South Korean steelmaker POSCO has announced that it will increase its natural gas production in Australia through its energy subsidiary Senex Energy.
According to its statement, the Korean producer and Australia-based Hancock Energy, which holds a 49.9 percent stake in Senex Energy, will invest a total of about KRW 600 billion ($436.82 million) in the company. Senex will use funds to drill additional gas wells and to build gas production and processing facilities along with pipelines. As a result, POSCO’s subsidiary will be able to produce 1.2 million mt of liquified natural gas (LNG) per year from 2026.
Previously, the Australian government had emphasized the importance of natural gas in carbon neutrality by 2050.
Also, Senex Energy has inked long-term gas supply contracts with Australia’s largest energy company AGL, Australian steelmaker BlueScope, and Liberty Steel.