Posco International, the trading and energy arm of Posco Group, announced Monday that its local subsidiary has completed the first gas processing plant in Queensland, Australia.

In April 2022, Posco International acquired Senex Energy together with Hancock Prospecting. It aims to triple Senex's annual natural gas production from 20 petajoules to 60 petajoules, enough to produce approximately 1.2 million metric tons of liquefied natural gas.

Senex Energy has initiated commissioning tests for the plant and pipelines, which will continue into the second quarter of next year. The company said the new facilities will play a role in removing impurities from the gas, compressing and transferring it for distribution to power plants and city gas networks in eastern Australia.

In June, the Australian Competition and Consumer Commission released a report warning of potential gas shortages in eastern Australia, possibly as early as 2027. To address this issue, Senex Energy has signed with eight clients to supply a total of 151 petajoules of gas over the next decade.

At the ceremony, Queensland Senator and Shadow Minister for Resources Susan McDonald stated, “Eastern Australia urgently needs increased gas production to ensure a stable power supply, reduce energy costs and create jobs.”

Lee Kye-in, president and CEO of Posco International, added, “Today’s event shows the potential of Senex Energy to become a leading energy company in Australia. We will keep supporting our subsidiary so that it can successfully expand the gas production.”

Senex plans to drill 280 production wells and construct new facilities to boost gas production through the end of next year. It will commence operations at its second and third gas plants, with the goal of meeting over 10 percent of eastern Australia's domestic gas demand by 2026.