News

SANTOS confirmed late yesterday the Barossa field would supply backfill gas the Darwin LNG plant it shares with ConocoPhillips, announcing it had entered exclusive commercial negotiations period in order to reach a processing services agreement and settle on a tariff. 

Santos expects a final investment decision next year.  

Barossa entered front-end engineering and design in April last year, and last month Santos announced the contract to supply the subsea production system and associated installation support had been awarded. 

"This exclusivity confirms the confidence we had to commit to long-lead items last month and maintain project schedule to deliver gas to DLNG as early as possible," Santos managing director and CEO Kevin Gallagher said.  

"Clearly, it also confirms Barossa's status as the lead candidate for the supply of backfill gas to Darwin LNG. 

"Bids have also been received and are being evaluated for the FPSO, gas export pipeline and development drilling. We're getting on with the job." 

Barossa is 300km north of Darwin, and will replace the declining Bayu-Undan field in feeding the plant. That oil and gas field is one of Timor-Leste's main sources revenue.  

Eni's Evans Shoal field was another candidate for DLNG backfill though most have long though Barossa would eventually be chosen.  

The Barossa joint venture is made up of operator ConocoPhillips (37.5%), SK E&S (37.5%) and Santos (25%) and Darwin LNG of ConocoPhillips (57% and operator), Santos (11.5%) Inpex (11%) Eni (11%) and Tokyo Timor Sea Resources (10%).  

The plant is expected to be offline for 18 months or more once Bayu-Undan ceases production and Barossa comes online with a probable start up around 2024. 

SANTOS announced today an expansion to its money saving solar plans as its South Australian Port Bonython processing plant, which processes natural gas liquids and crude oil piped from the Moomba plant for export, switched on a 2.12 megawatt solar farm. 

AGL Energy performed the engineering, installation and connection.  

The project will generate three gigawatt hours of power a year, and save Santos 6% of its current electricity use.  

"This solar installation at Port Bonython is our biggest demonstration yet of how we can work with renewables to not only reduce our carbon emissions but to also free up more gas for the domestic markets," managing director and CEO Kevin Gallagher said.  

"As a large industrial user of electricity, we're also doing our bit to reduce the burden on the grid by generating new supply." 

This follows from the battery announcement Santos made with Darwin LNG joint venture partner ConocoPhillips, which is designed to reduce emissions by 20% from the plant as it cuts its fuel gas use.   

The company is still looking at converting its full fleet of Cooper Basin beam pumps to solar for around $50 million, and has also spent $10 million on a closer look at carbon capture and storage.  

"In the Cooper Basin alone we consume for fuel an equivalent of 5% of the east coast market, that's a lot of gas and we're very focussed on freeing that up," he said during a panel discussion on the third day of the conference.  

"It's not just the Cooper, the fuel consumption of our LNG plant is not that dissimilar," he said. 

Rystad Energy's Gero Farrugio presentation at APPEA suggested oil majors in Australia are jumping on the ‘solar coaster', hoping to replace the 15% of gas currently used for infield power with renewables.  

Farrugio put a $70 million figure on possible savings.  

"In Western Australia, we're replacing existing power generation turbines at our Devil Creek plant with more fuel-efficient ones - not only reducing emissions by more than 25% but also generating Australian Carbon Credit Units as a registered project with the Emissions Reduction Fund," Gallagher said today.  

"These initiatives are steps along the way to achieving our goal of net-zero emissions by 2050." 

CSIRO GISERA release report on wet season baseline methane monitoring in the Beetaloo Sub-basin

CSIRO GISERA (Gas Industry Social and Environmental Research Alliance) has published its third milestone report following its final round of wet season baseline methane monitoring in the Beetaloo Sub-basin.

CSIRO GISERA was engaged by the Territory Government to undertake baseline monitoring of methane concentrations prior to the grant of any exploration permits. This is in line with recommendation 9.3 from the Final Report of the Independent Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

This milestone report presents the findings of the third methane baseline surveys, which was conducted during the Northern Territory wet season between 30 January and 5 February 2019.

Previous surveys were conducted during the dry season in July and August 2018, and during the fire season in November 2018. Each of the reports is available on the GISERA website.  A Final Report of the baseline survey activity will be completed by CSIRO GISERA in the coming weeks

As with previous surveys, this survey was conducted using two gas analysers mounted in a four-wheel-drive vehicle. The vehicle covered about 4,050 km on roads and tracks which were accessible in the wet season conditions.

Methane concentrations were found to be mostly similar to natural concentrations with an average of 1.84 parts per million. No elevated atmospheric methane emissions were detected near abandoned petroleum wells and water bores that were visited during the first two surveys.

Termite mounds were found to be a seasonal source of methane which contrasts with previous measurements, where no measurable atmospheric methane emissions were detected during the dry season and fire season.

This survey completes the on ground baseline methane monitoring in the Beetaloo Sub-basin for pre-exploration activities. CSIRO GISERA is expected to publish its final report later this month.

Results of these studies are important for delivering on the recommendations of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.


To read the latest from the Gas Industry Social and Environmental Research Alliance, please visit https://gisera.csiro.au/

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au

To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Code of Practice released

The Code of Practice has been released, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry. 

The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

The draft Code was out for public comment earlier this year.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including:

• Well operations
  
• Surface activities
  
• Wastewater management
  
• Methane emissions
  

The release of the Code of Practice supports the delivery of the 135 recommendations in the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Read the Code of Practice here

To read the latest from the NTG Newsroom, please visit NTG Newsroom

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au

To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

The Territory Labor Government has finalised the Code of Practice, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry, which will support Territory jobs.

The Northern Territory Government is implementing all 135 recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing. The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

A total of 29 substantive public submissions were received while the draft Code was available for public comment.

In response to public submissions, the Code has been revised to make it clear that enclosed tanks are required to be used to store wastewater. The Code has also been made clearer regarding wastewater treatment, evaporation, transport and disposal requirements.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including: 

• Well operations

• Surface activities

• Wastewater management; and

• Methane emissions.

Development of the Territory’s onshore petroleum industry has the potential to generate significant investment in the local economy and create local jobs.

Following the approval of environment management plans, civil works are commencing in the Beetaloo basin, in accordance with the Code of Practice. Copies of approved environment management plans will be available to be viewed here: https://denr.nt.gov.au/environment-information/onshore-gas-in-the-northern-territory/environment-management-plan

Quotes from Minister for Primary Industry and Resources, Paul Kirby:

“With this new Code of Practice, our Government is delivering strong and clear regulation to protect the environment, give certainty for investment, and meet community demands.

“Our Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable.

“We expect to see exploration this dry season – so long as the companies have met all the requirements that they need to meet.”

Quotes from the Minister for Environment and Natural Resources, Eva Lawler:

“The Territory’s natural environment is one of our best assets and a huge part of what makes living here so special. Protecting the environment creates jobs — good environmental policy, is smart economic policy.

“We are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines for how the environment must be protected.”

“These reforms will strengthen governance and accountability for environmental decisions, providing greater certainty for business and the community.”

Media contacts: Carl Pfeiffer 0417 910 720 (Minister Kirby), Ellie Clancy 0436 646 689 (Minister Lawler).

Shell, along with its Joint Venture Partners INPEX, KOGAS and OPIC, today announced that the first shipment of Liquefied Natural Gas has sailed from Shell’s Prelude Floating Liquefied Natural Gas (FLNG) facility located 475kms North East of Broome in Western Australia. This shipment will be delivered by the Valencia Knutsen to customers in Asia.

Maarten Wetselaar, Integrated Gas and New Energies Director said: “Today’s first shipment of LNG departed from Prelude FLNG, safely. Everyone involved should be very proud of the work taken to reach this important milestone.

“Prelude forms an integral part of our global portfolio and plays an important role in meeting the growing demand for more and cleaner energy for our customers around the world.”

Zoe Yujnovich, Chairman Shell Australia said: “Prelude FLNG combines human endeavour and ingenuity from across the globe and here in Australia. We are proud to work with our local communities, suppliers and partners to ensure its safe, reliable operations into the future.”

www.shell.com.au/prelude

A message from Smart Energy NT:

SmartEnergy NT Action Alliance

3pm- 6.00pm Thursday June 20

ABB, 54 Export Drive East Arm Berrimah

If you would like to attend please go to Sticky Tickets to register. www.stickytickets.com.au/87616

We are please to advise that in conjunction with Environment Centre NT we will be having the public launch of the Beyond Zero Emissions Report: "The 10 Gigawatt Vision: How renewable energy can power jobs and investment in the Northern Territory", Speakers Eytan Lenko and Vanessa Petrie - BZE. Following the presentation we will be forming the four groups listed below to work on projects to achieve our goals.

SmartEnergy NT Policy Group will be formed to explore ways to achieve our goals and then create policy suggestions and form alliances with like minded groups such as RepowerNT. This Group will be led by Alan Langworthy who was the chair of the Roadmap to Renewables committee.

SmartEnergy NT Technical Group will be created to search the world for technical solutions to create stronger grids and microgrids with the goal of producing technology the will assist us in the NT and give us the opportunity to export the technology elsewhere in Australia and overseas.

We are fortunate to have a wonderful facility which specialises in Microgrids for ABB right here in Darwin with research and testing facilities which are world glass. This group will be led by Juergen Zimmermann from ABB who is a passionate Territorian who has the strong technical knowledge to lead this group.

SmartEnergy NT Hydrogen Group will be formed in response to the strong interest shown following our event on April 10 when the Chief Scientist for Australia, DR Alan Finkel, spoke on the medium and long term opportunities for hydrogen in the NT.

With Japan and Korea already committed to becoming Hydrogen economies and our gas already being exported to these countries the NT is in an ideal position to produce Green Hydrogen (fully renewable generated) to these countries and others. On the local scene it was agreed there are opportunities to develop ‘inspirational’ and development Hydrogen project here now. This could be particularly so where high cost diesel is the present way to generate power.

Repower NT Working Group to advocate for the recommendations within the BZE report and to work with the 3 other groups to create a powerful voice for the 10 Gigawatt Vision.

Join Now – Everyone Welcome – Help make a difference

You can now join the SmartEnergy NT Action Alliance and become part of the solution to develop practical ways to build our solar and Smart Energy footprint. This will allow business and consumers to reduce their power cost and facilitate smarter ways to integrate solar energy with the grid. You can join the SmartEnergy NT Action Alliance for as little as $100 by going to https://smartenergynt.com.au/membership/

For further information please call Geoff Goodrich on 0419 906524 or email geoff.goodrich@smartenergynt.com.au

INDONESIA’s government and Japan’s Inpex Corp have finally come to an agreement over the Abadi gas field in the offshore Masela block, making way for potential development of the project some two decades after the field was first discovered.

In a statement on Monday, the Indonesian Ministry of Energy and Mineral Resources said it had come to the historic agreement with Inpex earlier this month and had agreed on a final plan of development framework.

Both parties succeeded in achieving the "win-win solution" through a profit-sharing scheme, in which the government received at least 50%.

"Finally Inpex and SKK Migas agreed on the main points of the development of the Masela block… this discussion has been going on for 18 years," Minister for Energy Ignasius Jonan said. 

"The investment value is between US$18-US$20 billion with fair distribution for the Republic of Indonesia and contractors."

Capital expenditure on the deepwater Masela discovery is expected to reach US$20 billion.

Development of the field will involve a floating facility with a processing capacity of up to 6.8 million tonnes of LNG per annum.

Read more here

Source: Energy News Bulletin

SOCIAL license to operate was again a theme of last week’s APPEA conference and this year the industry organisation seems to have moved a little further along the way, with a new marketing division and a CEO happy to engage with activists. 

To that end new APPEA CEO Andrew McConville, who replaced Malcolm Roberts two months ago, told Energy News he is "absolutely happy to" meet with activists groups, including the anti-fraccing group and stalwart onshore industry critic the Lock the Gate Alliance, which sent a small coterie of protesters to the first day of the conference.  

"Whether that's an olive branch or a handshake…  but to sit down with these guys and have a conversation," he said.  

"It's not just enough anymore for APPEA to be a policy organisation. We have to engage in the right way with the voices that might be different to ours."  

Lock the Gate has driven strong opposition to Santos' Narrabri CSG project in New South Wales. Santos' managing director Kevin Gallagher used much of his address spruikng Narrabri to a packed room full of the sympathetic, suggesting again the proejct could supply 50% of the state's gas needs, with much of that going to manufacturers.  

The organisation this morning accused Strike Energy of covertly planning to frac its West Erregulla-2 well in the Perth Basin, despite the company repeatedly reiterating it was after conventional gas, hoping to prove up the Waitsia trend discovered by AWE's huge 2017 Perth Basin find in its own acreage.  

"If you take Lock the Gate, they obviously have concerns about land access," McConville told Energy News.  

"We have  a framework… we've recently agreed on some principles with the National Farmers Federation, which is supported by Agforce  and New South Wales farmers and others."  

"Is that something where we can sit down and say, well ok, how far apart are we?  That would be a good example with an outcome that might be negotiated."

Read more here

Source: Energy News Bulletin

Onshore Shale Gas Community and Business Reference Group tenure extended by Chief Minister

The Onshore Shale Gas Community and Business Reference Group (Reference Group) met in Darwin last week to consider the suite of regulatory reforms and provide feedback on the overall progress to date of the implementation of recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Initially appointed for a period of 12 months, the Reference Group performs a vital role in providing a platform through which key stakeholders can communicate their views about the implementation framework and its subsequent execution directly to the Government.

Meeting four times a year, the 17 member Reference Group includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government.

Acknowledging the important role the Reference Group plays in ensuring implementation plan progress aligns with community and industry expectations, the Chief Minister has extended the term of the Reference Group for a further 12 months, inviting all members to continue in their current capacity as a Member until June 2020. The next meeting will be held in August 2019.

A number of speakers gave presentations to the group, including:

• The Independent Officer overseeing implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing, provided his assessment of the progress of the Implementation Plan, acknowledging the significant regulatory reform achieved to date, including transfer of regulatory responsibility under the Petroleum Act 1984 from the Minister of Primary Industry  and Resources to the Minister of the Environment and Natural Resources;
• Department of Primary Industry and Resources provided an update on the implementation of Recommendation 14.4, Declared Reserved blocks under the Petroleum Act 1984. The Consultation Paper: Proposed reserved blocks (no-go zones) for petroleum activities in the Northern Territory may be accessed here. Have your say on proposed no go zones here
• Department of Environment and Energy (Commonwealth Government) discussed the Commonwealth approach to environmental assessments under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act).

A communique from the meeting has been published and is available here

The chair of the CBRG can be contacted via email at Cbreference.group@nt.gov.au

A booklet, Preparing for Exploration: Changes to the Regulation of the Northern Territory’s Onshore Petroleum Industry is available here

Read Dr Ritchie’s letter to the Chief Minister on implementation progress here

For more information or to track implementation progress of the recommendations made by the Inquiry, visit www.hydraulicfracturing.nt.gov.au