increased its operating profit. A POSCO Inter official stated, "By 2026, when the increased gas production is supplied to the eastern region of Australia, Senex Energy is expected to generate sales exceeding KRW 600 billion annually, contributing to the parent company's profits."

Senex Energy is focusing not only on increasing production from existing gas fields but also on securing additional reserves by drilling exploration blocks it holds. In July this year, drilling is planned at the Rockybar exploration block in eastern Australia, where it holds a 50% stake in the Range appraisal block.