Giant Korean steel producer Posco will buy out oil and gas producer Senex Energy for $900 million in a deal the South Korean listed company says is key to its global blue hydrogen plans and “low-risk”, given the high demand for gas in the tight Australian east coast market.

Posco will acquire Senex’s Atlas and Roma North operations in Queensland’s gas fields for $4.60 per share and has plans to cut Gina Rinehart’s Hancock Energy in for 49.9 per cent of the equity, although that’s a separate deal between bidder and co-investor.