Bloomberg Senex to invest $1 billion to boost gas production in Australia

A $1 billion, $707 million will be invested by Bloomberg Senex Energy Ltd., controlled by Posco and billionaire Gina Rinehart, to produce more natural gas in Queensland amid concerns from Australian authorities over a potential shortfall of the fuel.

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The expansion of the Atlas and Roma North projects in the Surat Basin will bring the supplier's annual output to 60 petajoules a year by 2025 and deliver additional fuel into the domestic market within two years, according to a statement by Brisbane-based Senex on Thursday.

The company didn't specify the size of the expansion of Queensland, but it said in a filing last year that overall production would be as much as 23 petajoules through June 2022.

A rough winter, breakdowns and closures at aging coal plants, and a global fuel shortage triggered a dramatic power supply crunch in Australia in June, even though it is a major coal and natural gas exporter. Canberra wants to extend powers that would allow it to impose emergency export controls on eastern areas, because regulators have warned of a shortfall in gas supply next year.

See also: Top LNG Exporter Australia Is Told to Keep More Fuel At Home

The recent electricity crisis shows that natural gas is essential to provide secure and reliable energy for Australians, and is needed to underpin renewables and replace aging coal generation, Senex Chief Executive Officer Ian Davies said in the statement.

New gas projects are a topic of debate over climate action in Australia. Prime Minister Anthony Albanese, who has strengthened the nation's emissions reduction targets, has faced some criticism over his rejection of a moratorium on new coal and gas developments.

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