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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.

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.

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.

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.

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.