News
War of the billionaires for Perth Basin gas heats up
Gina Rinehart, the nation’s richest person, has waived all conditions in her bid to buy Western Australian gas explorer Warrego Energy, a move she hopes will lock in the support of key shareholders amid a takeover tussle with rival suitor Strike Energy. Hancock Energy, the energy arm of the mining billionaire’s privately owned Hancock Prospecting , on Friday said its 28¢-a-share cash bid for ASX-listed Warrego and the prized 50 per cent interest it holds in a promising onshore gas basin north of Perth was now unconditional “with immediate effect”.
Atlas gas project job hiring put on ice
RECRUITMENT for more than 370 jobs, new investment and future contracts related to Queensland’s $1bn Atlas expansion project – aimed at boosting east coast supplies – will be put on ice until the outcome of the Albanese government’s consultation on its new gas price cap rules. Senex Energy, which is jointly owned by South Korean giant POSCO International and Gina Rinehart ’s Hancock group, announced the decision on its website, in response to the passing of the energy price relief bill earlier this month. New laws passed by the Albanese government “that could arbitrarily dictate investment returns” for gas producers puts its investment at risk and would result in less gas, electricity shortages, fewer jobs and weaker regional communities that rely on the resources sector, Senex warned.
Gas price cap threatens Senex investment plans
Energy major Senex Energy has warned that the federal government’s cap on gas prices placed its A$1-billion expansion plans at risk. “While Senex supports measures to provide relief to Australian households and businesses from rising energy prices, this legislation goes much further and now challenges the commercial rationale for investing in future gas supply projects because the company can now be required to accept an arbitrary return determined by others, and after the investment is made.
Crackdown puts gas on backburner
Future gas and LNG projects valued at $32bn are under threat of having investment stalled or pulled under the Albanese government’s “hostile attitude to Australia’s resources sector” after the Gina Rinehart-backed Senex paused its $1bn Surat Basin expansion. Senex has left open the possibility of returning to the $1bn expansion if the federal government rethinks its gas industry plans. However, it has paused recruitment and spending on long lead items “pending the outcome of the Albanese government’s mandatory code of conduct consultation process” on February 7.
POSCO’s Australian arm Senex Energy suspends $671 mln Queensland gas project expansion
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. “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.
‘Impossible’: Rinehart, Posco stall $1b Queensland gas project
A $1 billion gas project that had attracted interest from customers wanting more than five times the volume of gas initially on offer is on hold after its owners, including billionaire Gina Rinehart, declared the government’s intervention in the gas market made it “impossible” to sign up to new gas sales contracts. The stalling of Senex Energy’s $1 billion Atlas gas project in Queensland is the most serious sign yet of the fallout from the Albanese government’s stricter-than-expected controls over east coast gas to try to rein in energy prices for struggling manufacturers and households.
Hancock Energy reveals backing of key Warrego investors for its cash offer
Gina Rinehart’s Hancock Energy says it has secured the support of a list of Warrego shareholders for its 28¢-a-share cash bid for the junior gas play. Hancock lodged its fourth supplementary bidder’s statement on Wednesday, which outlined a list of supportive Warrego investors.
HANCOCK WARNS WARREGO INVESTORS
Gina Rinehart’s Hancock Energy has warned investors in its takeover target Warrego Energy that they face management and share price risks if they choose to accept a rival bid from Strike Energy. Hancock said taking up Strike’s offer would open shareholders up to risks around potential future funding challenges which “are likely to include substantial funding that is not in place for key developments and onerous debt arrangements’’.
