South Korea’s Senex Energy Ltd., a subsidiary of POSCO International Corp., has signed seven long-term gas supply contracts in Australia, raising expectations that they will contribute to the stability of the gas supply chain in the country.

Senex Energy announced Thursday that it signed natural gas supply contracts with seven Australian companies, including power giant AGL Energy Ltd.

Senex Energy is a natural gas producer that operates two onshore gas fields in eastern Australia. POSCO International holds a 50.1 percent stake in the company.

Senex Energy posted an operating profit of 63.3 billion won ($48.14 million) in the year after being integrated into the POSCO Group in 2022.

Under the latest deals Senex Energy will provide 133 petajoules of natural gas, which is enough to produce about 2.5 million tons of liquefied natural gas (LNG). Sales are analyzed to be worth more than 1 trillion won. It will be supplied over 10 years from 2025.

“The long-term natural gas supply contracts of Senex Energy came as Australian companies are actively securing natural gas to reduce carbon emissions,” said an official from POSCO International. “The increased demand was matched with Senex Energy‘s stable supply capacity.”

Recently, POSCO International invested approximately 260 billion won in Senex Energy in response to the expanding demand for natural gas.

The investment is being shared with partners to expand the gas processing facility. Upon completion in 2025, Senex Energy’s annual production capacity will triple to 60 petajoules.

POSCO International is considering transporting the natural gas produced by Senex Energy to Korea. The addition of a stable gas supply chain is expected to contribute to the country’s energy security.

“We are continuously expanding our energy territory, including by recently signing a contract with Indonesia to share the production of the Bunga gas mine,” said an official from POSCO International.

By Kim Hee-su and Choi Jieun

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