Enduring Supply
POSCO International, which has announced its takeoff to become an eco-friendly energy giant, seems to be increasing its scale in all stages of the LNG business from exploration and production to supply.
Australian natural gas (LNG) company Senex Energy, a subsidiary of POSCO International in Australia, recently struck seven natural gas supply deals totaling about 133 petajoules with local companies including AGL, Australia’s largest power producer, Bluescope, Liberty Steel, and Aurora, according to industry sources on Aug. 10. The amount can be used to produce approximately 2.5 million tons of LNG, or 25 percent of the annual gas demand in eastern Australia.
By sealing these deals, Senex Energy secured a long-term revenue structure for 10 years from 2025 while laying the foundation for expanding its eco-friendly energy conversion business such as green hydrogen.
POSCO International acquired a 50.1 percent stake in Senex Energy in 2022 to secure its management control, and then absorbed POSCO Energy earlier this year. As a result, the company now has a business structure spanning from exploration to production, storage, and power generation.
In particular, POSCO International is accelerating the expansion of LNG terminals and the development of new gas fields to strengthen its LNG value chain.
Senex Energy is running two onshore gas fields in eastern Australia. In addition, POSCO International, along with its partner Hancock, has been expanding its gas processing facilities by investing 300 million Australian dollars (US$196 million) in Senex Energy since 2022. The completion of the expansion of gas processing facilities at Atlas and Romanos Gas Fields in Australia will boost Senex Energy’s production capacity to 60 petajoules, triple the current level, by the end of 2025.
POSCO International is also planning to bring up to 400,000 tons of LNG produced there to Korea for energy security.