Senex Energy will sell its Roma North natural gas processing facility and pipeline for $50 million.
It has made the deal with energy infrastructure operator Jemena and entered into a long-term gas tolling agreement.
Senex began construction of the Roma North gas processing facility and pipeline in November 2018.
Roma North, about 30km north of Roma, is part of Senex’s Western Surat Gas Project.
Construction has been completed on-time and on-budget, with commissioning now underway.
Under the terms of the agreements announced today, Jemena will take ownership of the facility and pipeline on the achievement of agreed performance tests, expected in September.
Jemena will then process and transport natural gas from Senex’s Western Surat developments to market under a long-term gas tolling arrangement.
Proceeds from the sale will support the continued development of Senex’s Surat Basin natural gas developments and other growth projects.
“With low-cost expansion options designed into the facility and very competitive long-term tariff arrangements, this transaction will accelerate efficient recovery of Senex’s material gas reserves from Roma North and the broader Western Surat acreage,” Senex managing director and chief executive officer Ian Davies said.
“Together, Senex and Jemena continue to deliver innovative and flexible solutions to bring more gas to the east coast market at prices that make sense for both producers and customers.”