POSCO International acquires 50.1% stake in Senex to develop gas field in Queensland

By Lim Chang-won Posted : December 10, 2021, 18:06 Updated : December 10, 2021, 18:06

[Courtesy of POSCO]

SEOUL -- POSCO International, a trading arm of South Korea's steel group POSCO, teamed up with a local partner to develop a land gas field being explored by Australia's Senex Energy in Queensland.

Through a joint investment contract with Hancock Energy, POSCO International will hold a 50.1 percent stake in Senex Energy for 372 billion won ($315 million). Hancock Energy will control 49.9 percent. In a regulatory filing on December 10, POSCO International said the acquisition of shares will be completed on March 31, 2022.

Senex operates exploration permits covering more than 70,000 square kilometers in South Australia and Queensland. If a foreign entity wants to buy 20 percent or more of an Australian company, it needs to get state approval. 

Hancock and Posco have invested together in Roy Hill's iron ore mine. POSCO holds 12.5 percent of Roy Hill, which is involved in an iron ore mining project in the Pilbara region of Western Australia, and imports 16 million tons of iron ore annually. The Roy Hill mine is Australia's largest single mine, with an iron ore reserve of 2.3 billion tons.

POSCO International has been involved in gas projects in Myanmar, an important natural gas producer in Asia, and delivers natural gas to China through a Myanmar-China gas pipeline. The company has disclosed plans to expand its natural gas business to other Southeast Asian countries and Australia.
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