POSCO's Australian arm Senex Energy suspends $671 mln Queensland gas project expansion

Posco International

22/12/2022 01:47

Dec 22 (Reuters) - South Korean steel giant POSCO
International Corp's  047050.KS   unit Senex Energy said it
would suspend its A$1 billion ($671 million) investment plan of
its Queensland gas project amid the Australian government's
efforts to quell surging energy prices. 
    In August, Senex announced plans to expand its Atlas and
Roma North natural gas projects in Queensland's Surat Basin. The
project could have increased the company's annual production by
60 petajoules (PJ) per year, representing more than 10% of
annual east coast gas demand, Senex said.  
    "This will result in less gas, electricity shortages, fewer
jobs and weaker regional communities that rely on the resources
sector," Senex, the energy firm which is 50.1% owned by POSCO
International, said in a statement on Thursday. 
    Over the past six months, Australia's labour government has
taken extraordinary measures to beef up gas supply and lower
coal, gas, and power prices, which soared following Russia's
invasion of Ukraine. 
   "Because these changes have been brought on so rapidly, we
believe our investments are under question until we see the
outcome of consultations and the final form of the mandatory
Code of Conduct and new laws," said Jhoon So Jho, chair of Senex
and vice-president of POSCO.  
    The country's gas industry lobby group, the Australian
Petroleum Production & Exploration Association (APPEA), said the
government's reforms had dealt a blow to the new east coast gas
supply and future energy security. 
($1 = 1.4903 Australian dollars)
 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Rashmi
Aich)
 ((Tejaswi.Marthi@thomsonreuters.com;))