Senex Energy, a subsidiary of the South Korean company POSCO International, has signed seven long-term gas contracts totalling about 133 petajoules worth of supply with several companies in Australia, including AGL, the largest power generation company in Australia, as well as Engie, BlueScope, Liberty Steel, Visy, EA and Orora.
The 133 petajoules of natural gas is equivalent to about 2.5 Mt of LNG production, meeting around 25% of the annual gas demand in the eastern region of Australia. The contracts will span a maximum of 10 years, starting in 2025.
POSCO International, together with its partner Hancock, has invested AUD 300m (about US$200m) in its Australian subsidiary Senex Energy to expand large-scale gas processing facilities. Senex Energy's production capacity is expected to expand to 60 petajoules by the end of 2025, triple the current level.