News

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.

Hancock’s offer now unconditional and Warrego shareholders who accept will be paid CASH

23 December 2022.

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’’.

Hancock receives unsolicited statements from 16% of Warrego shareholders to accept its cash offer

21 December 2022.

Rinehart hits back in battle for Warrego

Gina Rinehart has hit back in the takeover battle for Warrego Energy and cast doubt on rival Strike Energy’s capacity to fund its onshore gas ambitions in the Perth Basin. Mrs Rinehart’s Hancock Energy maintains its all-cash 28¢ per share takeover offer for Warrego is superior to a revised bid lobbed by Strike on MondayHancock, which has pointed to a near $18 billion cash war chest to fund a Warrego takeover, other acquisitions and project developments, warned Strike would need to go deep into debt under its “high risk” Perth Basin plans.