POSCO INTERNATIONAL, under the leadership of CEO Lee Kye-In, has achieved a significant milestone in its natural gas expansion efforts in Australia through its subsidiary, Senex Energy. The company marked the completion of Gas Processing Facility Unit 1 at the Senex Energy Atlas Gas Field in Queensland with a ceremony held on November 24th. The event was attended by notable figures, including Susan McDonald, Australian senator and shadow minister for Resources, as well as Gina Rinehart, executive chairman of Hancock Prospecting, and other Australian government officials.
Strategic Production Expansion
In 2022, POSCO INTERNATIONAL acquired Senex Energy in partnership with Hancock Prospecting, announcing plans to triple its annual natural gas output from 20 petajoules to 60 PJ. This expanded production equates to approximately 1.2 million tonnes of liquefied natural gas.
Located in eastern Australia, where energy demand is concentrated, Senex Energy is positioned to play a critical role in stabilising the region’s energy supply. According to the Australian Competition and Consumer Commission, eastern Australia faces a potential gas supply shortage as early as 2027.
To address this challenge, Senex Energy secured long-term gas supply contracts in 2023 with eight buyers for a total of 151 PJ of gas, ensuring both profitability and a contribution to alleviating the anticipated domestic supply gap.
New Facility Enhances Gas Infrastructure
The newly completed Gas Processing Facility Unit 1 is a pivotal component in Senex Energy’s production expansion. It processes natural gas by removing impurities, compressing it for high-pressure transport, and delivering it through pipelines to power plants and city gas networks across eastern Australia.
The facility’s completion underscores the steady progress of POSCO INTERNATIONAL’s production expansion project. Alongside the processing facility, the project includes drilling 280 production wells, constructing two additional gas processing facilities, and building gas pipelines. All components are on track for completion by the end of 2025.
Key Milestones Ahead
The test operations of Gas Processing Facility Unit 1 and its pipelines are slated for completion by the second quarter of 2025, with gradual sales of expanded gas production to follow. Gas Processing Facility Units 2 and 3 are scheduled to commence operations in the latter half of 2025, ensuring seamless execution of the company’s ambitious growth plans. By 2026, the increased supply is expected to meet over 10 percent of eastern Australia’s domestic gas demand.
Leadership Comments on Progress
During the ceremony, Senator Susan McDonald highlighted the critical importance of stable energy supplies and investment in domestic gas production. “Eastern Australia urgently needs a stable power supply, reduced energy costs, and job creation. Senex Energy is leading the way by bringing gas resources to the domestic market. This requires more exploration permits and larger investments,” she stated.
CEO Lee Kye-In of POSCO INTERNATIONAL expressed confidence in the progress, saying, “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.”
Supporting Australia’s Energy Future
As part of its broader strategy, POSCO INTERNATIONAL is committed to enhancing energy infrastructure and meeting growing energy needs. The completion of Gas Processing Facility Unit 1 represents a key step in its journey toward bolstering Australia’s domestic energy security while supporting economic growth through job creation and stable power supply.
For more information visit www.posco.com
