Gina Rinehart, Australia’s wealthiest individual, is spearheading a resurgence in the country’s oil and gas sector, mirroring a similar trend observed in the United States. With a fortune estimated at $30 billion, Rinehart is leveraging her considerable resources to expand Hancock Prospecting, her family’s mining company, into a major natural gas player through a newly established division, Hancock Energy. This strategic expansion focuses on acquiring key assets and establishing partnerships to solidify Hancock’s position in both the east and west coast gas markets.
On Australia’s east coast, Hancock Energy has partnered with South Korean steel giant Posco, each holding a 50% stake in Senex Energy. This joint venture positions Hancock to capitalize on the growing demand for natural gas in the region. However, it is on the west coast where Rinehart’s ambitions are truly taking shape. Through a series of calculated acquisitions, she is consolidating control over the historic Perth Basin, a region ripe for revitalization using modern exploration and production techniques.
Rinehart’s west coast strategy began with the acquisition of Warrego Energy, securing a 50% interest in the promising West Erregulla gas discovery. This acquisition effectively blocked fellow Australian billionaire Kerry Stokes, owner of Beach Energy, from gaining full control of the asset. Rinehart has subsequently set her sights on acquiring Strike Energy, owner of the remaining 50% stake in West Erregulla. The recent resignation of Strike’s long-term CEO, Stuart Nicholls, coupled with a strategic review announced by the company’s board, suggests an impending acquisition by Hancock Energy. Further solidifying her position in the Perth Basin, Rinehart acquired the gas assets of Mineral Resources for $750 million, capitalizing on the company’s financial difficulties.
The acquisition of Strike Energy would grant Rinehart substantial control over the Perth Basin, a region with a 50-year gas production history. Modern exploration technologies are now revealing previously inaccessible deep reservoirs, offering significant potential for increased gas production. Similar to her east coast strategy of partnering with Posco, Rinehart appears poised to forge a strategic alliance on the west coast, potentially with Japanese conglomerate Mitsui & Co. Mitsui is already a partner with Stokes in the adjacent Waitsia gas project, and Rinehart’s strong relationship with Sam Walsh, chairman of Mitsui’s Australian operations, suggests a potential collaboration.
The connection between Rinehart and Walsh dates back two decades, when Walsh, then head of Rio Tinto’s iron ore division, negotiated a crucial 50/50 joint venture with Rinehart that paved the way for the development of her first iron ore mine, Hope Downs. This history of successful collaboration, coupled with Rinehart’s preference for joint ventures and the potential for accessing higher-priced international gas markets through Mitsui’s existing export agreements, makes a partnership highly likely.
While the acquisition of Strike Energy remains the immediate focus in Australia, Hancock Energy is also exploring international expansion opportunities, particularly in the United States. A delegation of Hancock executives, including Hancock Energy head Stuart Johnson, is currently in the U.S. assessing investment prospects. Rinehart’s recent attendance at events surrounding President Trump’s inauguration further underscores her interest in the U.S. market. She has publicly expressed her admiration for Trump’s policies, particularly his focus on deregulation and reducing bureaucracy, viewing the U.S. as a promising investment destination. This suggests that Hancock Energy’s growth strategy is not confined to Australia but encompasses a global vision, with the U.S. emerging as a key target for future investments.
