November 27, 2024

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A gas drilling site operated by Senex Energy in Australia (Posco International)

Posco International, a trading and energy firm under Posco Group, said Thursday that its Australian subsidiary Senex Energy has signed seven consecutive supply deals for natural gas with multiple international companies.

Senex Energy has agreed to provide some 133 petajoules of natural gas -- an amount that can produce about 250 million metric tons of liquefied natural gas -- to seven companies, including Australia's leading energy firm AGL Energy, Australian steel supplier BlueScope Steel, UK-headquartered metal company Liberty Steel and Australian packaging manufacturer Orora.

With supply set to start in 2025, the contracts extend for 10 years, providing a big boost to Senex Energy’s profitability.

The company said the new deals recognize Senex Energy as a stable supplier for global firms amid the increased demand for natural gas to reduce carbon emissions.

The company added that together with its local partner Hancock Energy, it aims to invest 300 million Australian dollars ($196 million) in Senex Energy.

Once the ongoing construction of gas treatment plants in the gas fields Atlas and Roma North is completed, Senex Energy can expand its gas production to 60 petajoules, three times the current amount, by the end of 2025.

Posco International said it is also planning to bring a certain amount of LNG produced in Australia to South Korea -- up to 400,000 tons per year from 2025.

The company acquired a controlling interest in Senex Energy in April last year, owning 50.1 percent of its shares.

By Mun So-jeong (munsojeong@heraldcorp.com)