Energy Club NT News

EDL to deliver sustainable energy for Jabiru

Sonia Harvey — Mon, 15 Feb 2021 07:26:28 GMT

Leading global energy producer EDL will build, own and operate the Jabiru Hybrid Renewable Project to supply power to the remote, off-grid Northern Territory town of Jabiru.

EDL Chief Executive Officer James Harman said that the company welcomed the opportunity to work in partnership with the Northern Territory Government to deliver sustainable energy for Jabiru, as the community transitions from its mining legacy to its future as a tourism and services hub.

“EDL began more than 30 years ago with the development of the Pine Creek Power Station in the Northern Territory, and we’re very proud to continue our commitment to the Territory with Jabiru being our 100th site world-wide.

“Once completed, our hybrid renewable power station will provide Jabiru with at least 50% renewable energy over the long term, without compromising power quality or reliability,” said Mr Harman.

“We are proud to contribute to the Territory’s 50% renewable energy target by 2030 through this sustainable energy solution.”

The project will integrate 3.9MW solar generation and a 3MW/5MWh battery, with 4.5MW diesel generation to balance sustainability with reliability. Construction will begin shortly.

The diesel power station will be completed by the end of 2021, and the solar farm and battery will come online in early 2022.

Artist impression of EDL’s Jabiru Hybrid Renewable Project

Download EDL's full media release here

For more information, please contact

Vivian Lim, Head of Communications

0434306131 or vivian.lim@edlenergy.com

EDL wins contract to build hybrid power plant for Jabiru

Sonia Harvey — Mon, 15 Feb 2021 07:19:38 GMT

GLOBAL energy producer EDL has announced plans to build, own and operate a hybrid power plant for the off-grid Northern Territory town of Jabiru.

The company has won a contract to build the new power station, as the nearby Ranger Uranium Mine operated by Energy Resources Australia, which up until now powered the town, winds down.

The Territory government held a tender for energy providers to power the town with at least 50% renewables.

The project will consist of 3.9MW of solar combined with a 3MW/5MWh battery and a 4.5MW diesel generation to balance it out.

"EDL began more than 30 years ago with the development of the Pine Creek Power Station in the Northern Territory, and we're very proud to continue our commitment to the Territory with Jabiru being our 100th site world-wide," EDL CEO James Harman said.

"Once completed, our hybrid renewable power station will provide Jabiru with at least 50% renewable energy over the longer term, without compromising power quality or reliability."

Construction is expected to being shortly, with the diesel power station to be complete by the end of the year, and the solar and battery farm to be online by early 2022.

EDL has been making a name for itself in off-grid hybrid energy hubs - in December the company's Agnew Hybrid Renewable Project in Western Australia won the Engineering Solution of the Year prize at the 2020 Global Energy Awards.

The 56MW microgrid at GoldFields Agnew Gold Mine incorporates wind, solar and gas and battery storage.

Source: Energy News Bulletin

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Santos to face more climate resolutions at AGM

Sonia Harvey — Wed, 03 Feb 2021 01:36:21 GMT

SANTOS has defended the scope of its decarbonisation plans as activist shareholders lodge a resolution to compel to disclose how it will align itself with the goals of the Paris Agreement.

The resolutions, put to Santos by Market Forces, will be put to a vote when shareholders meet on April 15.

Market Forces is a group that purchases shares in major coal, oil and gas companies in order to sway shareholders to vote on climate and decarbonisation-related resolutions.

The resolution first urges for an amendment to the company's constitution to provide that members can pass advisory resolutions in relation to the exercise of powers vested in the board.

It is the third year in a row the activist group has brought a resolution of this nature before the AGM.

Previous moves were also made against Woodside and Origin Energy. While their motions have failed thus far, the vote of support has been growing each year.

This would allow shareholders to pass the second resolution which would force Santos to disclose information that demonstrates how the company's capital expenditure and operations will be managed in a manner consistent with the climate goals of the Paris Agreement.

This would include production guidance plans for the lifetime of oil and gas assets, capital expenditure plans for decommissioning and rehabilitating asset sites and how employees of the company will be informed of asset closures and employee transition plans.

"The constitution of Santos is not conducive to the right of shareholders to place advisory resolutions on the agenda of a shareholder meeting," The resolution's supporting statement reads, citing examples in the UK, where shareholders can consider resolutions seeking to explicitly direct the conduct of the board.

It also noted that at last year's AGM, 43% of shareholders voted in favour of a proposal that Santos disclose scope 1, 2 and 3 emissions targets, and exploration and capex plans aligned with Paris. BROUGHT BY ACCR?

In a statement, Santos noted it has already declared it intends to reach net-zero emissions across Scope 1 and 2 emissions by 2040, highlighting the resolutions have been requisitioned by a group representing less than 0.01% of Santos' shareholders.

"Santos does not intend to close down its oil and gas operations, as doing so would be against the interests of shareholders and would not be consistent with global climate and human development goals, particularly reducing air pollution and poverty," the company said.

Santos announced late last year that rather than pivot to electricity as other majors have, it would focus its attention to emissions-offset LNG, hydrogen and carbon capture and storage technology to reach its net-zero emissions target.

Santos CEO Kevin Gallgher told shareholders he was confident the company would soon hit the federal government's "H2 under $2" stretch goal laid out in its Technology Investment Roadmap.

It is developing its proposed Moomba CCS Project in the Cooper Basin aiming to store 1.7 million tonnes of CO2 per annum.

"Santos is already working to align our business with the Paris Agreement's central goal to limit global temperature rise this century to well below 2 degrees Celsius above pre-industrial levels," it said.

The Market Forces resolution, citing Carbon Tracker analysis, points to the company's Narrabri CSG Phase 1, Barossa LNG and Dorado Phase 1 projects, as being inconsistent with a 2C scenario, saying around US$12 billion of Santos' potential capex on upstream projects to 2030 would be stranded.

Source: Energy News Bulletin

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Empire receives 'world-class' Carpentaria-1 lab results

Sonia Harvey — Wed, 03 Feb 2021 01:18:32 GMT

BEETALOO Basin trailblazer Empire Energy has received the core results from its Carpentaria-1 well, confirming Middle Velkerri Shale targets in its EP187 have world-class rock characteristics, possibly even better than some US shale basins.

The frontier Northern Territory shale play has attracted international attention, which the Territory government hopes will turn into investment in the vast gas and liquids-rich Beetaloo and McArthur basins.

ASX listed Empire drilled its first well, Carpentaria-1, within its Beetaloo acreage last year. The relatively low-cost well yielded exciting results, hitting liquid-rich gas.

Empire sent core samples to WD Von Gonten & Co for lab analysis. This has confirmed that hydrocarbon saturation, non-clay component and total organic carbon all compare favourably to US shale basins.

It also said the estimated thermal maturity levels suggest a strong chance for liquids-rich gas production, particularly in the shallower zones.

Empire said the target formation thicknesses measured in Carpentaria-1 were large compared to the major US shale plays and comparable to the Velkerri target shale thickness in the Tanumbirini-1 well drilled by Santos next door.

Managing director Alex Underwood said the results reinforce the company's view that the Velkerri Shale has world-class potential and "could replicate the transformative positive impact the shale gas industry has had on the US economy and its energy position."

The analysis focussed on the Middle Velkerri A, Intra A/B, B and C shales, the zones Empire pegs as having the best potential for commercial gas and liquids flows.

Empire said a wider array of tests were done to allow its technical team to better understand the gas and liquid hydrocarbon content of the core samples and the corresponding rock properties. Its team is continuing to analyse the results and build them into a geotechnical model of the Middle Velkerri Shale within EP187.

Meanwhile, the company said it had engaged Netherland, Sewell & Associates to generate an updated independent prospective resource estimate for EP187 including all of the results.

The company plans to frac the discovery well in the coming weeks with flow testing to be conducted in the second quarter.

"The principal goal of our upcoming fracture stimulation and flow testing program will be to flow hydrocarbons to surface, to measure which of the four target zones is likely to be the best producer and the individual gas versus liquid hydrocarbon composition," Underwood said.

He noted the US shale experience shows every basin is unique, requiring developed approaches to drilling and completion and design, and expected this to be the case for the Beetaloo, given its geological age.

"To assist we are calling in the expertise of world-leading technical and operational experts to help us build our understanding of the resource in-house," he said.

Interest in Empire's discovery has rocketed since it published its results to date. The company has fielded calls from global petrochemical companies looking to sign offtake agreements for liquids including ethane and propane as feedstock for new plants in Darwin.

Empire said if it went down that route, it would look to sell heavier end hydrocarbons into the Asian spot market through Darwin.

The company noted it planned to reach production in a matter of years. It could reach first sales gas before 2025.

Source: Energy News Bulletin

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Beetaloo gets special mention in PM speech

Sonia Harvey — Tue, 02 Feb 2021 01:15:04 GMT

AUSTRALIAN prime minister Scott Morrison gave a special mention of the Beetaloo Sub-basin in his speech to the National Press Club yesterday.

The Morrison government released its strategic plan for development of the Beetaloo Sub-basin just last month, outlining federal commitments to bolster investment in the Northern Territory's newest gas and liquids play.

On Monday Morrison reiterated the government's commitment to the Beetaloo, saying it was part of a multi-billion-dollar package aimed at securing Australia's economy and energy security going forward.

"The Beetaloo strategic basin plan has been released, with four more coming. The pipeline market will be further improved as will liquidity of the Walumbilla gas hub. All important changes," he told the National Press Club.

"Our priorities are clear. We're investing, we're encouraging others to do the same."

Just a fortnight ago, the Morrison government published the strategic plan for the Beetaloo.

It included more than $200 million in funding, aimed at reducing investment risk and fast-tracking exploration in the region.

The government outlined four clear actions to boost investment, regulate, maximise infrastructure and open markets while boosting benefits for regional communities.

Action one focuses on "building a clear picture" of the basin and invests $1.2 million in gas development studies and infrastructure analysis.

A further $50 million was set aside to help oil and gas companies drill wells. This was announced late last year.

The second action considers regulatory processes and cuts red tape. The federal government will work with the Northern Territory Labor government to "establish bilateral agreements'' which will include a streamlined approval process.

It charges the Gas Industry Social and Environmental Research Alliance (GISERA) - a body established under the CSIRO - to provide geoscience and geological reports for industry.

A third action includes a further $173.6 million of funding for new road corridors, building on the government's previously announced package of $217 million for road development to the Beetaloo.

Finally, the fourth action allocates $1.9 million to develop a Beetaloo Aboriginal Economic Development Strategy (BAEDS).

The government has long held the Beetaloo as a basin of strategic importance. Energy minister Angus Taylor has touted the potential of the Beetaloo as an answer to Australia's domestic fuel reserve - which currently has less than a month's supply.

Source: Energy News Bulletin

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NERA establishes hydrogen clusters

Sonia Harvey — Mon, 01 Feb 2021 01:39:52 GMT

THE federal government has established 13 regional hydrogen clusters across Australia, investing A$1.85 million in an effort to create a nationwide virtual cluster to foster a globally competitive hydrogen industry.

The clusters will act as a collaborative hub for companies to share expertise and skills in order to ramp up the burgeoning industry which could increase Australia's GDP by up to A$26 billion, according to a 2019 Deloitte report.

Spearheaded by National Energy Resources Australia, the national, virtual cluster is designed to create a unique brand for Australian hydrogen and expertise and kickstart the development of hydrogen supply chains and identify gaps in development, deployment and commercialisation of new hydrogen technologies.

The regional hydrogen technology clusters, spanning across all states and territories, have been created following a seed funding selection program NERA started in September last year. NERA has also been able to leverage a range of funding commitments from state and territory governments around the country as well as funding from industry.

NERA CEO Miranda Taylor said the clusters have been established around key existing hydrogen projects and technology supply chains in strategic locations that have demonstrated the capacity to support them.

"This will ensure long-term local cohesion and sustainable capability across the emerging hydrogen value chain," she said.

"Today marks a great step forward in Australia's capability in developing hydrogen technologies."

Three clusters are based in Western Australia, across Perth, Peel and the South-West and Karratha; one is based in Darwin, Northern Territory; another in Adelaide, South Australia; four are based in Victoria; one in Canberra; one is based in the Hunter Valley, New South Wales, and the final one is based in Brisbane.

Australian Hydrogen Council CEO Dr Fiona Simon welcomed the news, saying the clusters are essential to connect small and medium enterprises across the hydrogen supply chain, and would provide opportunities to leverage hydrogen skills and expertise across the country.

"The hydrogen technology clusters will stimulate jobs growth and create greater efficiencies by sharing technologies, research and other resources within these virtual networks," she said.

"Businesses of all sizes will be able to prepare for the increasing demand for products and services necessary across the hydrogen supply chain, from gas fitters to software engineers."

The establishment of hydrogen clusters were identified by the government's National Hydrogen Strategy which was adopted by all states and territories in 2019.

The news was also welcomed by Hazer group, which is building a hydrogen demonstration project near Perth. Its share price rose 8.3% off the back of the announcement.

Source: Energy News Bulletin

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Minister Lawler's Office: Electricity Market Priority Reforms Program Papers Released

Sonia Harvey — Sat, 30 Jan 2021 05:36:23 GMT

Electricity Market Priority Reforms Program Papers Released

In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has today released policy position and consultation papers on priority electricity market reforms.

Addressing system security, reliability and efficiency; encouraging private investment and maximising the amount of renewable power in our network are the main focus points of the final position paper on dispatch and settlement, and consultation papers on essential system services and reliability reforms.

The Northern Territory Electricity Market Priority Reform Program has been designed to promote competition by facilitating private sector investment in lower cost and cleaner technologies.

Territory households and businesses will benefit from the anticipated downward pressure on electricity costs as a result of a more competitive and lower-cost industry.

The Territory’s power systems are evolving as we transition to solar.

The Priority Reform Program will assist government in delivering cleaner and cheaper power for Territorians by implementing reforms to:

Dispatch – ensuring that the most cost-effective combination of generation (including thermal and renewable generators) is dispatched in the Darwin-Katherine system. This will be achieved by allocating the System Controller responsibility for scheduling generators based on up-to-date information about generator costs and availability.
Settlement – facilitating private sector investment by making it easier for retailers and generators, including new renewables generators, to buy and sell electricity in the Darwin-Katherine system. This will be achieved by introducing financial settlement by the Market Operator.
Essential System Services – ensuring the changing technical requirements for system security are met in the most cost-effective way by enabling their provision by the full range of capable technologies, including batteries and renewables generators.
Reliability – ensuring system reliability meets customer expectations while also keeping costs are as low as possible.

Electricity industry stakeholders are being fully consulted on the details of the priority reforms.

Stakeholders are invited to participate in further stakeholder working group consultation on the essential system services and reliability consultation papers by making written submissions and attending stakeholder workshops.

Final position papers on the essential system services and reliability reforms are expected to be released by mid-2021.

The announcement of the Government’s priority electricity market reforms follows the Government’s announcement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.

Procurement of the BESS is progressing on track for delivery in the second half of 2022.

The Northern Territory Electricity Market Priority Reform Program position and consultation papers can be found at https://business.nt.gov.au/electricityreforms

Quotes from Minister for Renewables and Energy, Eva Lawler:

“Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.

“These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.

“Electricity market reform is complex. Government has been carefully working through stakeholder feedback and design considerations to inform its priority electricity market reforms.”

Sun cable: Milestone renewable energy agreement

Sonia Harvey — Thu, 28 Jan 2021 01:06:03 GMT

Sun Cable and the Northern Territory Government (NTG) today signed a milestone agreement to facilitate the Australia-ASEAN Power Link (AAPL), that will see the Territory host one of the world’s largest renewable energy systems.

The project includes a solar and storage precinct near Elliott, in the Barkly Region, high voltage direct current (HVDC) transmission connecting the precinct to the Darwin-Katherine Interconnected System (DKIS) and proposed Middle Arm Battery and a HVDC submarine link to Singapore.

The 70-year, $22B project will create about 1500 jobs during construction and 350 jobs during operations, as well as $1B in exports.

Signing on behalf of the Northern Territory Government, Chief Minister Michael Gunner said:

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“This project will transform the Territory into a renewable energy powerhouse, and cement our position as Australia’s comeback capital,” the Chief Minister said.

Sun Cable CEO David Griffin said the AAPL project would generate and transmit dispatchable, competitively priced, renewable energy at scale.

“This will provide affordable, reliable energy to support industrial growth in Darwin, as well as supplying up to 20% of Singapore’s electricity needs,” he said.

“The Australia-ASEAN Power Link project will help the Northern Territory make deep cuts to its emissions intensity by decoupling economic growth from carbon pollution,” he said.

Benefits of the project include:

a world-leading renewable energy transmission system;
economic diversification for the Northern Territory;
reliable, affordable dispatchable power;
providing cost effective electricity supply to facilitate new manufacturing, minerals processing and data centre projects;

a major boost to the Territory’s construction sector and a range of other services and suppliers;

a substantial reduction in greenhouse gas emissions in the Northern Territory, Australia and the Indo-Pacific, helping the Territory achieve its goal of net zero carbon emissions by 2050;

Sun Cable will establish a Renewable Energy Centre of Excellence in the Territory, drawing on existing local solar, electricity and infrastructure expertise to grow research and development of renewables.

Sun Cable today signed a Project Development Agreement with the Northern Territory Government that recognises the AAPL’s Major Project Status.

Sun Cable will prepare a Territory Benefits Plan, including an Aboriginal workforce development plan and local participation strategy to maximise local jobs and procurement.

The company has engaged Darwin company EcOz to prepare its Environmental Impact Statement for the project.

The project has drawn on the services of another dozen Territory companies, covering environmental services, ecological and geotechnical surveys, architecture, legal, strategic communication and maintenance.

The company expects AAPL’s financial close to be in late 2023, with first electricity to Darwin by 2026 and Singapore from 2027.

Media inquiries

Jane Munday, True North Strategic Communication on 08 8981 6445 or 0427 880 083

Twiggy declares the age of hydrogen is here

Sonia Harvey — Fri, 22 Jan 2021 01:44:32 GMT

FORTESCUE Metals chairman Andrew ‘Twiggy’ Forrest has proclaimed the answer to the world’s warming climate and mounting energy needs is renewable hydrogen, which he believes could turn Australia into a green steel industrial power house.

In a speech set to be delivered on Saturday as part of the Boyer Lecture series on the ABC, Forrest said the green hydrogen market could generate revenues at the very least of US$12 trillion by 2050 - bigger than any industry currently working.

"And Australia with characteristic luck, is sitting on everything it needs to be the world leader - but only if it acts fast," he said.

Noting his and other global companies' and governments' commitment to the Paris Agreement, Forrest said green energy would need to be able to compete with fossil fuels and be available at the same scale for the goals to be achievable.

"When fossil fuel energy becomes more expensive than renewable energy — that's when we'll reach the tipping point," he said.

"That's when the world will begin the journey in earnest to become zero-carbon. Not only because it's the ‘right' thing to do, but because it makes great sense. And the shift will be lightning fast. Forget 2050 — zero emissions will begin to happen overnight."

Forrest has been jet setting across the globe, travelling to nearly 50 countries, meeting world leaders and signing agreements for his new venture: Fortescue Future Industries.

He highlighted the personal risk he took given he caught COVID from a translator and was forced to spend three days in a Swiss hospital.

"In short, my time on the road made me realise that our ambitions — while risky — were far from radical," he said.

"The question isn't whether or not green hydrogen will become the next global energy form … it's which company has the resilience to take the risk and truly test green hydrogen at global, industrial scale."

Forrest said capturing even 10% of the world's steel market could create more than 40,000 jobs in Australia - more than enough to replace those set to be lost in the declining coal industry.

He noted global business including Thyssenkrupp in Germany, and Nippon Steel, were already trialing using renewable hydrogen to create zero-emissions steel, and his company planned to do the same thing in Western Australia.

"We aim to start building Australia's first green-steel pilot plant this year, with a commercial plant in the Pilbara, powered entirely by green electricity from wind and solar, in the next few years," he said

"Australia is in an absolutely unique position to scale green steel. Our neighbours and customers want to phase out carbon pollution by 2050, and coal - the most carbon-intensive of the fossil fuels - will be phased out, too."

He said they were carrying out feasibility studies that could lead to the company generating some 300GW of power - targeting hydroelectricity and geothermal, with the final aim of generating 1000GW of zero-emissions energy.

Forrest, never afraid to make grandiose statements, says he aims to take on the likes of Tesla - noting it is yet to make a net profit, despite it having a market value of over US$800 billion.

In contrast, FMG is scheduled to lodge its half year results on February 18, with Forrest saying the company's net profit after tax for December 2020 came to US$940 million.

"I choose change. I choose hydrogen. What do you choose?"

Source: Energy News Bulletin

Read more here

Beetaloo Basin joint venture update

Sonia Harvey — Tue, 19 Jan 2021 02:21:36 GMT

Origin has submitted a notification and initial report to the Northern Territory Government confirming the discovery of hydrocarbons at the Kyalla 117 N2-1H ST2 exploration well near Daly Waters, in the Beetaloo Sub-basin.

The notification of discovery is supported by preliminary production test data and petrophysical data. It follows recent work to introduce nitrogen to lift the fluids in the well, allowing it to flow unassisted for a measurable period.

The initial report, based on early well flow data, is positive and shows:

Unassisted gas flow rates ranging between 0.4 and 0.6 million standard cubic feet per day (MMscf/d) over a seventeen-hour period.
Flow back of hydraulic fracture stimulation water to surface with an average rate of between 400 – 600 barrels per day (bbl/d) over the same period.
Initial observations indicate a liquid-rich gas composition with CO2 estimated at less than 1%. Condensate shows were also present.

Origin Executive General Manager Integrated Gas, Mark Schubert said, “We are encouraged by the early results from the well, which has met our primary objective to flow liquids rich gas from the Kyalla formation.

“To support the well to flow continually without assistance we will now put in place longer term measures to flow back sufficient hydraulic fracture stimulation water, enabling production testing to commence in the coming months during the dry season.

“This is the first well to be successfully drilled into the Kyalla formation and we continue to gather important knowledge and data that will inform and refine our ongoing exploration activity in the Beetaloo,” Mr Schubert said.

The notification of discovery and initial report are a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and satisfies the requirements of the NT Guidelines for reporting a petroleum discovery.

A further update will be provided when production testing has concluded, and detailed evaluation has been undertaken, expected to be in Q2 2021.

The Beetaloo Exploration Project is a joint venture with Falcon Oil & Gas Limited. For more about the project visit www.originbeetaloo.com.au.

Feds pave new roads to Beetaloo investment

Sonia Harvey — Thu, 14 Jan 2021 01:33:10 GMT

THE FEDERAL government has announced a new A$217 million package to upgrade roads to make the Beetaloo Sub-basin more accessible for the oil and gas industry.

On Thursday, deputy prime minister Mick McCormack and minister for resources Keith Pitt unveiled the government's Northern Territory Gas Industry Roads Upgrades program.

The program allocates $217 million of taxpayer funds to upgrade a corridor of roads including the Gorrie Dry Creek Road, Buchanan Highway, Western Creek Road, and other key paths to the Beetaloo region.

The government said the infrastructure would create crucial supply chains to attract gas development.

"The Basin has the potential to transform the Northern Territory's economy. The government's investment in roads and other supporting infrastructure will help unlock these benefits as well as supporting job opportunities for locals," Pitt said.

"These road upgrades will provide quality infrastructure to support gas development and other industries in and around the Beetaloo Sub-basin."

According to Pitt, the roads will create more reliable freight links and reduce private sector investment in road building to gas fields.

The roads will be sealed, strengthened, widened, and realigned. They will also be upgraded to resist flooding.

The $217 million tops up an earlier commitment of $219 million from the federal budget for roads in the Territory.

Towards the end of last year the government separately committed $50 million to help underwrite exploration work in the Beetaloo.

Up to $7.5 million will be made available for each exploration well drilled. Companies can apply for a total of $22.5 million.

ASX-listed Empire Energy, which recently drilled its Carpentaria-1 exploration well and hit liquids-rich gas, said the program would be a game changer for its short-term plans.

"Access to this program will allow Empire to expand its 2021 program," Empire Energy CEO Alex Underwood said.

Source: Energy News Bulletin

Read more here

Origin announces giant battery in NSW

Sonia Harvey — Tue, 12 Jan 2021 04:36:06 GMT

JUST a day after it was revealed Neoen plans to build a 500MW battery in NSW, Origin has one-upped them, announcing plans to build a 700MW battery at its Eraring Power Station.

In a press release Tuesday, Origin said it had issued an Expression of Interest to suitably qualified firms to supply and install the battery and had lodged a Connection Enquiry to grid operator Transgrid to connect the battery to the grid.

"We recognise we have an important role to play in positioning Origin's electricity generation portfolio to support Australia's rapid transition to renewables," Origin executive general manager Greg Jarvis said.

"A large-scale battery at Eraring will help us better support renewable energy and maintain reliable supply for customers, by having long duration storage ready to dispatch into the grid at times when renewable sources are not available."

The 2.8 gigawatt Eraring power station is Australia's largest, supplying around a quarter of NSW's energy needs and is Origin's only coal-fired generator.

Origin expects the battery to be deployed over three phases, with the first phase to be operational by late 2022. The project is yet to be approved by the Origin board.

"The deployment of this battery at Eraring will support Origin's orderly transition away from coal-fired generation by 2032, while complementing the policy objectives of the NSW energy roadmap," Jarvis said.

The NSW roadmap, legislated late last year, calls for 2GW of energy storage to support 12GW of renewables expected to be rolled out across the state's four proposed renewable energy zones.

Origin's announcement comes a day after Neoen submitted a scoping study to the NSW government to build a 500MW battery in town Wallerawang.

The study suggests construction on the A$400 million project could begin by 2022 and be operational by 2023.

Historically grid-scale battery storage systems have had to be underwritten by governments in order to be competitive, however the economics around the technology are rapidly shifting as the cost of deployment falls.

Source: Energy News Bulletin

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Shell chief hints at transition plans

Sonia Harvey — Mon, 11 Jan 2021 04:52:12 GMT

SHELL chief Ben van Beurden has outlined some of the company’s plans to reduce its carbon emissions ahead of the company unveiling its new strategy next month.

In an interview posted on Shell's website last week, Van Beurden noted the personal and financial pain caused by last year's COVID-19 pandemic and subsequent oil price crash, forcing the company to cut its dividend.

"I had a knot in my stomach on the day we had to announce it, even though, at a senior level, we all agreed that this was the right thing to do," he said.

Last April the company announced its ambition to reach net-zero emissions by 2050 or sooner, alongside other European majors including BP, Equinor and Repsol.

Beurden addressing Scope 1 emissions would be the smallest of three tasks it would have to do, noting the company would also have to reduce the carbon intensity of the products it sells by selling things such as hydrogen, biofuels and electricity, and also address Scope 3 emissions.

"We have to work with our customers because we cannot simply try to sell lower-carbon energy to customers who have no technical nor commercial use for it. We have to help our customers get to net zero. If they cannot get to net zero, we will not get to net zero," he said.

"The exact steps to get there are not yet totally clear, but what we do know is that you can figure it out best by working sector by sector."

Last month the Financial Times reported several senior clean energy executives had quit the company amid a spat over how far and fast it should shift towards renewables and biofuels.

The FT said some executives have pushed for a more aggressive shift from oil but top management is more inclined to stick closer to the company's current path.

Beurden's interview made no mention of the internal rifts, with the chief saying the company's net zero ambition would mean changing the way the company thinks and the way its organised, noting around 7000-9000 jobs across the company were expected to go by the end of 2022.

"The strategy we are setting is transformational. If you plan to be the type of organisation that works with customers on products and technologies that are not yet well established, you have to be more entrepreneurial, more nimble, more simple," he said.

Last month, Beurden told a web conference he was hopeful the incoming Biden administration would bring stronger collaboration and policies to tackle climate change and speed up the energy transition.

Source: Energy News Bulletin

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Eni sale off the table

Sonia Harvey — Wed, 06 Jan 2021 05:02:55 GMT

MORE ageing Australian assets are off the table after Eni has pulled the sale of its fields and associated infrastructure, apparently citing lower than expected offers.

This follows ExxonMobil's decision to cancel the planned sale of its Bass Strait assets offshore Victoria late last year, after putting them up for sale in September 2019.

The US giant was again apparently unhappy with the prices offered. In 2016 it tried and failed to sell its stake, though even in June last year Australian chief Nathan Fay was gung ho on the asset sale.

Eni holds the Blacktip gas field offshore the Northern Territory, stakes in the Bayu-Undan gas field operated by Santos, which sanctioned a three-well infill drilling program two days ago to prolong the life of the declining asset, and the Darwin LNG plant it feeds.

Source: Energy News Bulletin

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Santos sanctions Bayu Undan infill

Sonia Harvey — Wed, 06 Jan 2021 04:57:31 GMT

SANTOS has sanctioned its US$235 million Bayu-Undan infill development drilling program to send more gas to the one train Darwin LNG facility.

Phase 3C is made up of three production wells, one subsea and two platform wells, to extend the life of the facility as sanction of the Barossa backfill field has been delayed to later this year, after an initial final investment decision date of 2020.

The program will add over 20 million barrels of oil equivalent in gross reserves and will reduce the time the DLNG plant is offline, though the company did not say by now much.

The three will be drilled using the Noble Tom Prosser jack-up rig and the spud of the first well is planned for the next quarter and production by the following quarter. The fields are now fully in Timor Leste waters after the maritime boundary was ratified in 2019 by Canberra and Dili.

"We are delighted to be able to pursue an opportunity that wasn't on the table 12 months ago, which will optimise field recovery, extend production and deliver significant value to both the Bayu-Undan joint venture and the people of Timor Leste," managing director Kevin Gallagher said.

"Only through a close and constructive working relationship with the Timor Leste government and our joint venture partners have we been able to move so quickly towards our shared goal of maximising value from the Bayu-Undan field."

Santos took a much larger share in the field, Barossa and the LNG plant last year when its buy of ConocoPhillips' Northern Australia and Timor Leste assets completed. It holds 68.4% of Bayu-Undan and DLNG, which goes down to 43.4% when its sale of a share of both assets to partner SK E&S completes.

Source: Energy News Bulletin

Read more here

Hydraulic Fracturing Community Bulletin #36

Sonia Harvey — Tue, 22 Dec 2020 06:22:51 GMT

Community and Business Reference Group meet for the eighth time

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its eighth and final meeting in Darwin and via video conference on 8 December 2020.

Established to provide a forum for government to seek advice and share information, the Reference Group received updates on:

HFI implementation six month progress update: for the period of 1 May to 31 October 2020
CBRG term conclusion and ongoing oversight.

The Reference Group discussed the progress update with Northern Territory Government senior officers and Dr David Ritchie in attendance.

The Reference Group supported the view that the CBRG term would conclude on 31 December 2020 without seeking further extension. Engagement and oversight through final stage of inquiry implementation would continue directly with the Independent Overseer, Dr Ritchie and through existing and newly established working and reference groups.

For full details of the meeting read Communique 8

Juniors rejoice over $50M fund for Beetaloo exploration

Sonia Harvey — Fri, 18 Dec 2020 04:40:01 GMT

EXPLORERS in the Beetaloo Basin are rejoicing over the federal government’s commitment to underwrite up to A$50 million in exploration work in what is quickly becoming the world’s hottest oil play

The Morrison government yesterday announced it would provide funding to fast-track drilling in the Beetaloo Basin by covering 25% of eligible exploration costs, capped at A$7.5 million per well, and three wells per exploration venture.

The news has been greeted with great enthusiasm from oil and gas explorers in the frontier play.

ASX-listed Empire Energy, which recently drilled its Carpentaria-1 exploration well and hit liquids-rich gas, said the program would be a game changer for its short-term plans.

"Access to this program will allow Empire to expand its 2021 program," Empire Energy CEO Alex Underwood said.

Empire expects to receive approval to frac the vertical and horizontal sections of its Carpentaria-1 well by the first quarter of next year.

It could be drilling a second well by the second quarter, given the new fund available to it.

The funding will be available for exploration that occurs before June 2022.

Fellow Beetaloo Basin explorer Falcon Oil & Gas, which holds 22.5% interest in three exploration permits alongside operator Origin Energy, also noted the fund.

"The announcement by the Australian government highlights the strategic and economic importance of the Beetaloo sub-basin which it believes has the potential to be a world-class resource, transform the NT economy and generate 6000 jobs by 2040," Falcon CEO Philip O'Quigley said.

Source: Energy News Bulletin

Read more here

Hydraulic Fracturing Community Bulletin #35

Sonia Harvey — Tue, 15 Dec 2020 06:23:59 GMT

Seventh Hydraulic Fracturing Implementation Progress Update

Updates on implementation of recommendations from the Final Report of the Scientific Inquiry into Hydraulic Fracturing are available on the Hydraulic Fracturing website.

This progress update provides detail on the status of implementation from 1 May to 31 October 2020. As at 31 October 2020, 61 of the 135 recommendations have been fully completed. Updates to the implementation status of individual recommendations can be found by clicking on the relevant recommendations.

Highlights from the progress achieved in the six month period from 01 May – 31 October 2020 and next steps are summarised below, aligned to the following four key areas of implementation and reform:

The Strategic Regional Environmental Baseline Assessment (SREBA) for the Beetaloo Sub-Basin
Regulation and Assessment
Completing implementation of the Inquiry Recommendations
Information Management and Community Engagement.

1. SREBA

The SREBA is a set of studies to address knowledge gaps and establish appropriate baselines against which the potential impacts of proposed onshore gas activities may be assessed. The baselines can also assist in the design and planning of future development, particularly at a regional scale, in order to minimise impacts.

The SREBA consists of six study domains: water quality and quantity; aquatic ecosystems; terrestrial ecosystems; methane and greenhouse gas; environmental health; and social, cultural and economic. To guide these studies, the Framework for Strategic Regional and Environmental Baseline Assessment: A guide to undertaking a SREBA in the Northern Territory (the Framework) was released in July 2020 following public consultation, briefings and seeking further feedback to inform the final Framework.

The Department of Environment, Parks, and Water Security (DEPWS) is responsible for the coordination of all six SREBA studies and the delivery of the five studies relating to the biophysical environment and environmental health. The Department of the Chief Minister and Cabinet (CM&C) is responsible for delivering the sixth study, which relates to the social, cultural and economic domain.

All six studies have commenced and are at different stages of development.

The Scope of Work for the water component of the SREBA for the Beetaloo Sub-basin has been drafted, ready for peer review. The Scope of Work for the aquatic ecosystems components of the SREBA is currently under development, and this will include consideration of subterranean ecosystems, which will also be informed by baseline studies in the Water domain.
The Scope of Work for the terrestrial ecosystems component of the SREBA for the Beetaloo Sub-basin is near completion.
Some baseline studies that will contribute to the water and ecology components of the Beetaloo SREBA have already commenced through the Commonwealth Geological and Bioregional Assessment (Program). These biophysical studies, and the collection of data for the Beetaloo SREBA as a whole aims to be undertaken by December 2021.
The Scope of Work for the environmental health component and the methane and greenhouse gas studies are both currently out for procurement, with studies expected to commence in 2021.
Following a successful procurement process, the contract for the Social, Cultural and Economic study has been awarded to Circle Advisory. Circle Advisory are currently developing stage one, the Scope of Work for these studies and have been consulting in Darwin and the broader Beetaloo Sub-Basin since September 2020. It is anticipated that the social, cultural and economic Scope of Works will be ready for the Minister for Environment to approve in early 2021.

2. Regulation and Assessment

Agencies continue to regulate the onshore petroleum activities while progressing recommendations of the Final Report. A total of 15 Environment Management Plans (EMPs) have been approved under the Petroleum (Environment) Regulations 2016 since the responsibility for environmental regulation was transferred to the Minister for Environment.

DEPWS compliance activities are ongoing and include the review and publication of monitoring reports and periodic inspection of well sites. In the interest of transparency, interest holders are required to submit Annual Environment Performance Reports detailing compliance with environmental obligations made in the EMP. Eight reports have been published on the website in 2020. DEPWS is also implementing recommendations from an informal review that sought feedback from other agencies and industry, with a view to improving the efficiency and effectiveness of environmental regulation.

The Department of Industry, Tourism and Trade (DITT), now holding the regulatory functions of the former Department of Primary Industry and Resources, continues its regulatory responsibilities related to well integrity, hydraulic fracturing and well operations, having approved a Well Operation Management Plan for drilling activities undertaken in the McArthur Basin by Empire Energy. The Department has conducted monitoring and compliance site inspections at Origin Energy’s Kyalla 117 well in the Beetaloo Sub-basin and Empire Energy’s drilling activities. Regulation of tenure responsibilities including company work programs, title administration and revocation or reserve blocks also remains a key function and responsibility.

Offsets (recommendation 8.9) and Emissions (recommendation 9.8)

The Northern Territory Government released its ‘Northern Territory Offsets Framework’ and ‘Northern Territory Offsets Principles’ in July 2020. The principles will support the development of offset policies to guide consistent offsetting arrangements and requirements for projects with significant residual environmental impacts in the Northern Territory.

Under the Framework, individual and targeted biodiversity and greenhouse gas offset policies will be developed. Work on these policies is underway.

The Northern Territory Government is currently working with the Commonwealth Government on negotiating a Bilateral Agreement which focusses on a number of priorities with respect to energy and emissions, including efforts to assist in meeting recommendation 9.8: That the NT and Australian governments seek to ensure that there is no net increase in the life cycle GHG emissions emitted in Australia from any onshore shale gas produced in the NT.

Petroleum Act amendments

The Petroleum Legislation Miscellaneous Amendments Bill 2019 was passed in the Legislative Assembly on 24 March 2020 and was assented to on 30 March 2020. The amendments to the Act commenced in June 2020 and allow for regulations to be made in relation to land access.

The government consulted with affected stakeholders on draft Petroleum Regulations that detailed the requirements of statutory land access agreements in June 2020. These draft regulations are being further amended and are expected to commence on 1 January 2021. Petroleum companies will then require a land access agreement with the minimum 24 protections before being able to undertake petroleum exploration activities on a pastoral lease.

EBPC Act amendments

On 29 October 2019, the Federal Minister for the Environment formally announced a review of the Environment Protection and Biodiversity Conservation Act 1999 (Cth)(EPBC Act).

The Northern Territory Government provided a submission to the Review reiterating its expectation that the Commonwealth review will include a response to recommendation 7.3: that the Australian Government amends the EPBC Act to apply the ‘water trigger’ to onshore shale gas development.

The Interim Report of the Review was released in June 2020. The Interim Report does not support changes to matters of national environmental significance (MNES) as proposed by recommendation 7.3.

The Final Report of the Review was submitted to the Federal Minister for the Environment at the end of October 2020. The Territory Government will continue to liaise with the Commonwealth regarding this matter.

3. Completing implementation of Inquiry recommendations

The NT Government has made significant progress in a short amount of time by implementing 61 of the Inquiry’s recommendations, Government must complete an additional 74 Inquiry recommendations (of which 24 relate to the SREBA) before it can consider industry applications for production activities of shale (unconventional) reservoirs. This requires a significant amount of research, policy development, regulatory development and changes to legislation over the next three years, supported by significant stakeholder and community engagement.

In addition to the status of priorities already covered in this submission under the specific sections of 1. SREBA, 2. Regulation and Assessment and 4. Information Management and Community Engagement, a number of other implementation priorities are the focus for 2021.

Further amendments to the Petroleum Act

The Petroleum Act will require further amendments in 2021 to complete numerous outstanding Inquiry recommendations, which includes, but is not limited to:

Merits review for decisions under the petroleum legislation with third party standing;
a non-refundable levy for the long term-monitoring, management and remediation of abandoned wells;
development of a financial assurance framework for petroleum operators; and
a broader range of powers to sanction under the legislation.

Seismicity Framework

DITT will develop and implement a framework for mitigating induced seismicity occurrences, as a result of petroleum industry activities and continues the work with CSIRO and regulators to formulate an appropriate system for measuring seismic intensity in the Northern Territory.

Financial Assurance Framework

The Petroleum Act 1984 was amended to enable regulations to be made to require an environmental security for onshore petroleum activities including the calculation of security. DITT and DEPWS will develop and implement a financial assurance framework in consultation with the community and key stakeholders.

The Northern Territory’s Gas Service and Supply Plan

HFI recommendations 13.2 to 13.10 require the NT Government to work with stakeholders and gas companies to maximise local employment and develop local procurement targets.

These recommendations are being advanced through the NT Gas Service and Supply Plan that was launched on 5 March 2020 to increase local participation to at least 50 per cent by 2025 through strengthening the commitment of gas operators to local content, growing local workforce and business capability and strategically developing the service and supply ecosystem. It includes actions to work with gas companies, land councils, local governments, local suppliers and businesses to strengthen gas industry procurement targets.

The Plan is supported by the establishment of the Onshore Gas Supply Chain Working Group which held its inaugural meeting on 16 July 2020 with membership including NTG, Santos, Origin Energy, Armour Energy, Empire Energy, Pangaea and Central Petroleum; and the more recent meeting of the Gas Industry Reference Group of peak bodies on 27 October 2020.

4. Information Management and Community Engagement

Online portal

An online portal for public access to information and data on onshore petroleum activities, including approvals and compliance reports, has been established. The online portal is expected to go live by December 2020. The portal contributes to government’s commitment of ensuring transparency in the development and regulation of the onshore petroleum industry.

Community engagement and Social Responsibility

Recommendations 12.16, 12.17 and 12.19 Inquiry require the NT Government and the onshore petroleum industry to undertake actions which facilitate community cohesion, build trust, and maintain transparent communication with the public and stakeholders. These activities are characteristics necessary to develop and maintain a Social Licence to Operate (SLO).

The preferred term is ‘social responsibility’ which is required to build ‘social value’ to better represent the desire to build public understanding and trust of both the onshore petroleum industry and government’s ability to regulate.

A Social Responsibility Framework to guide the delivery of this work, is being progressed, with an independent science-based community engagement program to commence in 2021. The objective of this work program is to have an independent, scientific and credible team/institution deliver information to all interested parties, through ongoing and regular face-to-face engagement with the community about onshore unconventional gas in the NT.

Aboriginal Information Program

An Aboriginal Information Program (AIP) working group was formed in late 2019, with members from the NT Government, the AAPA, Northern and Central Land Councils, industry representatives and the Australian Petroleum Production and Exploration Association (APPEA). The working group agreed to coordinate the development of an Aboriginal information package in two stages.

As part of Stage 1, a Scope of Works was developed by CSIRO and approved by the group in March 2020. This work consists of CSIRO delivering a package of information that is:

clear, factual and relevant content for communication material to distribute to communities potentially affected by shale gas development and hydraulic fracturing in the Northern Territory, particularly for translation into languages of local Aboriginal communities.

To ensure content of the package delivers on the intended purpose of the program, Land Councils are now working directly with CSIRO to finalise the draft package that will be presented to the working group for their endorsement and decision on next steps.

Whilst delivery of this project has been delayed, AIP working group members are engaged and supportive of the approach being taken to ensure delivery of the project achieves the desired intent.

Independent Oversight of the Seventh Hydraulic Fracturing Implementation Progress update

The role of the Independent Overseer is to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed. The nature of this role requires the Independent Officer to remain at arms-length from day-to-day decisions and processes relating to implementation.

The Chief Minister approved the extension of Dr Ritchie’s term as Independent Overseer until 31 December 2021 to see out implementation of HFI recommendations.

Dr David Ritchie, has provided comment on the progress of implementation outlined in the seventh update.

Overall, Dr Ritchie found that implementation continues satisfactorily in accordance with the findings of the Inquiry.

Read Dr Ritchie’s full advice here PDF (218.7 KB) PDF (224.5 KB)

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

Community and Business Reference Group

The Community and Business Reference Group met for the eighth and final time on 8 December 2020. The agenda primarily focussed on the review of the review of the 6 month Progress update. The CBRG term ceases on the 31 December 2020 with members briefed on the ongoing oversight arrangements that will be put in place for the duration of implementation.

What’s next?

The NT Government is progressing from stage two to stage three of the Implementation Plan for most Hydraulic Fracturing Inquiry recommendations. Stage three recommendations are mostly larger projects that are anticipated to be delivered over the next 18 months to three years. Progress updates will be announced through six-monthly community bulletins as Stage 3 of the Implementation Plan continues.

Want to find out more?

To find out about opportunities to engage in consultation or to keep up to date with status of implementation of each recommendations, sign up for regular updates on the website: www.hydraulicfracturing.nt.gov.au by email: hydraulic.fracturing@nt.gov.au

Empire on track for Beetaloo frac

Sonia Harvey — Mon, 14 Dec 2020 04:43:56 GMT

EMPIRE Energy expects approval to frac the vertical and horizontal sections of its Carpentaria-1 well in the Beetaloo Sub-basin by the first quarter of next year from the Top End government and could be drilling by the second quarter.

It has submitted its environmental managing plan to the Northern Territory government to frac its Carpentaria-1 well in both the vertical and horizontal sections where it is targeting the Middle Velkerri Shale in its EP187 permit.

It has been accepted by the Department of Environment, Parks and Water Security for final assessment and if accepted the EMP will remain for five years.

It said work will be run over the most promising liquids-rich gas intervals, and data analysis to choose these is ongoing.

The company said it is "active discussions'' with contractors to frac the well who have confirmed needed equipment will be available. Work will be paid for with existing cash reserves.

Some 50 sidewall cores from the target horizons of the Velkerri are being analysed to establish porosity, permeability, mineralogy, and axial strengths.

These will be integrated with and calibrate the downhole log data sets drilling operator Schlumberger acquired.

It expects the final set of core analyses from the W.D. von Gonten laboratories in Texas in the middle of next month. Then it will commission certifiers Netherland Sewell & Associates to update its independent prospective resource report, which it expects material changes to given the presence of liquids found while drilling.

It suggests initial commercialisation via the Daly Waters to McArthur River Mine pipeline which runs through its permit and is only 5.7 kilometres from the well. The pipe sends gas to a nearby zinc mine operated by Glencore.

It also noted a recent memorandum of understanding between pipeliner Jemena and Tamboran Resources for a new pipeline running to the field the latter shares with Santos.

Source: Energy News Bulletin

Read more here

Origin puts pedal to the floor at Beetaloo project

Sonia Harvey — Fri, 11 Dec 2020 04:50:45 GMT

AUSTRALIAN gas producer and LNG exporter Origin Energy will push forward with operations at its Kyalla-117 well, despite previously saying it would delay artificial lift activities.

Kyalla-117 was drilled by Origin (77.5%) and Falcon Oil & Gas (22.5%) in exploration permit EP117. It was fracced this year, however testing following fraccing showed the well had greater pressures than the reservoir, affecting flow rates.

On Thursday, the venture announced they would re-enter Kyalla-117 with coiled tubing and apply nitrogen lift to lower the pressure in the wellbore and sustain a gas breakthrough.

The nitrogen lift was previously expected to take place next year following the wet season.

"The joint venture has decided to execute operations without delay with all the necessary equipment and consumables for the nitrogen lift being prepared to mobilise to the well site," Falcon said in a statement overnight.

If successful, the artificial lift will allow for extended production testing.

The nitrogen injection should lift the fluids in the well and lower pressures, a common technique which was carried out at Origin's earlier exploration well Amungee-NW-1H back in 2016.

The well, which successfully flowed at 1.1 million cubic feet per day over almost two months from the Velkerri B Shale, defined a potential gas-in-place of 61 trillion cubic feet within an area covering 1968 square kilometres across Origin's three permits.

The venture drilled its second well, Kyalla-117 as an appraisal well following the success of Amungee-NW-1H, to a total depth of 3809 metres with a 1579 lateral section in February.

Source: Energy News Bulletin

Read more here

Tamboran makes major acquisition in Beetaloo

Sonia Harvey — Fri, 11 Dec 2020 04:45:23 GMT

PRIVATELY held Tamboran Resources has acquired three permits in the Beetaloo Sub-basin after announcing it would acquire Sweetpea Petroleum yesterday in an all-scrip deal.

It said this was a move to strategically expand its foothold in the highly prospective frontier basin in the Northern Territory.

Tamboran already owns a 25% stake in the EP161 tenement in the Beetaloo alongside Santos (75%).

The company will now add to its portfolio exploration permits EP136, EP143 and EP197.

EP136 sits adjacent to the EP161 permit and according to Tamboran covers a portion of the Beetaloo with the "thickest and highest quality" shales as delineated by seismic and data from previous wells.

"The acquisition of EP 136 is a very important milestone for the company," Tamboran chief executive Joel Riddle.

"We are now resuming our role as an operator for what we believe will be the next phase of development in the Beetaloo."

Tamboran and Santos have already drilled one well, Tanumbirini-1, in EP161 which was successfully fracced this earlier this year.

The well flowed at a rate of 2.3 million cubic feet of gas per day over a 90-hour test.

Shortly after the flow test Tamboran and Santos announced they would drill two appraisal wells, Tanumbirini-1 and Tanumbirini-3, both of which will target the Middle Velkerri Formation.

The wells are expected to be drilled over the next 12 months following the wet season.

Tamboran noted that the new permit EP136 sits next to Origin Energy and Falcon Oil & Gas' EP76. Origin and Falcon are planning to drill a new exploration well targeting the same Middle Velkerri Formation next year.

"In total, this area may see between three and five new delineation wells or results over the next year making this one of the most active onshore exploration plays globally," Riddle said.

Source: Energy News Bulletin

Read more here

Central signs gas agreement with Macquarie

Sonia Harvey — Fri, 23 Oct 2020 03:32:56 GMT

AUSTRALIAN oil and gas company Central Petroleum has varied its sales agreement for 3.5 petajoules of gas per annum with Macqurie and secured a 12 month extension to its finance facility with the bank.

The agreement changes a prior arrangement for the bank to hold an option to take gas between 2022-23 to it making a firm payment by December 15, giving the Northern Territory and Queensland-focussed company immediate funds for development work at the Mereenie gas field.

Central will supply the gas to the bank or its nominee over 2022-23.

It plans the recompletion of four existing wells and the drilling of two new production wells in the Top End.

The project will add 5 terajoules of gas per day bringing the total to 45TJ/d with 20TJ/d net to Central.

The company was given the all clear by the Top End regulator this week for the field work.

The new close date for the $70 million facility is the end of September 2022.

Central and Macquarie first struck a gas sales and prepayment agreement in May 2016 for 5.2PJ of gas for delivery this and next year.

"The new deal will essentially continue gas deliveries to Macquaries at the same rate for a further two years," Central said.

This brings its contracted gas sales to 7.5PJ for 2022 and 5.2PJ in 2023.

It also preserves firm contracting capacity for delivery through the proposed Amadeus to Moomba gas pipeline, which could be online by 2024.

Source: Energy News Bulletin

Read more here

Inpex contractor found not guilty of causing death of worker

Sonia Harvey — Thu, 22 Oct 2020 03:42:24 GMT

INPEX contractor Kawasaki Heavy Industries has been found not guilty of causing the death of a subcontractor who died in horrific circumstances at the ichthys LNG project in 2017.

Northern Territory WorkSafe laid charges against contractors Kawasaki Heavy Industries and sub-contractor Whittens Group after they allegedly "failed in their health and safety" duties resulting in the death of employee Carl Delaney in November 2017 at the Ichthys onshore LNG plant.

According to court documents, Kawasaki has been found not guilty of negligence and causing the death of the employee.

On November 29, 2017, Delaney was working for subcontractor Whittens conducting insulation works on one of the LNG tanks.

According to NTWorkSafe the tasks being performed were "high risk".

Delaney was working in a confined space when he fell from a height into the tank and was engulfed in an insulation called Perlite. He died of suffocation, according to a coroner's report.

He was working alone when he fell.

The report found that while workers were required to connect to safety harnesses, there was a culture of ignoring this requirement.

NTWorkSafe alleged both contractors did not provide and maintain a safe system of work and provide supervision as required under the Work Health and Safety Act 2011.

Northern Territory Local Court judge Tanya Fong Lim quashed the charges against Kawasaki, however said the complaint against subcontractor Whittens remained.

Source: Energy News Bulletin

Read more here

Taylor heads to the Beetaloo

Sonia Harvey — Mon, 19 Oct 2020 03:35:30 GMT

EMPIRE Energy hosted energy and emissions reduction minister Angus Taylor at its Carpentaria-1 well Friday, as well as Senator Sam McMahon and the Northern Territory leader of the opposition Lia Finocchiaro and the Darwin representative of Australia’s peak oil and gas lobby body.

The well is in Empire's EP187 in the Northern Territory's Beetaloo Sub-basin, which is first cab off the rank for the government's $28.3 million Strategic Basin Plans, to develop five of Australia's gas basins, announced as part of the federal budget.

A second trip tomorrow will involve members of the sitting Territory government which was returned to power last month.

"We've met with him (Taylor) before earlier this year but this is the first well (drilled) in the basin since the gas-fired recovery was announced and on the back of that we invited him to join us on site," managing director Alex Underwood told Energy News.

It's an unusual trip in some ways given the Empire is nowhere near the size of other Beetaloo players Origin Energy, which shares the Kyalla-189 well with Irish Falcon Oil & Gas, or Santos but perfect timing given the well results of last week.

Last Monday Empire announced the well, being drilled with Schlumberger Land Rig 183, had intersected an "extensive" interval of liquids rich gas in the Velkerri Shale based on mud gas liquids readings and the proportion of liquids "dramatically" exceeds analogue wells previously drilled in the area and also exceeds its own pre-drill estimates.

The well will be cased and then after data is analysed a forward drilling program for next year's dry season will be developed.

"It's very encouraging for the company that we now have strong support at the Territory and federal level for development of this basin, the government here has shown leadership with respect to development and Darwin is already a major LNG hub," Underwood said.

"The government here recognises that that gas development will bring broader economic benefits and that gas will be part of the energy mix as renewables have a larger share of power generation to stablise the grid.

"I just think it was important for a senior member of the federal government to see the results of this basin."

"The Beetaloo Basin is a world-class resource that has the potential to drive significant development in the Top End to create local jobs and help Australia remain a world leader in gas," a statement from Taylor's office said.

"The government's Strategic Basin Plans will accelerate this development, driving investment and job creation in our regional and Indigenous communities as we recover from COVID-19."

The same day anti-fraccing group Lock the Gate posted protest photos on its Twitter account but Underwood said there had been no protests at the site and was caught off guard when first asked about protests by Energy News Friday.

Source: Energy News Bulletin

Read more here

MANUFACTURING ONSHORING WEBINAR

Sonia Harvey — Mon, 12 Oct 2020 02:48:55 GMT

The last few months have created a new focus across Australia Supply Chains, especially the reliance on imported goods and extended supply chains. For many products the case for ‘making it here’ is being re-assessed. This is a trend that has been underway for at least five years in North America and Europe, but COVID 19 is finally prompting a re-evaluation of Australia’s over-reliance on international supply chains.

This interactive webinar will discuss and review the following:

What are the considerations about where to source?

What are the hidden costs (total) of extended Supply Chains?
What has changed that necessitates a re-evaluation of past sourcing decisions
What are the six steps required to successfully bring production home?

Learning Outcomes:

Guidelines to help decide which inputs to source locally and which to import.
The six steps that businesses need to take to successfully re-establish local production
How local suppliers can position themselves to benefit from the move to local sourcing.

Attendee numbers will be limited to 30 as this will be a fully interactive workshop.

REGISTER NOW

Presenter: Tim McLean

Tim has 32 years’ experience in the manufacturing industry in management and consulting roles. Tim is the author of two books focused on the manufacturing and supply chain challenges faced by SMEs. As the MD of TXM Lean Solutions Tim has worked in around 20 countries and 1000 factories over the past 15 years, providing him with unique insight into the current state of manufacturing and how technology and Lean is shaping businesses across a range of industries.

TUESDAY 18 NOVEMBER

WEBINAR

12:30PM-2:30PM AEST

PRESENTER

Tim McLean
TXM

Origin completes fraccing of big budget Beetaloo well

Sonia Harvey — Mon, 05 Oct 2020 06:45:24 GMT

AUSTRALIAN LNG giant Origin Energy and its venture partner Falcon Oil & Gas have completed 11 stages of fraccing at the highly anticipated Kyalla-117 well in the Beetaloo Basin of the Northern Territory.

Late Friday, Falcon Oil & Gas, which holds a 22.5% stake in the Beetaloo project, told shareholders operator Origin Energy (77.5%) had completed an 11-stage fraccing program across the high-profile, high-cost, Kyalla-117 well.

The fraccing program aimed to stimulate 11 sections across a 1579-metre horizontal section of the well targeting the Lower Kyalla Formation.

With the fraccing activities now complete, the venture is preparing for flowback and an extended production test. According to Falcon, early stage gas flow rates are expected in the coming weeks.

"We look forward to the next phase of operations with the production testing of the Kyalla-117 well and will update the market as results become available," Falcon chief Philip O'Quigley said in a short statement.

Initial results from the flow test are expected in the coming weeks, and full results from the production test should be available within the first quarter of next year.

Kyalla-117 was drilled to a total depth of 3809 metres with a 1579 lateral section in February this year. Total costs of drilling and completing the well are expected to be in the range of $50 million.

During drilling, elevated gas shows with relatively high liquids were observed across all three of the target reservoirs.

Origin is paying the full amount of the current operations, up to A$25 million, as part of its farm-in agreement with Falcon.

Source: Energy News Bulletin

Read more here

Feds to "turbo charge" oil and gas investment in Northern Australia

Sonia Harvey — Fri, 02 Oct 2020 07:00:42 GMT

THE MORRISON government is seeking to “turbo charge” investment in resources by broadening the scope of projects eligible for funding under the Northern Australia Infrastructure Facility.

The government NAIF fund has already provided $2.4 billion in financing for major projects across the Top End. Projects include Kalium Lakes' gas plant and lateral gas pipeline, and $37 million for Merricks Capital's Hudson Creek P12 MW gas power Station in Darwin.

It has also helped finance Genex Energy's pumped hydro project in northern Queensland and some solar and wind renewables projects. Its largest single finance in the energy sector is worth $500 million.

Under new plans announced on Wednesday, the NAIF will be expanded to encourage new investment in oil and gas, among other industries.

"The reforms to NAIF will ensure the $5 billion facility will have more flexibility to bankroll investment in a wider range of projects across Northern Australia," minister for Resources, Water and Northern Australia Keith Pitt said in a statement.

"We have listened to stakeholders in the north, and are making changes to the NAIF, more flexibility will help drive economic recovery and population growth."

Eligibility was previously restricted to funding for physical construction works only. This will now be scrapped to allow proponents to apply for funds including equipment purchases, training, and general expansion of existing business operations.

The government said it would ensure the NAIF could "take a more holistic approach" to supporting economic growth.

Source: Energy News Bulletin

Read more here

Totally gas-fired

Sonia Harvey — Fri, 02 Oct 2020 06:58:28 GMT

FRANCE’s Total will become Total Energies as part of its outline to change its business model and lower emissions in the next decade and predicts gas will feature heavily in its portfolio.

The company plans to be selling 50 million tonnes of LNG per year by 2025, with cash flow from its LNG business to rise by 40% to US$4 billion per year by then, assuming a $50 per barrel oil price. It plans to decarbonise gas with biogas and hydrogen, while reducing fugitive emissions.

It already has two hydrogen projects in Europe under development, trialling both methane-sourced hydrogen and renewable-sourced hydrogen

Overnight the French supermajor, which holds a share in the Ichthys LNG project in Australia and Gladstone LNG in Queensland as well exploration permits in the Browse Basin, released its new energy strategy.

It plans to increase production by a third or to 3-4 million barrels of oil equivalent per day by 2030, with half of that from LNG and the other half from electricity from renewables.

It plans to spend 20% of capital investment on renewables in the coming decade, or $2-$3 billion per year. It already has a renewable footprint in Australia holding 55.66% of solar panel company SunPower and has a 33.86% interest in the Kiamal solar farm in Victoria, which will have 250 megawatt capacity when built.

This production rise is in stark contrast to European peer BP which plans to cut 40% of production in the same time and Shell may yet follow down the same path, according to unnamed sources speaking to Reuters.

Shell will furnish more details at its investor day, later this year. However both Shell and BP plan on huge scale ups in their investments in renewables.

Source: Energy News Bulletin

Read more here

Ichthys sends 200th cargo

Sonia Harvey — Fri, 25 Sep 2020 07:13:14 GMT

INPEX has sent its 200th LNG cargo from its Ichthys LNG project 11 months after sending cargo 100 from its Darwin facility on Bladin Point. Inpex made the announcement via LinkedIn yesterday.

It said the cargo is bound for Chiba, Japan.

"The Energy Advance vessel loaded with 145,000 cubic metres of chilled LNG and is on its way," it said.

Inpex has delivered 345 cargoes, with the remainder made up of LPG and condensate cargoes.

Condensate sales in Western Australia for the 2019-20 year were worth $5.7 billion, with much driven by the Japanese-led project.

Though LNG departs Darwin, condensate is loaded from the Ichthys vessel moored offshore Western Australia in Commonwealth waters.

Ichthys, the first LNG project the company has ever operated, is a cornerstone of its business and the largest single investment by a Japanese company in Australia, though was dogged by cost blowouts and a late start up date.

Monday it submitted its plans to conduct an extensive drilling program as part of the next phase of the Ichthys development program to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

It will drill between 12 and 15 new development wells within production license WA-50-L in the Browse Basin. The wells will be tied back to the existing processing facility, the Ichthys Explorer.

The drilling program is expected to get underway in the first half of 2020 and take around five years to complete.

Source: Energy News Bulletin

Read more here

Empire to spud Carpentaria-1 today

Sonia Harvey — Wed, 23 Sep 2020 02:16:44 GMT

EMPIRE Energy confirmed this morning it will spud its Carpentaria-1 well in the Beetaloo Sub-basin with the Schlumberger Land Rig 183 rig now onsite at EP187.

Speaking to Energy News, drilling managing director Alex Underwod said "I'm proud we're an Aussie company playing a key role in the development of the basin".

It plans to drill the well to 2900 metres then log, case and suspend it. The team will evaluate unconventional targets the Velkerri and Kyalla shales, which have been independently certified by unconventional specialists Netherland, Sewell and Associates with a best estimate prospective resources of 2.4 trillion cubic feet of gas.

Drilling and formation evaluation will take 40 days, and the well design allows for suspension and future re-entry for fraccing and flow testing, which the company plans for the second quarter of next year.

Among other work the drilling will ‘high-grade' the target shales for either vertical or horizontal fraccing and flow testing planning and execution, and to refine existing seismic data to further determine resource estimates.

The evaluation program will include mudlogging, measurement while drilling, cuttings sampling and continuous gas analysis, isotube and isojar sampling programs, wireline logging, large diameter rotary sidewall coring and diagnostic fracture injection testing.

It comes just as Origin Energy and partner the Irish Falcon Oil & Gas begin fraccing the big budget Kyalla well earlier this week and after a period of quiet through a fraccing moratorium work begins again in the highly prospective, frontier area.

"I note Origin Energy is back in the field now, things are ramping up," Underwood said.

"We're on Aborginal land so the approvals are from Traditional Owners and we've worked very hard over a number of years to seek their support," he said.

"What we found is that the vast majority of local people are supportive as they want to see economic development in their local area and we understand that there are some members of the broader community concerned over the environmental impact and we take that seriously."

Source: Energy News Bulletin

Read more here

Green hydrogen "nirvana": Coleman

Sonia Harvey — Wed, 23 Sep 2020 02:13:39 GMT

WOODSIDE Petroleum CEO Peter Coleman declared yesterday that the market needed to start preparing for the future hydrogen economy, noting the cost competitiveness of green hydrogen was likely to be reached within the next decade.

Speaking about the future of energy at Business News's leadership breakfast at the Perth Convention Centre, Coleman noted despite the buzz around hydrogen, there was still no market for it yet, and even when it comes there will still be challenges in transporting it.

However he said the company's trade partners, including Japan and Korea were rapidly creating the market for the gas, similarly to how the Japanese established the LNG market.

He noted hydrogen produced using steam-methane reforming was well known and could be done at scale, while the potential for green hydrogen, produced via electrolysis, was great.

"This is nirvana, it's making it from water," he said.

"It's great but there's nothing at scale, everything is bespoke, every electrolyser is made for the application that it's put into, so there's no massive scale and so there's no cost reduction," he said.

He referred to the EU's plans to build 6GW of green hydrogen electrolysers by 2024 which would help bring costs down, but said the true tipping point for electrolysers to be competitive would be when China starts to produce them at scale.

"It's going to be ten years in the coming, and we need to start now," he said.

"The technology is there, we know what the cost curves are like, we know what we need to do in the market, and there's a solution there, but you've got to manage the energy input with the production, and then you've got to distribute the darn stuff" he said.

Woodside has signed a memorandum of understanding with Korea Gas Corporation to study the feasibility of a green hydrogen export project, and is also on the Hydrogen Council's steering committee.

The Korean government aims to build 100 hydrogen refuelling stations in the country over the next four years.

Source: Energy News Bulletin

Read more here

Origin begins fraccing big budget Kyalla well

Sonia Harvey — Tue, 22 Sep 2020 02:18:29 GMT

ORIGIN Energy and its smaller Irish joint venture partner Falcon Oil and Gas have begun fraccing the Kyalla-

On Monday afternoon Falcon Oil and Gas, which holds a 22.5% stake in the Beetaloo project, told shareholders operator Origin Energy (77.5%) had commenced fraccing activities at the high-profile, high cost Kyalla-117 well.

The venture had been forced to abandon fraccing plans and completion of the Kyalla-117 appraisal well earlier this year after the pandemic led to movement restrictions and hard border closures.

The appraisal well has been labelled a "well to watch" by analysts and industry. The success of the well is seen as a litmus test of the prospectivity of the new frontier region and the challenges other operators, including Santos and Empire Energy may encounter.

Consultancy EnergyQuest put the well on its watch list last year, meanwhile the NT government has heralded it as a "new era" of domestic gas exploration. The peak body for the oil and gas sector, the Australian Petroleum Production Exploration Association has previously said the well would play a "vital role" in the future of the Beetaloo Sub-basin.

During drilling elevated gas shows with relatively high liquids were observed in all three of the target reservoirs encountered.

It aims to test the extent of the Velkerri liquids-rich gas play.

After fraccing the next phase of operations will be to production test the well.

"Initial results from this are expected by the end of the year, with full results in the first quarter of 2021," Origin said on Monday.

Source: Energy News Bulletin

Read more here

Drilling giant to cut emissions in half by 2030

Sonia Harvey — Mon, 21 Sep 2020 02:07:33 GMT

DANISH drilling multinational Maersk Drilling has pledged to cut its carbon dioxide emissions in half by 2030 as it looks to boost efficiency from its fleet of deepwater rigs.

Maersk is a major player in the Australian offshore oil and gas industry, alongside Noble Corp and Diamond Offshore, and is currently supplying semisubmersibles for Inpex's upcoming work for the Ichthys field.

It is the first of its kind to announce such major cuts to emissions. In an announcement on Friday it pledged to halve its emissions from current levels.

"Climate change is one of the greatest challenges facing our society today, and we want to do our part in addressing this," Maersk chief executive Jørn Madsen said.

"Expert consensus is that renewable energy will not be able to replace all traditional energy production within the foreseeable future. Therefore, the answer must be to provide affordable energy, including oil and gas, while keeping CO2 emissions under control."

Maersk's emissions reduction target is in line with most oil and gas companies' 2030 targets and supports the ambitions of the Paris Agreement.

To date the company has managed to upgrade two of its largest jackups to become low-emission rigs with battery storage and energy emission efficient software as well as an emissions capturing system which uses ammonia to convert gas into water and nitrogen.

Source: Energy News Bulletin

Read more here

Australia's economic saviour officially gas

Sonia Harvey — Tue, 15 Sep 2020 04:52:30 GMT

AUSTRALIA’s prime minister Scott Morrison, alongside the minister for energy Angus Taylor, and minister for resources Keith Pitt, today confirmed a gas-fired recovery to drive Australia’s economic growth, post-pandemic.

Today's release from the PM officially locks in the economic strategy the federal government will take to fend off a serious growing recession, and gas is at the heart of it, hoping to spur a manufacturing boom with low-priced feedstock.

"We'll work with industry to deliver a gas hub for Australia that will ensure households and businesses enjoy the benefits of our abundant local gas while we hold our position as one of the top global LNG exporters," Prime Minister Scott Morrison said.

"This is about making Australia's gas work for all Australians. Gas is a critical enabler of Australia's economy.."

Much of the plan is based on the recommendations of the National COVID Coordination Commission, headed by former mining executive Nev Power, but has not included a $4 per gigajoule price target, which received pushback from industry when a draft of the report was leaked earlier this year.

However it is committed to cheaper supply, and transparency with hopes to turn Queensland's Wallumbilla into a Henry Hub-like development in the US with clear pricing signals to market, to be called the Australian Gas Hub. It is also developing a National Gas Infrastructure Plan.

This will be done in part via a voluntary and industry-led code of conduct around pipeline use for producers and buyers to be developed by February next year.

It also wishes to "ensure Australians are paying the right price for their gas by working with the Australian Consumer and Competition Commission to review the calculation of the LNG netback price which provides a guide on the export parity prices and to use the NGIP to develop customer hubs or a book-build program that will give gas customers a more transparent and competitive process for meeting their needs."

It plans to essentially underwrite new pipeline development if industry does not step up to it, and ensure more gas supply into market to support lower prices and general price transparency via developing five key gas basins, beginning with frontier areas in the Beetaloo Sub-basin, North Bowen Basin and the Galilee.

The government will spend A$10.9 million to identify priority pipelines and critical infrastructure under its new NGIP and says this new plan will "highlight where the government will step in if the private sector doesn't invest".

"The government wants the private sector to step-up and make timely investments in the gas market. If the private sector fails to act, the government will step in - as it has done for electricity transmission - to back these nation building projects. This may include through streamlining approvals, underwriting projects or the establishment of a special purpose vehicle with a capped government contribution," it said this morning.

Source: Energy News Bulletin

Read more here

BOOSTING AUSTRALIA’S FUEL SECURITY

Sonia Harvey — Mon, 14 Sep 2020 05:05:55 GMT

THE HON SCOTT MORRISON MP

PRIME MINISTER

THE HON ANGUS TAYLOR MP

MINISTER FOR ENERGY AND EMISSIONS REDUCTION

SENATOR Dr SAM McMAHON

SENATOR FOR THE NORTHERN TERRITORY

MEDIA RELEASE

The Morrison Government is taking action to secure Australia’s long-term fuel supply, keep prices low for consumers and create over 1000 new jobs through a new domestic fuel security package.

As part of our 2020-21 Budget, the Government will deliver a $211 million investment in new domestic diesel storage facilities, reforms to create a minimum onshore stockholding, and measures to support local refineries.

This will be delivered through a combined market and regulatory framework, with three key elements:

· Investing $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage

· Creating a minimum stockholding obligation for key transport fuels; and

· Backing the refining sector by entering into a detailed market design process for a refinery production payment.

Prime Minister Scott Morrison said Australia’s fuel security was essential for our national security and that we had been fortunate to not have experienced a significant fuel supply shock in over 40 years.

“Our positive changes to the fuel market will ensure Australian families and businesses can access the fuel they need, when they need it, for the lowest possible price,” the Prime Minister said.

“Fuel security underpins our entire economy. Not only does it keep Australia moving, the industry supports thousands of people across the country and this plan is also about helping keep them in work.

“Like all sectors of the economy, the COVID-19 pandemic is having an impact on Australia’s fuel industry. The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future.”

Minister for Energy and Emissions Reduction Angus Taylor said the Government recognised that Australian refineries are under significant financial pressure and is committed to working with the sector to ensure it has a long-term future.

“Almost all Australians are reliant on fuel and it is the lifeblood of so many sectors in our economy. Our farmers and miners rely heavily on diesel to do their jobs and provide services, while the transport sector sources 98 per cent of its energy from liquid fuels,” Minister Taylor said.

“That’s why it is critical that Australia has control over its fuel security arrangements and the Government is making sure of that.”

CLP Senator for the Northern Territory, Dr Sam McMahon said the construction of additional diesel storage will not only secure our diesel supplies but will support up to 950 jobs, along with 75 new ongoing jobs, many in regional areas.

“Supporting our refineries will ensure Australia has the sovereign capability it needs for any event, protect families and businesses from higher prices and support thousands of jobs across the economy as we recover from COVID-19,” Senator McMahon said.

A minimum stockholding obligation will act as a safety net for petrol and jet fuel stocks, and increasing diesel stockholdings by 40 per cent.

The Government will work with industry over the next six months on the legislative and regulatory design of the package.

Refineries play an important role in securing Australia’s fuel security and putting downward pressure on fuel prices for consumers. Modelling has shown that a domestic refinery capability is worth around $4.9 billion (over 10 years) in value to Australian consumers in the form of price suppression.

The Government is committed to a sovereign on-shore refinery capacity. We will design a market system for a production payment that recognises the fuel security benefits Australia’s refinery sector provides. It will protect Australian families and businesses from the around 1 cent per litre increase that modelling shows will hit fuel if all refineries close in Australia. For refineries to receive support, they will be required to commit to stay operating in Australia.

The Government recognises that the future refining sector in Australia will not look like the past. However, this framework will protect Australian families and businesses from higher prices and will secure jobs in the fuel sector and in fuel-dependent industries, such as our farmers, truckers, miners and tradies.

Additional measures will also be introduced to reduce the burden on industry and improve fuel market information.

This includes modernising the online fuel reporting system to make it easier for industry to report stock levels to Government and improve the timeliness of data. The Government will also remove the application fees for fuel standard variation requests.

This domestically-focused package builds on Government action to purchase up to $94 million of crude oil at record low global prices to be stored in the US Strategic Petroleum Reserve for access during a global emergency.

ENDS

Media contacts:

Minister Taylor’s Office: Liam O’Neil, 0428 113 617

Senator McMahon’s Office: 08 8948 3555

Empire mobilises rig for Beetaloo well

Sonia Harvey — Thu, 10 Sep 2020 05:25:13 GMT

EMPIRE Energy has mobilised its Schlumberger drill rig to its Beetaloo Sub-basin site to spud well Carpentaria-1.

It plans to drill the well to 2900 metres then log, case and suspend it.

The work will represent "a major step forward in Empire's assessment of the eastern Beetaloo Sub-basin and the further appraisal of the known productive horizons within the thick Kyalla Shale and Velkerri Shale sequences," the company said today.

Santos and Origin Energy have found them to be productive in their respective wells, to the west of where Empire will drill.

The Schlumberger Land Rigs 183 will start drilling in the second half of the month.

Civil works including water bore drilling, upgrading the access track and preparing the well pad are ongoing. All work is being done by Northern Territory-based companies.

It will re-enter Carpentaria-1 after the wet season to carry out vertical fraccing and an extended production test.

The company raised $10 million via a placement last month.

The placement to institutional and sophisticated investors was offered at 30 cents per share, doubling its cash in the bank to A$20 million.

Independent certifiers Netherland Sewell and Associates gave its permit EP187 a best estimate prospective resource of 13.6 trillion cubic feet of gas, with 2.3Tcf in the Velkerri Shale and 14 million barrels of oil equivalent in the Kyalla shale.

Source: Energy News Bulletin

Read more here

Work on pipeline connecting Beetaloo to Darwin underway

Sonia Harvey — Tue, 08 Sep 2020 05:30:43 GMT

CNC Project Management has been awarded a contract to plan out the route for a vital pipeline that will connect the Beetaloo Basin to Darwin.

The pipeline will be the "missing piece" of the puzzle in developing the massive onshore Beetaloo Sub-Basin.

According to tender documents, the Northern Territory government has given a contract worth $327,140, to CNC to carry out scoping and pipeline route planning.

The proposed pipeline will be 100-metres wide and run through a corridor near the Stuart Highway, through Katherine and Pine Creek, to Darwin's industrial area.

Under the pre-feasibility study scope, CNC will be required to consider landowner arrangements where the pipeline will be laid. CNC will also consider engineering, geotechnical, environmental, and financial considerations.

"This is aimed to provide clarity to the Gas Taskforce and Government for future decisions regarding acquisition of a corridor to transport gas from onshore reserves to existing and planned gas industry infrastructure," the tender documents state.

The award comes as the Northern Territory government looks to fast-track onshore oil and gas exploration in an effort to support a potential manufacturing industry in the Top End.

Currently Origin Energy, Falcon Oil & Gas, Santos, Armour, and Empire Energy are exploring vast potential liquids rich gas resources across the Beetaloo and broader McArthur basins.

Source: Energy News Bulletin

Read more here

New Ministry to Lead the Territory’s Economic Recovery

Sonia Harvey — Mon, 07 Sep 2020 07:13:46 GMT

Chief Minister Michael Gunner has today announced the members of the new Northern Territory Government’s Ministry.

The new Cabinet’s task is to keep steering the Territory through the coronavirus crisis and make the Territory Australia’s comeback capital.

This is a jobs-first Cabinet. The economic recovery team is spearheaded by the Chief Minister who will also be Treasurer, Minister for Major Projects and Territory Economic Reconstruction, and Minister for Strategic Defence relations.

Deputy Chief Minister Nicole Manison will lead a major jobs-focused ministry as Minister for Mining and Industry, Minister for Northern Australia and Trade, Minister for Defence Industries, Minister for Agribusiness and Aquaculture, and Minister for International Education.

These portfolios represent many of the Territory’s most important industries and our biggest job-creating opportunities for the future. They are integral to making the Territory the comeback capital.

Minister Manison will also continue to serve as Minister for Police, Fire and Emergency Services.

Natasha Fyles will continue as Leader of Government Business in the Legislative Assembly. She will also continue her excellent work as Health Minister, to help keep the Territory the safest place in Australia.

In continuing as Police Minister and Health Minister, Ms Manison and Ms Fyles will also keep serving on the Security and Emergency Management Sub-Committee of Cabinet, ensuring certainty and continuity during this public health emergency.

Minister Fyles has been tasked with working with the federal government to pursue opportunities for the Howard Springs facility to be a centre for national resilience, recognising the important role it has played during this crisis, as Minister for National Resilience.

In addition to these tasks, Minister Fyles will also take on a senior role in our economic team as Minister for Tourism and Hospitality, Minister for Major Events, and Minister for Racing, Gaming and Licencing.

The Territory’s tourism and hospitality industry is a fundamental pillar of the Territory’s economy and a massive job creator. It has been hit hard by the coronavirus crisis, and the Territory cannot have a strong economic recovery without a strong tourism sector. Minister Fyles is in charge of making sure our tourism industry helps lead our comeback.

Minister Fyles will also continue as Minister for Alcohol Policy, entrenching the ground-breaking reforms the Government has delivered in this area.

Eva Lawler will take on a super-portfolio as Minister for Infrastructure, Planning and Logistics, Minister for Renewables and Energy, Minister for Environment, Climate Change and Water Security, and Minister for Essential Services.

Eva will continue to oversee our unprecedented infrastructure program which has supported thousands of jobs in hard times, while also driving the jobs of the future in renewables.

Paul Kirby completes the Cabinet’s economic recovery team as Minister for Small Business, Minister for Jobs and Training, and Minister for Public Employment.

Minister Kirby will also serve as Minister for Corporate and Digital Development, Minister for Veterans Affairs and Minister for Recreational Fishing.

Lauren Moss will be appointed Minister for Education, Minister for Women, Minister for Youth, Minster for Seniors, and Minster for Children.

As part of their new responsibilities, Minister Moss and Minister Kirby have been tasked with ensuring there are training and job pathways for our young Territorians who are close to completing their education and entering an uncertain employment market in the middle of a global recession.

Selena Uibo will serve as Attorney-General and Minister for Justice, Minister for Aboriginal Affairs, Minister for Treaty and Local Decision Making, and Minister for Parks and Rangers.

While we made huge strides in our first term on delivering housing, jobs and justice for First Nations Territorians, there is still much more to do, and Minister Uibo will lead our work on Aboriginal advancement.

There are two new appointments to the Cabinet, selected by the Labor caucus today.

Kate Worden joins Cabinet as Minister for Territory Families and Urban Housing. Combining these two critical portfolios will help ensure information is shared more efficiently, and the teams can work closely together. This will deliver better outcomes for vulnerable Territorians and help make sure families don’t fall between the gaps.

Ms Worden will also serve as Minister for Disabilities, Minister for Sport, and Minister for Multicultural Affairs.

Chansey Paech joins Cabinet as Minister for Local Government, Minister for Remote Housing and Town Camps, Minister for Indigenous Essential Services, Minister for Central Australia Economic Reconstruction, and Minister for Arts and Culture.

Mr Paech will be a strong voice for Central Australia and remote communities in the Cabinet, and ensure the whole Territory is part of the comeback. He takes on responsibility our massive remote housing program – one of the Government’s most important commitments.

The Machinery of Government changes that will be effected as part of the new Cabinet reduces the number of agencies from 15 to 11. The combination of portfolios will ensure government works more efficiently and effectively for Territorians through swifter action and decision making, and delivers an estimated budget saving of $5 million.

Quotes attributable to Chief Minister Michael Gunner:

"Territorians have asked us to keep working for them and that’s exactly what we will do.

"This is the comeback capital Cabinet. Our job is to turn this once-in-a-century crisis into a once-in-a-century opportunity, and make the Territory Australia’s comeback capital.

"Our team has the right mix of energy and experience to keep controlling the virus, keep the Territory safe, and to put us onto the road to recovery.

"Putting the Territory first means putting jobs first. Our economic team are all focused on jobs.

"We will come out of this crisis with a jobs-led recovery. My team and I will keep doing whatever it takes to protect jobs and create jobs for Territorians."

GUNNER MINISTRY.pdf (pdf 86 kb)

From: Chief Minister of the Northern Territory

Shell Australia attempts to bring Prelude FLNG back online

Sonia Harvey — Mon, 07 Sep 2020 02:34:26 GMT

SUPERMAJOR Shell has begun the process of re-starting production from its fields connected to the Prelude Floating LNG vessel offshore Western Australia, however is facing difficulties eight months after the facility was shut down over engineering problems.

Shell Australia confirmed to Energy News that it had begun the process to produce gas from its Browse Basin fields 475 kilometres offshore Broome on Friday afternoon.

"The process for hydrocarbon restart of Shell's FLNG facility has commenced," a Shell Australia spokesperson told Energy News on Friday.

"Once we have safely started up, we will be in a stronger position to talk about timing of production and cargo."

However, according to one source on board the vessel the restart had some issues with "multiple trips" of the plant and two swivels inside the turret that moors the giant LNG facility in place.

Engineering sources said it was unlikely that the vessel would be back online until next year.

Prelude has now been offline for about eight months. The US$12 billion LNG facility was an engineering feat when it was initially brought into production in mid-2019.

In January 2020 the 6000-tonne facility hit engineering problems and was shuttered in early February.

Prelude has a production capacity of 5.3 million tonnes a year of liquids and condensate, including 3.6 million tonnes per year of LNG.

Source: Energy News Bulletin

Read more here

Nominate a Resilient Territory Business for the 2020 Chief Minister's NT Export and Industry Awards

Sonia Harvey — Fri, 04 Sep 2020 02:28:36 GMT

Nominations are open for the 2020 Chief Minister's NT Export and Industry Awards presented by Chamber of Commerce NT.

This year the Awards will give recognition to our NT exporters and industry leaders who have shown resilience and adapted quickly in response to COVID19 and the restrictions and economic crisis that it has brought with it. Finalists and winners will be celebrated at a gala dinner presentation on 6 November.

Export Award categories include Agribusiness and Food, Technology and Innovation, Natural Resources and Related Services, Business Services and Support, International Education and Training, Frontline Business, Regional Business and more.

Local Industry Awards include: Manufacturing Industry, Resource Supply and Service, Indigenous Business, Industry Innovation and more.

Nominations are open until midnight Monday 14 September and we encourage you to nominate resilient Territory businesses!

For more information and to download a nomination form, visit https://www.chambernt.com.au/ibc-content/export-awards

Hydraulic fracturing Community Bulletin #34

Sonia Harvey — Fri, 04 Sep 2020 02:25:39 GMT

SREBA studies update

The NT Government has determined that a Strategic Regional Environmental and Baseline assessment (SREBA) is required for the Beetaloo Sub-basin, in accordance with recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing.

The Framework and technical guidance notes for each of the studies can be found at here. There are six domains that comprise a SREBA, which are all at different stages of progression and are detailed below. A SREBA must be completed before any production approvals for unconventional gas activity occurs.

Social, Cultural and Economic Baseline Studies and Strategic Regional Assessment
Circle Advisory has been appointed to carry out independent studies in the Social, Cultural and Economic domain as a part of the SREBA for the Beetaloo Sub-basin.

Initial engagement and stakeholder contact to co-design a scope of works for the Social, Cultural and Economic studies is commencing this week.

Over the next three months, Circle will be talking to people and organisations throughout the region about what should be measured and how people might want to be involved in these studies. Circle will also be available to meet and talk with people when they visit local towns and communities during the development of the scope of works.

The full baseline studies will commence next year, once the scope of works has been developed and approved by the Minister for Environment and Natural Resources.

Progress updates for the remaining five SREBA domains in the Beetaloo Sub-basin

Terrestrial studies: Detailed environmental mapping has been undertaken in the Beetaloo as part of the Geological and Bioregional Assessment (GBA) program, with further ecological studies as part of the SREBA to commence later this year, once the scope of works is agreed.
Aquatic studies: Some work has been undertaken as part of the GBA, with further studies under SREBA to commence later this year once the scope of works is agreed.
Water studies: Some groundwater studies have been undertaken as part of the GBA program, and the development of a scope of works for further surface and groundwater studies under SREBA is well underway.
Greenhouse gas studies: Initial baseline assessments were undertaken in the region during 2018-2019, with further work to commence later this year in order to build a more comprehensive baseline.
Environmental health studies : A call for tenders for the design and development of the environmental health studies will be released in the coming days.

Please direct all correspondence to:
Hydraulic Fracturing Inquiry Implementation Taskforce
GPO Box 4396, Darwin NT 0801
T 08 8999 6573
E hydraulic.fracturing@nt.gov.au
W hydraulicfracturing.nt.gov.au

NAIF approves gas and solar power plants in the NT

Sonia Harvey — Wed, 02 Sep 2020 02:37:41 GMT

THE federal government will provide A$37 million for two new electricity generation projects in the Top End, a 12-megawatt gas-fired power plant in Darwin and a 10MW solar and battery farm near Batchelor, 100 kilometres south of Darwin.

The government will provide Merricks Capital the funds via its Northern Australian Infrastructure Facility, taking the value of approved projects from the facility to $830 million.

The NAIF financing mechanism is provided at a fixed rate with interest rates and payback periods determined separately for each individual project.

"These new energy projects will help modernise Darwin's energy grid networks and reduce reliance on older and less efficient gas and diesel generators," resources minister Keith Pitt said in a statement.

He said the two projects would link up with existing transmission infrastructure between Darwin and Katherine, and will supply up to 90% of future electricity generation needs for the Northern Territory's largest energy retailer Rimfire.

The Hudson Creek power station and the Batchelor Solar and Battery Farm would create around 160 new jobs during the construction phase, according to the government.

Under the funding agreement, Merricks will also work with the Larrakia National Aboriginal Corporation to deliver a range of initiatives which the government said included cross-cultural awareness training to employees and contracts.

Source: Energy News Bulletin

Read more here

NERA unveils national seed funding program as first major step towards creating Australia’s future hydrogen technology cluster network

Sonia Harvey — Wed, 02 Sep 2020 02:31:09 GMT

Hydrogen and hydrogen-related technologies represent the next big energy opportunity for Australia

Australia is well-positioned to play a leading role in the emerging hydrogen energy market, having the resources, infrastructure, proximity and established trade relationships with key markets in Asia, and demonstrated know-how to reliably, safely and efficiently scale production and export of technology, capability and energy resources.

With the right focus on high value skills and commercialising intellectual property, an Australian hydrogen industry could conservatively produce an increase to Australian Gross Domestic Product (GDP) of up to $11 billion on a Net Present Value (NPV) basis and 7,600 jobs by 2050 [1]. This includes a range of technical and trade occupations, with many of these in regional areas.

Australia’s National Hydrogen Strategy (NHS) [2] outlines the nation’s path to becoming a global hydrogen player, through building a strong domestic hydrogen sector that will underpin Australia's exporting capabilities. The NHS supports NERA to lead the establishment of a National Hydrogen Cluster to help grow capabilities and drive industry collaboration across the hydrogen value chain and ensure that Australian companies are well placed to supply new technology, products and services to domestic and international markets.

Developing regional clusters around key hydrogen projects and infrastructure hubs (see: Arup study for COAG Energy Council), or in regions that will service those hubs (e.g. metropolitan areas, such as Perth or Brisbane), will help to enhance local cohesion and capability in the hydrogen value chain.

As part of the National Hydrogen Cluster Consultation Workshops held earlier this year, NERA recognised that in order to establish a successful National Hydrogen Cluster, a bottom-up approach is first required to tap into networks and capabilities that already exist. The consultation workshops were held in each state and territory, including the regional energy centres of Gladstone, Darwin and Karratha, and engaged with almost 300 hydrogen industry professionals across the value chain. To view the findings of this engagement, click here.

NERA’s Hydrogen Seed Funding Program supports the formation of a network of hydrogen technology clusters around Australia. These clusters can accelerate and optimise the development of hydrogen technology and expertise. Once established, this network of hydrogen clusters will play a central role in connecting to establish the national cluster — which is proposed to operate as a virtual network. The national cluster aims to establish a global identity and a recognised brand for Australian hydrogen technology and expertise, accelerate hydrogen supply chain development, and reduce overlaps and identify gaps in the development, deployment, and commercialisation of new technologies.

For more information visit: https://www.nera.org.au/regional-hydrogen-technology-clusters

Empire raises cash for Beetaloo exploration

Sonia Harvey — Wed, 26 Aug 2020 05:09:07 GMT

EMPIRE Energy has raised A$10 million through a placement to fund its upcoming drilling campaign in the Northern Territory’s Beetaloo Sub-basin.

The placement to institutional and sophisticated investors was offered at 30 cents per share, doubling its cash in the bank to A$20 million.

Empire is planning to drill its Carpentaria-1 in permit EP187 next month, using a Schlumberger rig.

Empire managing director Alex Underwood said he was "pleased with the strong level of support" from the capital raise.

"Empire is now well funded to progress its planned work programs across its extensive holdings in the Beetaloo and McArthur basins," Underwood said.

"We believe [our tenement] will create substantial value for our shareholders, broad and sustainable economic benefits to the people of the Northern Territory, and energy security for Australia and the broader region."

Civil works, including well pad construction, and water bore drilling began earlier this month.

The Carpentaria-1 exploration well will be a vertical well drilled to a depth of 2900 metres and targeting the Velkerri Shale Formation.

Contractor InGauge, and Empire Energy, have designed the well to include an extensive evaluation program consisting of coring which will give valuable insight into the geology of the target formations.

This data would then form the basis of the next phase work program and recoverable volumes of oil, gas and liquids.

Source: Energy News Bulletin

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GR Engineering posts $10M loss due to Northern Endeavour fiasco

Sonia Harvey — Tue, 25 Aug 2020 05:26:40 GMT

ASX-LISTED oil and gas contractor GR Engineering, which provided services to Northern Oil & Gas Australia at the Laminaria and Corallina oilfields in the Timor Sea, has posted a A$9.7 million loss before tax in its full year results today.

GR Engineering provided services to the now liquidated NOGA for its Northern Endeavour floating production storage and offloading vessel which produced oil from the two fields.

However, an impairment to its subsidiary Upstream Production Solutions saw writedowns of about $17.6 million when NOGA went bust and ultimately fell into receivership and then liquidation.

"The financial year 2020 results were negatively impacted by the impairment of an outstanding receivable owed by Timor Sea Oil & Gas Pty Ltd," GR managing director Geoff Jones said.

Timor Sea Oil & Gas was one of four subsidiaries operated by NOGA.

Despite the negative impact of the NOGA liquidation the company still posted revenue of $222.4 million with underlying EBITDA of $11.3 million.

At June 30 the company had $37.5 million cash in the bank. This was up significantly from the $20.7 million it had in the bank at December 31 2019.

Jones called the company's position "well capitalised" and noted its 2021 pipeline of new work was worth around $170 million.

Source: Energy News Bulletin

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Australia's hydrogen export future depends on government action

Sonia Harvey — Tue, 25 Aug 2020 05:10:55 GMT

A RECENT report from the Institute for Energy Economics and Financial Analysis (IEFFA) has warned that a lack of government funding along with inaction around policy settings means that Australia could lose its leading position as a future hydrogen powerhouse.

The report titled Great Expectations followed the unveiling of Europe's Hydrogen Strategy - largely based on green hydrogen production - but focuses on the role that Australia and Asia more broadly will play in the future energy export space.

According to IEFFA financial analyst Yong-Liang Por there are around 50 viable hydrogen projects announced over the last financial year, with a total capacity of 4 million tonnes of renewable hydrogen per annum and a power capacity of 50 gigawatts.

"The biggest projects are being planned for Australia and the Middle East, as economies of scale are required for export-orientated plants," Yong-Liang Por said.

While Australia is poised to take advantage of its proximity to Asian gas markets, there is however a "serious risk" that some projects may fall by the wayside due to "unfavourable economics and a lack of financing" along with government planning.

"Governments need to urgently back this industry by developing policy settings encouraging private industry to invest the much needed capital, given the industry must ‘learn by doing'," Por said.

Por said Australian policy makers needed to ensure a future hydrogen economy and robust export market based on hydrogen would require transitioning ports from coal to hydrogen.

"With the green hydrogen industry still in its infancy, it is important for ports to move quickly to establish themselves as a hydrogen centre through promotion as a usage, production, import and trading hub," Por said in his report.

These ports, in Queensland and Western Australia, are already close to potential production sites for hydrogen plants. Key markets would include Japan, Korea and Europe, already important markets for Australia's current energy exports.

According to the report, Australia's exports of hydrogen were more likely to come in the form of liquified hydrogen, owing to the country's already well-established LNG expertise and infrastructure.

Hydrogen must be stored at minus 253°C versus LNG at minus 163°C, calling for tankers with more sophisticated insulation.

Creating a large enough fleet in time to beat other countries is ambitious, although IEFFA noted Japan had begun building its first liquified hydrogen gas tanker in December last year.

Trials of liquified hydrogen cargoes are expected to begin by March next year.

Por noted that Australia had the "most ambitious" hydrogen export plans but initial projects were backed by companies with a "lack of resources" to drive successful completion.

This is despite BHP and Woodside Petroleum being shortlisted for the Australian Renewable Energy Agency's $70 million hydrogen funding round. AllianceBernstein noted last week the two were some of the earliest movers in the oiler space.

"In Australia at present, most hydrogen ventures are pilot projects and are regulated on a case-by-case basis without the need for lengthy formal assessment and approval processes," Por said.

That said if these pilot projects are successful, it would be likely that public consultation and further assessments would be needed, which would in turn lengthen project delivery schedules. Australia by no means is ready to win the hydrogen export race.

Source: Energy News Bulletin

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Santos confirms Bayu Undan field life extension

Sonia Harvey — Fri, 21 Aug 2020 05:35:55 GMT

SANTOS reported a profit drop of almost 50% yesterday and a share price fall of over 4% but CEO Kevin Gallagher charted a way forward even after project deferrals, capital spend cut and write downs.

This included confirmation of a three-well infill campaign at the Bayu Undan field first flagged in its second quarter results, which Santos expects to extend the legacy gas field's life out to 2025.

Santos will drill two platform wells and one subsea well with sanction planned for the end of the year, Gallagher said.

It will be the first campaign drilled with Santos as operator of the offshore asset, which is now fully under Timor-Leste jurisdiction since the small nation ratified the maritime boundary treaty with Australia last year.

It will also provide ongoing revenue to the nation given royalties from the field are its single largest source of revenue.

This included confirmation of a three-well infill campaign at the Bayu Undan field first flagged in its second quarter results, which Santos expects to extend the legacy gas field's life out to 2025.

Santos will drill two platform wells and one subsea well with sanction planned for the end of the year, Gallagher said.

It will also provide ongoing revenue to the nation given royalties from the field are its single largest source of revenue.

Source: Energy News Bulletin

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Kyalla venture back in the Beetaloo

Sonia Harvey — Fri, 21 Aug 2020 05:27:54 GMT

ORIGIN Energy and its joint venture partner Falcon Oil & Gas are heading back to the Beetaloo, months earlier than first anticipated when the COVID-19 pandemic hit Australia.

The venture was forced to abandon fraccing plans and then completion of the Kyalla-117 appraisal well earlier this year after the pandemic led to movement restrictions and hard border closures.

Kyalla has been labelled an exciting ‘well to watch' by many in the industry.

Yesterday, the junior stakeholder Falcon Oil & Gas (22.5%) said the two companies would restart activities at the wellsite within months. Origin also mentioned its intention to be back in the region by the end of the year in its latest financial report.

Subject to another breakout of coronavirus in the NT, Origin and Falcon plan to frac the well within this quarter or next.

Once fraccing is completed, an extended production test will follow. The results of this test are expected late this year, or potentially early next.

The test will form the basis of a commercialisation plan and future exploration for liquids and gas in the Velkerri formation across the basin.

"We look forward to the next phase of operations with the fracture stimulation of the Kyalla-117 well and will update the market as results become available," Falcon chief Philip O'Quigley said.

Falcon sold down a further 7.5% interest to operator Origin in April, an agreement aimed at cutting the junior partners' costs.

Under the agreement Origin will carry Falcon for a further $25 million worth of future work at the well.

Kyalla-117 was drilled to a total depth of 3809 metres with a 1579 lateral section in February.

During drilling elevated gas shows with relatively high liquids were observed in all three of the target reservoirs encountered.

If the well proves as commercial as the venture expects, there are multiple commercialisation opportunities, including the Amadeus to Moomba pipeline announced just yesterday by Australian Gas Infrastructure Group and Macquarie.

The new $1 billion pipeline will see gas from the NT piped directly to Santos' Moomba gas supply hub in South Australia.

Source: Energy News Bulletin

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Territory Story podcast features Origin's Stephanie Stonier

Sonia Harvey — Fri, 21 Aug 2020 02:40:32 GMT

"Territory Story" is a popular podcast run by Peter Gowers (Oppidanus Digital Marketing) and Leon Loganathan (Ward Keller).

118. Stephanie Stonier - Fracking in the Territory

125. Stephanie Stonier - Response to Terry Mills on Fracking

Stephanie Stonier is the Corporate Affairs Manager (Northern Australia) for Origin Energy. Stephanie now has two podcasts online with Territory Stories including her personal story and how she has been involved in industry followed by her response to

Born in Perth, Stephanie is the daughter of a Vietnam Veteran. Growing up, she suffered heart palpitations than were eventually identified in her twenties as associated with the possible effects of Agent Orange.

Stephanie went to work for Rio Tinto including a stint in Mongolia before taking on the role with Origin Energy and being the face for the company’s commitment to fracking in the Northern Territory.

On these episodes of Territory Story, she speaks candidly about her life and her role in promoting the science and the benefits of fracking.

New pipeline to connect NT gas to East Coast Market

Sonia Harvey — Wed, 19 Aug 2020 05:45:48 GMT

CENTRAL Petroleum will send gas from its Amadeus Basin gas fields in the Northern Territory to the east coast gas market through a new proposed pipeline to be developed by Australian Gas Infrastructure Group and Macquarie.

Yesterday after markets closed, Central told shareholders it had signed the agreement with AGIG which would see the company ramp up production from its three currently producing gas fields and pipe the gas to Santos' Moomba gas supply hub in South Australia through a new pipeline.

Central will drill a series of development wells across the Mereenie, Palm Valley and Dingo gas fields, and also upgrade and debottleneck its existing infrastructure.

The pipeline is an answer to one of the most complicated commercialisation challenges across the onshore NT region, allowing gas produced from the central NT to reach the east coast gas market which is facing gas supply shortfalls by 2024.

Currently gas produced from the onshore NT is piped more than 2200 kilometres through a pipeline that connects to Mount Isa and then doubles back on itself to Moomba. The Northern Gas Pipeline is owned and operated byJemena.

This new pipeline proposed by AGIG will be "less than half" that distance, about 950km, and make piping gas to Moomba significantly cheaper, according to AGIG. It would cost more than $1 billion.

The pipeline will have a 16-inch diameter and have the capacity to pipe 124-terajoules of gas per day with an option to expand that capacity with compression.

"We are delighted to partner with Central Petroleum and Macquarie Mereenie by signing a memorandum of understanding for the development of this significant new pipeline," AGIG chief Ben Wilson said.

AGIG is owned by Hong Kong-based CKI Group, which was nixed from buying fellow pipeliner APA Group by newly appointed Treasurer Josh Frydenberg in 2018 over foreign investment concerns.

Wilson noted the pipeline development would be a major piece of infrastructure for gas markets in the NT and Eastern Australia.

Not only is it good news for Central Petroleum in the Amadeus Basin, but an important development for all onshore regional players including Santos, Empire Energy, and Origin Energy which are all planning major gas exploration and appraisal in the nearby Beetaloo Sub-Basin, which an expansion could connect it to.

It will allow Santos to connect its Dukas well, which it also shares with Central Petroleum, to the east coast gas market, a major win for the NT gas hopeful.

Work on front-end engineering and design has already been conducted, as part of a process AGIG completed in 2015. A final investment decision will be made in the second half of next year.

Construction would then begin in 2022 with first gas deliveries by 2024. This would be the same year the Australian Energy Market Operator expects major gas supply shortfalls and a stark lack of gas across the east coast.

Source: Energy News Bulletin

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Woodside and Santos poised to win hydrogen race: Bernstein

Sonia Harvey — Wed, 12 Aug 2020 05:17:08 GMT

THERE is great uncertainty as to how oil and gas companies will adapt to the hydrogen era given there are many synergies but a move to carbon-free gas, transport and heating will also ultimately hasten the end of the fossil fuel era.

A comprehensive report from AllianceBernstein this week notes that only certain companies will adapt, and among those globally are Australia's Woodside Petroleum and Santos.

It sees Equior as the most progressive, but notes Shell, BP and China's Sinopec have announced hydrogen strategies also.

However, hydrogen will have no impact on near term earnings, it says.

Woodside has made a series of recent hydrogen investments including fuel cell charging stations in South Korea and green ammonia, which can be used as a carrier of green hydrogen as an alternative to liquefaction -- which occurs at a far cooler -260 compared with natural gas' -160 - and Santos has a carbon capture and storage project and associated hydrogen plans.

"Oil & gas companies, gas utilities, and automotive manufacturers are some of the industries most threatened by hydrogen. Those that embrace the energy transition may survive and even thrive, while those that do not risk being confined to history," it said.

Overall hydrogen may finally play a major role in future decarbonisation after several false starts as costs fall and the cost of green hydrogen in particular -- which is made via using renewable energy to split water into its two components -- falls to US$2 per kilo and fuel cell costs to $30 per kilowatt from $200/kW now.

"Investment in hydrogen will likely be enormous, but so will revenues, with over $1.2 trillion in annual revenue from hydrogen by 2050. Transport will likely be the most material at $350 billion, followed by industrial energy at $260 billion and building heating and power with $180 billion in revenues," it said.

Source: Energy News Bulletin

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Armour pays down debt and brings in the cash

Sonia Harvey — Tue, 11 Aug 2020 05:47:56 GMT

AUSTRALIAN onshore oil and gas explorer Armour Energy has paid down a note facility and shored up its bank account through a divestment and funds from a farm-in agreement with Santos.

Armour Energy chief Brad Lingo told shareholders the company would pay A$5.3 million in early principal amortization payments and expected the ASX-listed business to receive $10 million through asset transactions by the end of this month.

"The company is delivering on the equity raise target and will shortly receive the $10 million in asset transactions," Lingo said.

It will receive $4 million through the sale of its interest in production license PL1084. Armour had a 10% stake in the CSG license known as the "Murrungamba Block" and announced it was selling it to Australia Pacific LNG earlier this year.

A further $6 million is expected to be received this month from Santos - which is farming-in to six permits in the South Nicholson Basin.

Under the agreement Santos will make a one-off cash payment of A$6 million and then carry the junior partner for around $65 million worth of exploration costs.

With a significant amount of cash to hit the bank accounts in the short-term, Armour said it could justify paying debt further. By paying down the further $5.3 million in payments, Armour had now paid back nearly $10 million in debt over the last six months.

This leaves the company with about $45 million in outstanding secured amortising notes.

It also closed its entitlement offer, which it launched last month, raising a total of $2.19 million from existing shareholders.

The remaining funds from the capital raise, and the transactions, will be used to fund work programs over the remainder of the year.

Source: Energy News Bulletin

Empire contracts Schlumberger for NT well

Sonia Harvey — Tue, 11 Aug 2020 05:43:13 GMT

EMPIRE Energy has contracted Schlumberger to drill its awaited Carpentaria-1 well in the EP187 Beetaloo Sub-basin with civil works to begin this month.

Schlumberger's Land Rig 183 will drill, case and suspend the 2900 metre deep well which will test the Velkerri and Kyalla shales.

Empire said the well's design allows for future reentry, fraccing, and flow testing which it expects after the coming wet season.

This will be the precursor to a planned multi-staged fracture stimulated and tested horizontal section which may be drilled from the same well bore.

The rig was "determined to be the most commercially efficient to operate and mobilise with a strong track record of recent performance dril similar wells onshore Australia and an experienced crew," it said.

Managing director Alex Underwood called the contract a "key milestone".

"Empire will be the only the second company to drill a well in the Northern Territory's onshore Beetaloo Sub-basin the lifting of the moratorium in 2018, after Origin Energy which drilled Kyalla-117.

"We intend to be a long term contributor to the Northern Territory economy and to that end I am pleased that we have contracted with local businesses for key elements of the program including the upcoming civil construction works."

Initial work should begin August 17 with water bore drilling, well pad site preparation and upgrading of the access to the well pad. All civil works will be performed by Top End businesses.

Source: Energy News Bulletin

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Hydraulic fracturing Community Bulletin #33

Sonia Harvey — Tue, 11 Aug 2020 05:24:03 GMT

The Strategic Regional and Environmental Baseline Assessment (SREBA)

The final Framework for Strategic Regional and Environmental Baseline Assessment (SREBA) has now been released and is publicly available

The SREBA Framework describes the objectives and contents of a SREBA, including governance and implementation arrangements.

The Framework presents the technical guidance notes for each of the six domains identified in the Hydraulic Fracturing Inquiry (HFI) report.

These domains are

Water quality and quantity studies
Aquatic ecosystems studies
Terrestrial ecoystems studies
Greenhouse gas emissions studies
Environmental health studies
Social, cultural and economic studies, including a Strategic Regional Assessment

Feedback on the draft SREBA Framework was received from 30 organisations or individuals, with comments incorporated into the final Framework. This is described in the consultation report available on the website.

The Northern Territory Government has determined that a SREBA is required for the Beetaloo sub-Basin, before production approvals for onshore gas activities can be considered. Scopes of work for each domain of this SREBA are currently being drafted, coordinated by DENR and with input from independent subject matter experts.

These scopes will be submitted to the Minister for Environment and Natural Resources for approval as they are finalised.

Armour Energy overhauls management team to fast-track expansion

Sonia Harvey — Thu, 30 Jul 2020 03:03:44 GMT

AUSTRALIAN onshore oil and gas producer and explorer Armour Energy has made several appointments to its management team as it embarks on a new era of expansion.

In May, the ASX-listed company brought Brad Lingo in as its chief executive, following an acquisition of fellow Australian explorer Oilex's Cooper Basin assets.

The acquisition saw Armour acquire Oilex subsidiary CoEra which holds a 79.33% direct interest in two permits, PEL 112 and PEL 444, with an option to take the remaining 20.66% from a trio of North American companies.

It also acquired the rights to 27 retention leases covering 2445 square kilometres in the Northern Fairway from Senex Energy.

CEO Brad Lingo's plan is to progress Armour's exploration assets in Queensland and the Northern Territory, while also increasing reserves and resources at its operational Kincora gas project in Queensland.

To help him accomplish this, a new executive leadership team has been appointed to lead the company.

Former Santos executive, Michael Laurent, who managed the gas giant's Cooper Basin appraisal and field optimisation activities joins Armour as chief operating officer.

Laurent's key focus will be on an upcoming work program involving fraccing of newly acquired and old wells in Armour's portfolio.

Erin Clark a well-known consultant in the Queensland and chair of the Advisory Board Centre has been brought on as interim chief financial officer.

The third appointment announced today is that of Neil McDonald, who has been with Armour for several years in the role of corporate affairs. McDonald will now take on a new position as general manager of commercial operations.

McDonald's remit will be to engage domestic and international investors and develop business strategies for development of Armour's acreage. This includes creating new commercial agreements with other oil and gas companies and developing relationships with stakeholders, while ensuring the company remains within its regulatory compliance requirements.

The three appointments come just days after Armour announced it would work with Santos to accelerate exploration and development of six permits in the Northern Territory and Queensland.

Source: Energy News Bulletin

Gear change for hydrogen, CCS: Macquarie

Sonia Harvey — Tue, 28 Jul 2020 02:57:03 GMT

MACQUARIE’s global head of green investment Mark Dooley has highlighted the special role oil and gas majors will play in driving development and investment in emerging technologies such as hydrogen and CCS, while the renewables market will continue to surge to new heights in the coming decade.

Speaking at the Clean Energy Council's summit this afternoon, Dooley noted the sheer amount of capital required for the energy transition to be successful, with the world needing to install 1.6 times its existing generation capacity by 2050.

This amounts to US$300 billion of investment per year, every year, for 30 years.

While the numbers are mind boggling, he noted Australia's investment capacity will meet the challenge, pointing to the country's superannuation fund capital expected to reach A$10.5 trillion by 2040.

He also highlighted the significant rise in investment globally - US$20.6 billion of new capital invested in sustainability themed funds in 2019 and US$109 billion of capital raised by infrastructure funds, compared to US$67 billion in 2015.

"While there's been a phenomenal amount of investment, this is just the beginning," Dooley said.

He noted governmental subsidy interventions in maturing renewable technologies was rapidly falling away and that attention needed to shift to emerging technologies such as hydrogen and CCS.

"The big players in oil and gas have a special role to play, as they have legacy expertise in relevant technologies and the industrial capabilities," he said.

Dooley highlighted the oil and gas industry has the ability to exploit undersea caverns for CCS and noted hydrogen would be relevant to gas company's legacy assets.

"We are seeing CCS and hydrogen changing gears, both were talked about a lot last decade but not much happened, that's changing now."

Source: Energy News Bulletin

Santos and Armour put pedal to the floor at Northern Australian permits

Sonia Harvey — Mon, 27 Jul 2020 03:01:49 GMT

AUSTRALIAN oil and gas giant Santos will accelerate its efforts to explore and develop six permits in the Northern Territory and Queensland, amending a farm-in agreement with its smaller joint venture partner Armour Energy, now helmed by Brad Lingo.

On Monday, Armour Energy told its shareholders that Santos, which is farming into the permits for a 70% stake, would pay the company a one-off cash payment of A$6 million, and carry the junior for nearly $65 million of exploration costs.

The farm-in was originally signed in December last year, but the update to the contract today aims to speed up exploration and development.

All six of the permits are located in the South Nicholson Basin, four of which are located in northern Queensland, and two in the eastern region of the Northern Territory.

Combined, the permits hold a gross 10.7 million acres. Armour's independent experts have assessed 22.1 trillion cubic feet of best prospect gas resources in the middle of the Proterozoic aged Lawn Hill and Riversleigh Shale formations within one permit alone.

Only one permit, ATP1087, has been granted. The other five permits are still considered application areas and are yet to be awarded to the joint venture.

Originally Santos made a $15 million payment to Armour for its 70% interest in the ATP1087 permit and was to pay a further $15 million for a 70% stake in all five other permits, once they were approved.

Instead Santos has the $6 million one-off payment on top of the $15 million.

While Armour will be the titleholder of the permits, Santos will take operatorship and responsibility for work programs and native title negotiations.

Armour is expected to pay around $750,000 per annum in exploration and development costs per year, once the venture begins work.

Armour chief executive Brad Lingo said he was pleased with the progress of the farm-in agreement which "significantly de-risk and advanced" the progress of work programs.

Source: Energy News Bulletin

Ichthys contractor loses $2.5 billion Court Appeal

Sonia Harvey — Mon, 27 Jul 2020 03:00:41 GMT

ONE of the major contractors which worked on the massive Ichthys LNG project in Northern Australia, has lost its appeal in the Supreme Court worth around A$2.5 billion.

Legal fights have consumed contractors, subcontractors and Ichthys operator Inpex, for years. The case before the court this month was just the latest in ongoing cases between the main contractor and its subcontractors.

JKC had hoped to overturn an earlier decision over subcontractor obligations relating to a combined cycle power plant which provided electricity to the Ichthys LNG processing facility.

It hoped to claw back $2.5 billion in costs and damages, however, has now officially had its case dismissed, after the Court found each of its grounds for appeal failed.

Japan's Inpex engaged JKC Australia LNG in 2012 to engineer, procure and construct and commission the Ichthys onshore LNG production facility. The project was worth in the region of US$47 billion.

JKC in turn subcontracted CH2M, UGL Infrastructure, General Electric for work on a combined cycle power plant to provide electricity to the processing facility.

The contract was terminated in 2017, after the subcontractors pulled its workers offsite after a stoush broke out over significant time delays and cost overruns reaching billions of dollars.

JKC then engaged replacement subcontractors to complete the power plant. It then took its former subcontractors to court over the termination claiming costs of replacing subcontractors.

At the same time, the former consortium of subcontractors claimed costs for the work they had already completed.

The contractual disputes between UGL, CH2M, GE, and JKC have taken around three and a half years to come to close.

At the heart of this particular case, was the interpretation of a commercial contract, and parent company liabilities.

The subcontractors, through a consortium or joint venture agreement, were obliged to conduct their work which was guaranteed by what are known as parent company guarantees.

JKC argued that the Parent Company Guarantees should be treated as 'pay now, argue later' instruments, similar to bank guarantees.

The subcontractors argued that any obligation under the Parent Company Guarantees depended on establishing actual liability under the subcontract.

The Court of Appeal dismissed all three of JKC's reasons for appeal.

Source: Energy News Bulletin

Central 2P reserves rise 16%

Sonia Harvey — Fri, 24 Jul 2020 03:06:10 GMT

CENTRAL Petroleum has announced a 16% upgrade to its 2P reserves across its three producing fields in the Northern Territory to a total of 162.2 petajoule-equivalent, with plans to develop new low cost supply via a series of lateral wells.

Netherland Sewell & Associates have independently verified the upgrade.

Central said today the rise was driven by the performance of its Palm Valley-13 well, online since May last year.

It confirmed today a 2C contingent gas resource of 105PJ which it believes could be unlocked by a proposed Stairway appraisal program at its Mereenie field and further infill wells at Palm Valley. It shares Mereenie with fertiliser maker Incitec Pivot.

The company is planning to implement a new strategy to appraise its production from the Stairway Sandstone at its Mereenie field. Subject to joint venture approval it will use lateral drilling from existing wells at locations that had prior observed gas shows while drilling through the stairway.

It says the appraisal work will target a new material gas resource which could "significantly" increase the gas produced from the Mereenie field with minimal investment in existing production facilities

At Palm Valley its PV-13 horizontal well in the Pacoota Sandstone "continues to show excellent performance, with more than 2.6PJ recovered over 13 months". The well recently only came off a 7 terajoule day plateau limited only by wellhead facilities.

The company is now seeking to capitalise on the PV13 success via drilling future laterals from existing wells to access poorly connected parts of the reservoir.

Source: Energy News Bulletin

Timor Resources plans Q4 spud for historic onshore campaign

Sonia Harvey — Tue, 21 Jul 2020 03:07:55 GMT

TIMOR Resources said today it hoped its long delayed south coast drill campaign will begin in the fourth quarter once it receives its Environmental Approval to drill.

These will be the first onshore wells drilled in five decades in Timor-Leste.

Mining and petroleum body the ANPM will issue the approval under the new onshore oil and gas regulations in the coming weeks. Dili finally enacted its long awaited onshore petroleum laws in late May.

The law had been pending promulgation since February last year in the small, politically tumultuous nation and is crucial not just for Timor Resources but for the on- and-offshore bidding round currently underway.

The 12-month round was due to end in October but has been extended another year given market conditions.

It is only Timor-Leste's second block auction and offers 11 offshore and seven onshore blocks, with several onshore blocks in the undrilled frontier areas of the north.

"Drilling plans have unfortunately been delayed due to COVID 19 and the obstacles created by the pandemic, travel restrictions and supply chain disruption," it said today.

Energy News reported in May drill plans had been pushed back and then, the company hoped for a June spud.

Timor Resources spent last year busy with a 500sq.km 2D seismic campaign in the lead up to this year's drilling campaign, which originally planned for five wells this year and, pending success, five in early 2021. The project is operated under a production sharing contract with the government.

Based on the 340sq.km of seismic a best-estimate resource of 342 million barrels of prospective resources was calculated by an independent third party, which Timor suggests could indicate potential for a discovery of over 20 million barrels of oil equivalent.

Source: Energy News Bulletin

Beetaloo gas the Territory's economic savior?

Sonia Harvey — Mon, 20 Jul 2020 03:04:41 GMT

THE COMMISSION set up by the Northern Territory government to find a path through the COVID-19 cras

The Michael Gunner-led Labor government established its Territory Economic Reconstruction Commission in May, and two and half months on, the commission has provided its first report - a path forward to growing the top end's economy in the medium term.

While the commission, which is chaired by former Dow Chemical chief Andrew Liveris, considered a variety of industries, from manufacturing to tourism, it's clear from the report that the commission is betting heavily on oil and gas exploration and development.

Gas from the Beetaloo featured as a keystone to economic recovery and security, in the face of what is quickly becoming one of Australia's worst financial situations to date.

Today the commission warned "no state or territory will be left unscathed" by the global recession wrought by the coronavirus pandemic.

It also found the "highly prospective world scale onshore gas resources and proven offshore gas reserves" along with the Territory's proximity to markets in Southeast Asia, were at the heart of the region's economic recovery.

It urged chief minister Gunner to accelerate its efforts to secure investment in the Beetaloo Sub-basin, which is thought to hold well over 178,000 petajoules of gas according to estimates from industry on a 2C basis.

"The Beetaloo Sub-basin shows significant potential to provide gas and liquids for energy use and to underpin a petrochemical manufacturing industry in the Territory - driving significant economic benefit," the commission said in its report.

"The Commission recommends that the Territory Government, in conjunction with the Australian Government, accelerates the preliminary design and development assessments for critical enabling infrastructure to support development of the Beetaloo Sub-basin in the event commercial feasibility is proven," the report said.

The commission believes this gas could sure up exports to overseas customers, but also play a vital role in reinventing the territory as a manufacturing hub.

Excess gas could then be piped to the east coast market which is expected to suffer from severe shortfalls within the next three to five years.

Initially, according to the commission, offshore sources of gas would be used to create a petrochemical production industry, "then gas and liquids from the Beetaloo."

This first report noted while LNG exports had surged over the last 12 months, the Territory economy had shrunk 1.5% in 2018-2019, from its peak of $26.5 billion in 2017-2018.

"Further contraction is expected in coming months" because of the COVID-19 pandemic which has shaken international financial markets.

The commission also provided advice and a series of recommendations focusing on agribusiness, tourism, and critical mineral mining opportunities.

It also referenced the NT Renewable Hydrogen Roadmap.

"The renewables sector is a fast-growing sector with considerable potential for further significant growth in the Territory. To achieve that potential requires investment in enabling infrastructure," the commission said.

In recognising the role of a hydrogen future, the commission said the NT government needed to "urgently undertake" studies into hydrogen development from solar power sources.

h, is betting on the potential of its vast onshore liquids-rich gas resources as the saviour to the region’s struggling economy.

Source: Energy News Bulletin

The Territory’s First Ever Renewable Hydrogen Strategy to Deliver Local Jobs

Sonia Harvey — Fri, 10 Jul 2020 03:04:00 GMT

Office Hon. Dale Wakefield

The Territory Government has released the NT’s first ever Renewable Hydrogen Strategy to turn our natural competitive advantages into clean, permanent local jobs.

As the international community seeks innovative ways to reduce greenhouse gas emissions, there is a growing demand for clean, reliable and flexible energy solutions like hydrogen.

Hydrogen has many advantages as an energy store and carrier. It can be manufactured with zero emissions, is energy dense and can be stored and efficiently transported, and it can be converted to heat through combustion or to electricity in a fuel cell, without creating any greenhouse gas emissions.

The Territory is well placed to position itself at the forefront of the developing renewable hydrogen industry with large areas of land with high solar irradiance, close proximity to export markets, an established world-scale energy production and export industry and a commitment to net-zero emissions by 2050.

There is the potential for hydrogen production, export and adoption to generate significant jobs and investment in the Territory, much of which could be in regional areas and provide opportunities for Aboriginal landowners and custodians.

The strategy outlines a five point hydrogen plan for government and industry to work together:

Local industry development – preparing industry capabilities, logistics and supply chains to facilitate the adoption of renewable hydrogen
Resource management – investigate how to optimise the Territory’s resources and infrastructure to facilitate hydrogen industry development
Grow and harness demand – promote the Territory as an attractive export hub and investigate domestic hydrogen applications to build demand
Support innovation – incorporate new ways of researching, trialling and adapting emerging technologies to optimise hydrogen opportunities
Responsive regulation – establish effective regulatory frameworks for the development of a safe and efficient hydrogen industry

The Territory’s strategy complements the Australian National Hydrogen Strategy to develop a clean, innovative, safe and competitive hydrogen industry that benefits all Australians.

The strategy can be found at https://business.nt.gov.au/hydrogen-strategy

Quotes from Minister for Renewables, Energy and Essential Services, Dale Wakefield

“This Labor Government understands the enormous potential our renewable energy resources have to create permanent local jobs for Territorians.

“We can be a leader in the world transition to renewable hydrogen and this strategy provides the vision and the plan to make it happen.

“The strategy complements our record of delivering more renewables, taking real action on climate change, and the strongest protections for water and our environment the Territory has ever seen.

“Only Labor has the plans and record to ensure we create local jobs and secure our unique environment for generations to come.”

Media Contact: Paige Nguyen 0428 727 244
paige.nguyen@nt.gov.au

Hydraulic fracturing Community Bulletin #32

Sonia Harvey — Thu, 09 Jul 2020 03:05:21 GMT

Independent Oversight of Hydraulic Fracturing Implementation

A key part of the Government’s response to the Inquiry and the Implementation Plan is building trust through transparency. The principles of engagement, transparency and accountability are guiding our approach to implementing the recommendations.

Current mechanisms for independent oversight include:

Independent Overseer

A key mechanism of oversight is the Independent Overseer, Dr David Ritchie.

The role of the Independent Overseer is to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed.

Dr David Ritchie’s role as Independent Overseer was due to expire on 30 June 2020, an extension has been granted until 31 December 2021.

The Onshore Shale Gas Community and Business Reference Group

The Onshore Shale Gas Community and Business Reference Group (CBRG) provides direct feedback and advice to the Hydraulic Fracturing Inquiry Implementation, coordinated by the Department of the Chief Minister.

The CBRG is essential to ensure stakeholders have oversight and input into the development of the implementation framework and its subsequent execution.

The CBRG’s term was due to conclude in June 2020.

The CBRG’s term has been extended until 31 December 2020 and continue their oversight of Stage 3 implementation.

Other targeted oversight

The Aboriginal Information Program Working Group has been established to guide the implementation of Recommendations 11.5 and 11.6 and includes representatives from Land Councils, Aboriginal Areas Protection Authority (AAPA) and the Australian Petroleum Production and Exploration Association (APPEA).

The Aboriginal Information Program is being designed with CSIRO to ensure Aboriginal people and communities have access to consistent, factual, relevant and easy to understand and culturally appropriate information relating to the onshore petroleum industry.

A Regional Reference Group will established for the Strategic Regional and Environmental Baseline Assessment (SREBA) in the Beetaloo Sub-Basin.

The Reference Group will comprise stakeholders who live, or have interests within the SREBA region to ensure there is appropriate local and regional engagement in baseline studies and SREBA outcomes.

The Reference Group will provide advice on the development and implementation of the SREBA studies within the region, engagement with local stakeholders, and communication of results and outcomes to the community.

Ventia closes Broadspectrum acquisition

Sonia Harvey — Tue, 07 Jul 2020 04:35:05 GMT

VENTIA HOLDINGS will rebrand subsidiary Broadspectum after it acquired the company from Ferrovial for A$485 million, a deal that closed last week.

Ventia's acquisition of Broadspectrum - a major contractor in the oil and gas and renewables sector - was approved by the Australian Competition and Consumer Commission in April. The deal was first announced in December last year.

Broadspectrum will soon be known as Ventia, joining its parent company, which is itself a 50-50 joint venture between construction giant CIMIC and Apollo Global Management.

The company holds service contracts for BP's Kwinana refinery, Shell's QCLNG venture and with Inpex for the Ichthys LNG project in the Northern Territory.

Broadspectrum also owns Easternwell, a major drilling contractor in Australia.

The combined group was expected to generate revenue in excess of A$5 billion when it was first announced, however the COVID-19 pandemic and oil price crash may affect this.

CIMIC, the 50% owner of Ventia, also owns service business UGL - another major oil and gas contractor - which it acquired through a hostile takeover about four years ago.

The acquisition of Broadspectrum gives CIMIC, through Ventia, an even bigger slice of the services business.

Source: Energy News Bulletin

Santos approved for Barossa production license

Sonia Harvey — Mon, 06 Jul 2020 04:29:47 GMT

THE National Offshore Petroleum Titles Administrator has approved Santos’ application for a production license offshore Northern Territory for its Barossa field, despite project sanction now left open ended.

Santos has held the title since 2012 as a retention license renewing the initial five-year term in October 2017 and was approved to transition to a production license Friday after its application March 27.

The 841sq.km field is in the Bonaparte Basin and contains 10 blocks.

Barossa was due for final investment decision in the June quarter and would be destined as backfill for the Darwin LNG plant as the current Bayu Undan field goes into decline.

"Barossa remains an important project for Santos due to its brownfield nature and its low cost of supply," managing director Kevin Gallagher said March 23 when he announced the company had delayed sanction thanks to market conditions.

It said then it would cut spending by almost 40% this year, making it then the second major ASX-listed oiler to revise guidance.

Santos will lower its capital expenditure this year by $550 million and will cut $50 million from cash production costs.

Though DLNG was always due to be shut in before development of Barossa that delay is now expected to be longer, hitting Australia's forecast future LNG exports.

In October it announced it was taking a larger share of the assets it already shared with ConocoPhillips for a total of $1.4 billion, but would sell down 25% interest in Bayu-Undan and DLNG to SK E&S for $390 million, giving the latter a larger stake.

The sale completed in late May for a revised down price of US$1.25 billion.

However the deal also saw an increased contingent payment of $200 million on sanction of Barossa, up from an original $75 million.

The National Offshore Petroleum Safety and Environment Management Authority greenlit the Barossa pipeline development in early March.

Source: Energy News Bulletin

Industry counters anti-frac claims in lead up to Top End election

Sonia Harvey — Thu, 02 Jul 2020 01:27:52 GMT

AUSTRALIA’s leading petroleum industry body has hit back at Territory Alliance leader Terry Mills’ promise to ban fraccing in the jurisdiction if his fledgling party wins a balance of power in the upcoming election in late August.

Mills is a former Chief Minister and was pro-fraccing when in power but has since swung in a 180 to attack the practice, suggesting it is not supported by a majority of Territorians and that the government has already over $94 million subsidising the gas industry with no return.

He has said "Access Economics have identified nearly $100 million of NT taxpayer money already spent on this with no return".

Mills published a public letter in late June which said "there is no social license for fraccing".

"No more production permits will be issued, existing exploration licences will not be renewed and current operations will be subject to tough community and environmental safeguards," Mills wrote.

The Australian Petroleum Production and Exploration Association sent its own four-page letter to Mills Tuesday outlining the benefits of the gas industry, its centrality to Top End power supply and contesting many of the allegations he has made.

"Even if the government did spend $94 million subsididing the industry, some of it would have happened on his watch," APPEA Northern Territory director Keld Knudsen told Energy News today.

"Back of the envelope calculations we've done actually suggest industry has spent $500 million already onshore," he said.

APPEA maintains the report the former chief minister refers to is not from Access Economics but rather one commissioned by anti fraccing group Lock the Gate and prepared by think tank The Australia Institute.

The letter says that the Access Economics report it has read said "a report by that consultancy in relation to NT gas found that contrary to your assertions, a successful onshore gas development could provide a boost to the NT economy of over $17 billion over 20 years, and an additional 4,000 jobs under their "success" scenario".

That is far from "no return" were wells in the frontier Beetaloo Sub-basin successful.

"It's $94 million over ten years on anything related to gas. There was some research around diesel-to-gas. It's clearly not a subsidy," Knudsen said today.

Currently Santos and Origin Energy are the largest players in the Beetaloo, however Empire Energy also holds a vast swathe of leaseage across the region.

Until now, the Michael Gunner Labor government has been very supportive of the oil and gas industry, moving to slash red and green tape in an effort to boost exploration and keep the domestic economy afloat.

In May the Territory government announced a new Economic Reconstruction Commission, headed up by leading business figures, to slash red tape, create jobs and attract investment from the oil and gas sector.

Source: Energy News Bulletin

Read more here

Empire about to take the plunge in Beetaloo

Sonia Harvey — Wed, 01 Jul 2020 02:40:17 GMT

AUSTRALIAN oil and gas explorer Empire Energy has selected the location for its first well in the frontier Beetaloo sub-basin, in the Northern Territory.

ASX-listed Empire Energy has selected a drilling contractor, picked its well site for Capentaria-1, ordered necessary equipment, and finalised the well design.

The announcement today saw the company's shareprice jump more than 4% to 25.5 cents per share.

It plans to spud the well in exploration permit EP187 in the third quarter, despite challenges posed by COVID-19 restrictions and a volatile market.

Carpentaria-1 will be drilled to a depth of 2900 metres and target the Velkerri Shale and Kyalla Shale formations. While the Velkerri has already proven to hold dry gas elsewhere, the Kyalla which is the secondary target could hold liquids.

The well aims to identify and prove up the thickness of the shales.

Currently Empire believes its well will hit up to 600m of Velkerri shale and a 100m interval of the Kyalla shale.

Once drilled, it will be fracced and tested. Data from the well will be used to design an appraisal program slated for next year, with a view for short-term production.

It is expected the drilling, completion and evaluation of the well will take around 45 days.

Over the last two or so years, Empire have pivoted away from US onshore exploration, to focus solely on Australian domestic opportunities.

The company believes the Beetaloo basin will play a "key role in opening up Australian supply of domestic energy."

"We are really excited to replicate the US shale boom here in Australia," managing director Alex Underwood told Energy News.

Recently, independent oil and gas research firm Netherland, Sewell & Associates estimated Empire's entire portfolio, which spans 14 million acres, now holds a combined 13.46 trillion cubic feet of gas on a 2U best estimate basis.

Within EP187 Netherland, Sewell & Associates, estimate a 2U prospective resource of 2.4 Tcf

Source: Energy News Bulletin

Read more here

Hydraulic fracturing Community Bulletin #31

Sonia Harvey — Thu, 25 Jun 2020 02:44:02 GMT

Community and Business Reference Group meet for the seventh time

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its seventh meeting in Darwin on 2 June 2020.

Established to provide a forum for government to seek advice and share information, the Reference Group received updates on:

progress of the Framework for Strategic Regional Environmental Baseline Assessments (SREBA); including the outcomes of public consultation on the draft Framework which were completed in early 2020, and plans to form a regional reference group for the development of the SREBA in the Beetaloo Sub-Basin
draft Offsets policy related to the Environment Protection Act 2019, which was released for public comment at the end of 2019
status of Environmental Management Plans (EMPs) currently under assessment by the Department of Environment and Natural Resources (DENR)
development of the Gas Service and Supply Plan, including actions to grow the service and supply industry, and grow Territory research and innovation and training. The Plan is available online .
work underway for the Aboriginal Information Program to address recommendations 11.5 and 11.6

The Reference Group also discussed the ongoing mechanisms for oversight of Stage 3 of the Implementation Plan and noting the term of the CBRG was set to conclude on 30 June 2020, requested Government consider extending their term for a further 6 months till 31 December 2020.

The Reference Group noted that as at 30 April 2020, and as per the 6-monthly update, 60 of the 135 recommendations have been fully completed, 71 have commenced, and four are yet to commence.

For full details of the meeting and to read Communique 7 PDF (165.2 KB) .

Transforming Titjikala’s Energy Future through a New Battery Energy Storage System

Sonia Harvey — Thu, 18 Jun 2020 02:46:22 GMT

Office Hon. Dale Wakefiled

The Territory Labor Government’s target of 50% renewables by 2030 is delivering local jobs and cheap, clean power.

Following the installation of Titjikala’s new 400kW photovoltaic solar array, the community will now have its energy future transformed through a new 970kWh battery energy storage system (BESS).

Titjikala is the second remote community in the Territory where energy generation costs will be significantly reduced because of the Territory Labor Government’s investment in solar and battery technology.

The BESS will save approximately 156,000 litres of diesel annually. Not only will the diesel engines be turned off during daylight hours, but excess solar energy generated will be stored for overnight use. The engines will start up again overnight when the BESS is depleted.

The BESS will also have significant environmental benefits for the Titjikala community. There will be cleaner air through cleaner power, less traffic on the roads from heavy vehicle diesel delivery trucks, and reduced noise from diesel engines.

The Titjikala BESS project will cost an estimated $950,000. The investment is expected to be repaid from savings within five years and the project is expected to be completed by early 2021.

Titjikala’s solar array installation was part of the Solar Energy Transformation Program (SETuP), which is Australia’s largest rollout of solar power to remote communities.

SETuP was a $59 million program co-funded by the Territory Government and the Australian Renewable Energy Agency (ARENA). The program was rolled out to 25 sites across the Territory.

Quotes from Minister for Renewables, Energy & Essential Services, Dale Wakefield

“The Territory Labor Government is delivering more renewables because we know it means cheaper, cleaner power and more jobs.

“We are not just investing in our major centres, but we are also investing in our remote communities and ensuring that we are delivering cheaper and cleaner power for ALL Territorians.

“We have made significant progress towards our target of 50% by 2030 with renewables projected to reach 16% by the end of 2020 – up from 2% in 2016.

“These reforms and the significant progress we’ve made would be put at risk by a CLP or Terry Mills Government.

“With the CLP continuing to claim renewables are a hoax, and Terry Mills promising less renewables, only Labor has the record and policies to secure a renewable future for the Territory.”

Media Contact: Paige Nguyen 0428 727 244
paige.nguyen@nt.gov.au

What's in store for natural gas as hydrogen enters the pipeline?

Sonia Harvey — Tue, 16 Jun 2020 01:47:58 GMT

Natural gas will have an important role to play in a low emissions future and will be a key partner in Australia’s renewable energy supply chain. Already considered a ‘clean’ fuel, natural gas produces the least amount of carbon dioxide of all fossil fuels. However, what many people don’t realise is that natural gas will also have a prominent role in the development of Australia’s new hydrogen industry.

Learn more.

Australia’s upstream oil and gas industry needs long-term regulatory stability to create attractive investment opportunities for the sector and maintain industry’s strong economic contribution.

Sonia Harvey — Tue, 16 Jun 2020 01:46:12 GMT

APPEA recently released a report undertaken by energy research and consultancy Wood Mackenzie. The report highlighted that the industry’s success from 2009 to 2012 was predicated on relatively few regulatory and fiscal changes in the previous decade, which provided a strong foundation for a wave of unprecedented investment.

The scale of this investment, including the establishment of LNG projects in the Territory was worth approximately $350 billion Australia wide and has delivered direct and indirect economic benefits to the Australian economy.

In the immediate term, the benefit has come from direct spending into local communities while the full taxation benefits to be accrued in the latter half of this decade.

Wood Mackenzie Vice President Energy Consulting, Asia Pacific Chris Graham said: “Our analysis found the stability of the regulatory and fiscal environment in the years prior to investment was key to oil and gas majors with strong balance sheets and development capability making long-term commitments to the country.

“However, against the backdrop of a challenging macroeconomic environment and lower commodity prices, Australian fiscal and regulatory volatility has increased at a time when continued stability would be highly beneficial.”

While focused on the oil and gas industry, the findings also show regulatory instability, intervention and uncertainty, coupled with Australia being considered to be a high-cost destination for business, has reduced the investment appetite, is also relevant for many other industries in the Territory.

The Territory has an opportunity to secure a new wave investment in gas and stable regulatory and fiscal environment is crucial for recovery. While the report was completed prior to understanding the full impacts of COVID-19, and the decline of the oil price, it remains relevant as Australia shifts focus to economic recovery and global reintegration.

A lack of investment will have economic flow-on effects to communities and businesses we work with, making it counter-productive to the economic recovery phase that this country will need to embark on.

A copy of the report can be found here.

https://www.appea.com.au/wp-content/uploads/2020/05/Australia-Oil-and-Gas-Industry-Outlook-Report.pdf

Hydraulic fracturing Community Bulletin #30

Sonia Harvey — Thu, 11 Jun 2020 01:44:43 GMT

Updates on implementation of recommendations from the Final Report of the Scientific Inquiry into Hydraulic Fracturing are made available on the Hydraulic Fracturing website.

This progress update provides detail on the status of implementation from 1 November 2019 to 30 April 2020. As at 30 April 2020, 60 of the 135 recommendations have been fully completed, 71 commenced and four are yet to commence. Updates to the implementation status of individual recommendations can be found by clicking on the relevant recommendations here

30 April 2020 implementation progress highlights include:

1. The Strategic Regional and Environmental Baseline Assessment (SREBA)
From 9 December 2019 to 28 February 2020, the draft SREBA Framework was released for public consultation. The draft SREBA Framework PDF (3.1 MB) and Guidance Notes explain the expected roles and responsibilities of parties involved, and the interconnection and design of the six study areas when undertaken anywhere in the NT, in the domains of:

Water quality and quantity
Aquatic ecosystems
Terrestrial ecosystems
Greenhouse gas emissions
Environmental health
Social, Cultural and Economic, inclusive of a Strategic Regional Assessment.

The SREBA public consultation period received 16 written submissions, and verbal feedback during 12 in-person stakeholder briefings. The full SREBA framework is currently being finalised based on feedback received and is expected to be released in July 2020.

Scopes of work for each SREBA domain are currently being drafted and require approval from the Minister for Environment and Natural Resources prior to finalisation. These will be submitted to the Minister individually as each scope of works has varying technical expert input and stakeholder engagement required to finalise.

The opportunity to submit an application to tender for the Social, Cultural and Economic SREBA scope of work is available on the NT Government current opportunities page.

2. Regulation and Assessment
The NT Government has progressed a number of recommendations relating to regulation and assessment, including:

Commenced drafting land access provisions within the draft Petroleum Regulations 2020, expected completion July 2020.
Passed the Petroleum Legislation Miscellaneous Amendments Bill 2019, to commence in June 2020 alongside the Environment Protection Act 2019. The amendment to the Act completed five recommendations in full and has enabled the progression of another four recommendations.
Written a submission to the Commonwealth Government’s review of the Environment Protection and Biodiversity Conservation Act (EPBC Act), which reiterates the NT Government’s commitment to implementing Recommendation 7.3, to amend the EPBC Act to apply the ‘water trigger’ to onshore shale gas development.

3. Aboriginal Information Program
The Aboriginal Information Program (addressing recommendations 11.5 and 11.6) is being designed to ensure:

Aboriginal people and communities have access to consistent, factual, relevant and easy to understand and culturally appropriate information relating to the onshore petroleum industry.

CSIRO is developing an information package that can be used when engaging with communities who will potentially be affected by the gas industry. Stage one of this work will be delivered mid-2020, with testing, translation into Aboriginal languages and engagement to commence in the second half of 2020.

Independent Oversight of the sixth Hydraulic Fracturing Implementation Progress update
The role of the Independent Overseer is to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed. The nature of this role requires the Independent Officer to remain at arms-length from day-to-day decisions and processes relating to implementation.

The Independent Overseer of the implementation of the recommendations, Dr David Ritchie, has provided comment on the progress of implementation outlined in the sixth quarterly update.

Overall, Dr Ritchie found that implementation continues satisfactorily in accordance with the findings of the Inquiry.

In his letter, Dr Ritchie noted the effects of the COVID-19 pandemic, and that travel restrictions may delay progress on some recommendations which require face-to-face engagement.

Read Dr Ritchie’s full advice here PDF (218.7 KB)

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

Community and Business Reference Group
The Community and Business Reference Group met for the seventh time on 2 June 2020. The agenda included:

Review of the 6 month Progress update
Targeted engagement for Stage three of implementation

What’s next?
The NT Government is progressing from stage two to stage three of the Implementation Plan for most Hydraulic Fracturing Inquiry recommendations. Stage three recommendations are mostly larger projects that are anticipated to be delivered over the next 18 months to three years. Progress updates will be announced through six-monthly community bulletins as Stage 3 of the Implementation Plan continues.

Want to find out more?
To find out about opportunities to engage in consultation or to keep up to date with status of implementation of each recommendations, sign up for regular updates on the website: www.hydraulicfracturing.nt.gov.au by email: hydraulic.fracturing@nt.gov.au

Oil Search director joins Central Petroleum

Sonia Harvey — Tue, 09 Jun 2020 02:24:15 GMT

AUSTRALIAN onshore oil and gas explorer Central Petroleum has appointed a new, well-known, face to its board as it looks to future growth in the Northern Territory.

In a notice to shareholders today, ASX-listed junior Central Petroleum announced Dr Agu Kantsler had joined the board as a director.

Kantsler is a familiar face in the Asia-Pacific oil and gas industry, and is currently a non-executive director of Oil Search.

Prior to joining Oil Search, Kantsler led Woodside Petroleum as executive vice president for exploration and new ventures.

Central Petroleum said Kantsler's appointment was made after an "extensive search" for the right fit.

"Kantsler's appointment is timely as he joins Central during an important step-change in the evolution of our company," Central chairperson Wrix Gasteen said.

Gasteen said Central was emerging from market challenges posed by the COVID-19 pandemic and oil price crash, and that Kantsler would bring technical credibility and an "extensive depth of experience to the board" at an "exciting juncture" in the company's growth strategy.

Central aims to become on of Australia's major suppliers of gas to the east coast market.

This year the company is looking to the Northern Territory's Amadeus Basin for exploration, while also completing its recently drilled Dukas exploration well.

"[Dukas] is targeting one of the largest conventional on-shore gas prospects in Australia," Gasteen noted.

Source: Energy News Bulletin

Read more here

NOC Timor Gap to take 20% PSC in all permits from licensing round

Sonia Harvey — Mon, 08 Jun 2020 02:30:46 GMT

AFTER enacting the onshore petroleum laws at the end of May the government of Timor-Leste has now approved its national oil company Timor Gap to take a 20% participating interest in any production sharing contracts awarded from its upcoming licensing round.

The round began October last year and runs a year. It was launched at the nation's inaugural oil and gas conference held in Dili. Eleven offshore blocks and seven onshore are available.

Timor Gap has also recently farmed into the former Joint Petroleum Development Authority permit PSC 11-106 and has also entered two onshore PSCs with Nepean Engineering subsidiary Timor Resources.

It has a PSC with Singapore-based Sunda Gas, awarded in November and another with Inpex dated September.

It holds a 56.56% stake in the Greater Sunrise gas project with operator Woodside Petroleum.

Source: Energy News Bulletin

Read more here

Oil pricing amid global challenges - A CBS Executive Education Masterclass

Sonia Harvey — Sat, 06 Jun 2020 03:38:25 GMT

The price of oil has risen and fallen spectacularly in past decades, yet there is much debate about where prices will move in the future. Ongoing trade disputes, attacks on oil installations, efforts to stabilise climate change and the devastating effects of COVID-19 are all contributing market disorder and volatility.

In this Masterclass webinar series, you’ll learn about major drivers of the oil market and use economic principles to explain its extraordinary price performance. You’ll gain a clear picture of oil supply and demand determinants, and will analyse pricing prospects in the near future and beyond. In the final session, you’ll also consider natural gas prices and the evolution of gas in regional markets.

Registrations are now open

Please contact us if you have any further questions about the program:
Telephone: +61 8 9266 4555
E-mail: execed@curtin.edu.au

Intyalheme Centre for Future Energy awarded $3.2m microgrid grant

Sonia Harvey — Fri, 05 Jun 2020 02:34:45 GMT

The Intyalheme Centre for Future Energy will lead a project to increase renewable energy uptake through the development of microgrid technology.

Intyalheme, a flagship project of Desert Knowledge Australia (DKA), has been awarded $3.2m in grant funding from the Australian Government under the Regional and Remote Communities Reliability Fund – Microgrids.

The project will address barriers that are limiting additional renewable energy from being added to the Alice Springs power system.

Using technical, economic and behavioural modelling, the project seeks to determine which short-term interventions will be needed to shore up existing grid stability as a first priority.

Beyond that, the regulatory and technical developments needed to support a higher proportion of renewable energy will be identified. The modelling will outline how the Alice Springs grid could operate without any thermal (conventional) power generation, even for a short period.

Other factors will be explored, such as working out the implications of disconnecting and reconnecting a microgrid into the main power system, and establishing who carries the liabilities for supply during periods of disconnection.

“This funding forms part of a broader plan to revolutionise the Alice Springs power system over the next two years,” said General Manager of the Intyalheme Centre for Future Energy, Glenn Marshall.

“The transition to a renewable energy future is upon us, and because Alice Springs is an isolated grid, we will be among the first to face the sort of grid stability challenges that are associated with a high proportion of renewable energy,” he said.

“Technology like microgrids, household batteries, and cloud forecasting will be crucial in the future energy system, so today’s announcement is terrific news as it ensures a firm path towards a clean and secure energy future for Alice Springs.”

Lessons learnt through the Alice Springs study will be applicable to other grids in the Northern Territory, and beyond.

The project will culminate in the development of a Roadmap to 2030 report, identifying the necessary steps to reach the NT renewable energy target of 50 per cent by 2030, in Alice Springs.

More information available here

Green hydrogen projects crowd for ARENA funding

Sonia Harvey — Fri, 05 Jun 2020 02:27:43 GMT

MORE than A$3 billion of renewable projects are vying for funding from the Australian Renewable Energy Agency’s A$70 million green hydrogen fund.

The fund was announced in April to help fast track the development of renewable hydrogen, and closed several weeks ago with ARENA receiving 36 expressions of interest in the round.

The funding round is expected to play a significant role in supporting commercial-scale deployments of renewable hydrogen in Australia help meet energy minister Angus Taylor's goal of hydrogen production for under A$2 a kilo or ‘H2 under $2'.

"The strong interest in the Morrison government's Renewable Hydrogen Deployment Funding Round shows Australian industry is ready to co-invest with government and build a sustainable hydrogen sector," Taylor said today.

Labor's climate spokesman Mark Butler said the massive oversubscription was evidence the government underestimates the potential of Australia's green hydrogen sector.

"The scheme was oversubscribed and underfunded," he said.

"The Morrison government never had any intention to properly invest in hydrogen development."

ARENA aims to use the funding round to support two or more large scale renewable hydrogen projects with electrolysers of a minimum 5 megawatt capacity with a preference for 10MW or larger.

The expressions of interest include over $1 billion in total grant requests, over $3 billion in total combined project value and almost 500MW of electrolysis capacity.

ARENA said projects selected in the funding round can also be considered for further financing from the government-backed Clean Energy Finance Corporation under its own $300 million Advancing Hydrogen Fund.

ARENA said it will now assess the expression of interest and invited shortlisted projects to submit a full application with the goal to award funding by the end of the calendar year.

Source: Energy News Bulletin

Read more here

Upstream Production Solutions is expanding their business in the NT

Sonia Harvey — Wed, 03 Jun 2020 02:36:44 GMT

Upstream Production Solutions (Upstream PS) is delighted to announce it has expanded its business in the Northern Territory (NT) by setting up a ‘Darwin Hub’ facility to showcase its Operations, Maintenance, Projects, and Advisory capability.

The new ‘Darwin Hub’ facility includes offices, a logistics supply base and a safety critical device maintenance and repair workshop and reestablishes Upstream PS in the Territory after the company was founded there 20 years ago.

“This strategic move for Upstream PS brings us closer to our clients in the region and we look forward to working closely with the NT government, other businesses and the community to help the Territory grow.” said Cameron Wills, Chief Executive Officer.

Upstream PS provides operations and maintenance services in Australia and the NT region for clients such as Eni, Shell, Santos, C02CRC, APA, Origin, Origin APLNG, Arrow Energy, MEPAU and the Australian Government.

About Upstream PS

Upstream PS is a wholly owned subsidiary of GR Engineering Services Limited (ASX:GNG) with an extensive track record in the provision of operations, maintenance, projects and advisory services. The Upstream PS team has served the oil and gas industry for more than 20 years, with a strong reputation for providing safe, innovative, and sustainable solutions to production challenges.

For further information, please contact:

Upstream Production Solutions

josh.harrison@upstreamps.com

Jadestone defies the odds and posts a quarterly profit

Sonia Harvey — Fri, 29 May 2020 02:42:48 GMT

AUSTRALASIAN oil and gas producer Jadestone Energy has posted a profit, despite the oil price crash and economic woes felt by other regional explorers and producers.

Jadestone, which operates the Montara and Stag oilfields offshore Western Australia, reported a pre-tax profit of US$13.1 million for the first quarter ending March 31.

This is an increase from $10.67 million in the corresponding period in 2019, or roughly a 20% increase.

However, profits were down compared to the final quarter of 2019, when the company posted net profits of US$27 million.

Jadestone told shareholders yesterday afternoon that while net revenue for the first quarter had fallen 20% on the previous quarter, to US$74.2 million, its hedging program had ensured output remained "well above the Brent benchmark".

Of its US$13.1 million in profits, $8.2 million was made from hedged oil.

Oil prices, both Brent Crude and West Texas Intermediate, were sidelined over the quarter when Russia and Saudi Arabia flooded the market in a dangerous game of chicken when neither country agreed to output cuts to secure the global oil price.

Production from the Montara project totaled an average of 8799 bopd, lower than the first quarter of 2020 due to cyclonic activity and a maintenance shut down.

Jadestone reported one single lifting from Montara over the three months to March 31 of 512,575bbls.

Meanwhile Stag field production was up from 1,941bopd in the March quarter of 2019 to 2866 bbls last quarter.

Two liftings were reported from the Stag field, totalling 5118,193 bbls, compared to a single lifting of 170,000 in the first quarter of 2019.

Earlier in the year, Jadestone announced it would shelve its Nam Du and U Minh gas project in Vietnam citing a deteriorating international gas market and government approval delays.

The company also advised it would push back an infill drilling campaign in Australia until 2021.

Jadestone recently completed a seismic survey across its Montara oil field. It then planned to drill several wells across the Montara and nearby Skua oil and gas fields to increase production.

The first well, H6, was to be drilled in the AC/L7 production permit on the Montara Field and was expected to spud this quarter.

A second development well, Skua-12, was to be drilled in the adjacent AC/L8 license on the Skua Field.

Jadestone also planned to conduct workovers of the H3 and Skua-10 wells across the two respective Australian permits.

Source: Energy News Bulletin

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Melbana granted work program extension for Beehive

Sonia Harvey — Fri, 29 May 2020 02:21:59 GMT

MELBANA’S 100%-owned Beehive permit offshore Western Australia has seen its terms extended by a year by the offshore titles regulator.

Under the terms of the National Offshore Petroleum Titles Administrator (NOPTA) Melbana was required to drill a well at its Beehive prospect this year, but after Santos chose not to take up its option for an 80% farm-in has had to delay those plans.

NOPTA has allowed a 12-month suspension of the work program for year 3 in WA-488-P which now ends December 21 next year. The permit term ends December 21, 2023.

The permit holds the Beehive prospect which could hold up to 388 million barrels of oil equivalent on a best estimate basis

Total completed a 3D seismic survey over the area but last year chose not to take up the option to farm in for a 40% share of the permit. Santos took over its option but had always said it would only take up the project if it could first find a farminee. When it hadn't by the deadline of early this year, the full interest moved back to Melbana.

Santos has an 80% share of other permits nearby such as the Dorado oil project it shares with Carnarvon Petroleum (20%) and has said it will farm down the project when it is at a later stage of development.

Melbana says permitting and preparation to drill an exploration well that will target the large carbonate structure is underway. The well was due to be drilled before the end of the year.

Source: Energy News Bulletin

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Santos completes ConocoPhillips asset buy

Sonia Harvey — Thu, 28 May 2020 04:37:32 GMT

SANTOS has completed the acquisition of ConocoPhillips’ entire Northern Australia portfolio, for a cheaper price than first announced thanks to lower oil prices, with the price revised down from US$1.4 billion to $1.25 billion.

However the deal also sees an increased contingent payment of $200 million on sanction of Barossa, up from an original $75 million.

In March Santos announced it was delaying final investment decision on the backfill project given uncertain market conditions.

Santos would take the US company's Northern Australia portfolio, leaving ConocoPhillips with only its non-operated interest in the Australia Pacific LNG venture in Queensland, which when the October deal was struck it saw as too cash-generative to give up. .

"At completion, the net settlement amount was US$655 million, lower than the previously forecast amount of US$800 million, comprising the revised firm purchase price of US$1.265 billion less cash in the acquired business from the effective date of 1 January 2019 to completion with customary adjustments," Santos said in a statement.

"The net settlement amount is before any sell-downs of interests owned by Santos in the acquired assets."

As of today Santos holds a 68.4% interest in the declining Bayu-Undan gas field and the Darwin LNG it feeds.

The company also now effectively owns a 62.5% stake in the Barossa project, due to go to DLNG, and Caldita field, a 40% stake in the Poseidon field, and a 50% stake in the Athena field.

It signed a letter of intent to sell down a further 12.5% interest in the Barossa project to Japan's JERA, and has a firm agreement to sell down a 25% stake in Darwin LNG and Bayu-Undan to SK E&S.

"We are delighted to assume operatorship and continue to progress the Barossa project so that a final investment decision can be made when market conditions permit," Santos chief Kevin Gallagher said.

"We welcome the ConocoPhillips' Australia-West employees to Santos and look forward to getting on with the process of integrating our two businesses to create one high performing team."

Source: Energy News Bulletin

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Inpex suspends Maersk contract for phase-2 Ichthys

Sonia Harvey — Thu, 28 May 2020 02:19:13 GMT

ICHTHYS operator Inpex has suspended a contract with drilling contractor Maersk for its next phase development program in WA-50-L offshore northern Australia.

In Maersk's latest trading statement released overnight, the contractor advised shareholders it had received a suspension notice from Inpex and agreed to a suspension rate for its Maersk Deliverer Mobile Jackup rig.

"Maersk Drilling has agreed with Inpex Australia to suspend the contract for Maersk Deliverer with effect from 30 April 2020," the company said.

The vessel is currently at the Ichthys standby location, according to MarineTraffic.

According to Maersk, the rig will now be re-contracted to drill Inpex's significant development campaign in the final quarter of this year.

The campaign includes 15 new development wells, drilled in water depths of between 235 metres and 275m.

According to plans submitted to and approved by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) the Ichthys Phase-2 development was expected to take five years to complete.

Japan's Inpex was given the all-clear to begin its next stage subsea work program in late April.

It contracted McDermott International and Baker Hughes to provide joint umbilicals, risers and flowlines, and subsea production systems for the campaign.

Phase 2 development of the Ichthys field will increase condensate production for export to Japan and other international markets, while gas will be piped to the Ichthys LNG plant in Darwin for processing.

Source: Energy News Bulletin

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Finkel stands up for gas in Q&A

Sonia Harvey — Mon, 25 May 2020 23:42:04 GMT

Australia's chief scientist said gas would remain a crucial part of Australia's energy mix for the next 10-30 years, but noted it would be used "less and less" frequently as renewables and battery storage take the lion's share of the energy mix.

"We can bring vastly more renewable electricity if we support it, and in the short term the best way to do that is with gas," he said.

Former Lord Mayor of Sydney Lucy Turnbull questioned the legitimacy of the government's rhetoric around a gas-fired economy, noting the Paris Agreement's goal of net zero emissions by 2050 which the government has signed on to.

"We have to reconceive our world in the post-COVID world as a post-carbon world and we do that by actually looking forward and that's the opportunity we have now," she said.

"We should aim to have the emission profile and aspirations of Denmark, with the energy costs of Saudi Arabia."

Source: Energy News Bulletin

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Timor-Leste enacts onshore petroleum laws

Sonia Harvey — Mon, 25 May 2020 23:38:55 GMT

THE government of Timor-Leste has finally enacted its long awaited onshore petroleum laws.

Currently Nepean subsidiary Timor Resources is progressing its drilling campaign in the south of the country searching for oil in a ten-well campaign after a busy 2D seismic acquisition campaign last year.

The law has been pending promulgation since February last year in the small, politically tumultuous nation.

The law is not just crucial for operations already underway by Timor Resources but also for the current bidding round that ends in October.

The offer, which has 11 offshore and seven onshore blocks up for grabs, is the first since 2005, and was launched at its inaugural oil and gas conference in capital Dili last October, and is set to close this October. Since then the nation's top oil and gas officials have been on the conference circuit trying to drum up interest.

For the first time several onshore blocks are being offered in the frontier areas in the north of the country, though data is sparse.

According to Miranda Partners, a Portuguese law firm active in the country, "The new rules cover all petroleum operations carried out onshore Timor-Leste, under the Petroleum Activities Law, from exploration, appraisal, development and production to abandonment, including the transport, processing and storage of crude oil and natural gas in an upstream context."

The law, Decree-Law No. 18/2020, will also apply to onshore facilities that service offshore operations.

There are specific rules on operations, safety and local content.

Other provisions also include land access, relationships with local communities, and the installation and later abandonment of pipelines

The laws will come into force 90 days after being published in the nation's official gazette.

Timor Resources is hunting for oil on the south coast, home to several historic wells and some oil seeps and plans an eventual 10-well campaign , with five wells this year in one permit it operates under a production sharing contract arrangement with the Dili government and five more in its other permit in early 2021.

Source: Energy News Bulletin

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Empire Energy appoints LNG old hand as project attracts attention

Sonia Harvey — Mon, 25 May 2020 23:37:32 GMT

AUSTRALIAN onshore explorer Empire Energy has appointed an old hand in the oilfield sector to its board, as interest grows in the small cap which owns a massive 13 million acres in the Northern Territory across the Beetaloo and McArthur Basins.

Yesterday afternoon, Empire announced it had appointed Peter Cleary to its board citing his commercial relationships and industry experience as an asset for the company.

Cleary is a familiar face in the oil and gas sector, having worked in senior leadership roles at Santos, the North West Shelf joint venture, and at BP in Asia.

During his tenure at BP he was president of the North West Shelf Australia LNG, the marketing company for the Woodside Petroleum-led North West Shelf Joint Venture.

He developed senior venture relationships with LNG buyers and governments in international markets, particularly China.

Cleary's work at Santos was also LNG-focussed, possibly suggesting some pretty large ambitions by the junior.

The board of directors told shareholders yesterday, Cleary's industry experience, relationships and track record would be "of particular value" to the company as it looks to progress its Northern Territory acreage from exploration stages to appraisal and ultimately commercialisation.

The appointment comes as multiple analysts find Empire Energy an attractive investment following the release of new prospective resource estimates.

Source: Energy News Bulletin

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Analysts back Empire Energy on Beetaloo prospectivity

Sonia Harvey — Sun, 24 May 2020 23:46:27 GMT

MULTIPLE analysts have rallied behind Empire Energy after independent estimates almost doubled the amount of gas across the company’s permits in the Northern Territory.

Last week, independent oil and gas research firm Netherland, Sewell & Associates estimated Empire's entire portfolio, spanning 14 million acres, holds a combined 13.46 trillion cubic feet of gas on a 2U best estimate basis.

Independent investment research houses; RaaS Group; Blue Ocean Equities; and Taylor Collision, all noted the "growing prospectivity" of the Beetaloo Basin and Empire Energy's prime real estate in the region

The massive increase in estimated gas in place was described by Empire managing director Alex Underwood last week as an "exciting and substantial resource for a company of its size."

The frontier NT shale play has attracted international attention, which the Territory government hopes will turn into investment in the vast gas and liquids-rich Beetaloo and McArthur Basins.

The jump in resources has seen at least three different consulting firms to up their ratings of Empire Energy, citing the massive resources as "exciting" with multiple commercialisation options.

RaaS noted the new estimate of 13.5 Tcf of gas "crystalised Empire Energy's longer-term potential" if the company's drilling program was successful.

"Given the region's high prospectivity, success from future drill programs could see cashflows within 36 to 48 months, assuming links and upgrades to existing pipeline infrastructure are delivered in parallel," RaaS analysts said.

Raas have increased its base case valuation of the company by 20%, to $159 million, or 61 cents per share.

"Empire has a number of event drivers over the next six to 12 months which in our view hold potential to confirm and expand this sizable uplift in net asset value."

Raas Group's view is echoed by fellow research houses Blue Ocean and Taylor Collision.

While Blue Ocean Equities analyst Garry Marsden believes Empire is still a speculative buy, he noted Empire is the only Australian listed small cap with exposure to the massive gas province of the Beetaloo, and its assets could be commercialised in both Darwin for international export markets as LNG and the east coast markets for domestic use.

Blue Ocean lifted its base value of Empire by 55% from 49 cents per share to 76 cents based on the upgraded potential of the Beetaloo acreage. This would give the company a market cap of $203 million.

Taylor Collision also released its own view following Netherland, Sewell & Associates report.

"Although it is early stage activity, the confidence level associated with the gas potential remains relatively high and Empire Energy is sitting on an extensive gas resource," analyst Andrew Williams noted.

"Based on increased gas potential, confidence levels, and adjustments to risk weightings, we value the company in a range of $81 million to $389 million."

This would equate to around 31 cents to $1.47 per share.

Source: Energy News Bulletin

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Massive Sun Cable Project moves forward

Sonia Harvey — Sun, 24 May 2020 23:32:38 GMT

WORK has been progressing in recent weeks to advance Sun Cable’s Australian-ASEAN Power Link super project in the Northern Territory, designed to export huge amounts of renewable electricity from Australia to Singapore and Indonesia via subsea cable.

The project has backing from tech billionaire Mike Cannon-Brookes and from Andrew Forrest's energy company Squadron, which is also part of consortium called Australian Industrial Energy which is progressing an LNG import terminal in New South Wales.

The project involves generating three gigawatts of electricity from a 15,000 hectare solar array near Tennant Creek, supported by battery storage, which will then be transported via a 3800km high voltage direct cable to provide one-fifth of Singapore's electricity supply.

Last week Perth-based Guardian Geomatics was awarded a cable route survey contract by Sun Cable Pty, with plans to use offshore vessel "Offshore Solution" to deliver work starting later this year.

"Guardian Geomatics are always on the lookout for opportunities to improve our footprint and sustainability - this project is a step in the right direction and something we are very proud of," Guardian Geomatics commercial director Steve Duffield said.

"Sun Cable is thrilled to have engaged Guardian Geomatics to undertake this critical survey work," Sun Cable CEO David Griffin said.

Meanwhile, Sun Cable is progressing early contract work for its Middle Arm battery project, ultimately designed to firm up supply from the Power Link.

Project design is scheduled to start in the third quarter of this year, with the battery expected to be commissioned and online by the second quarter of 2022.

The proposed site will be east of the existing Weddell Power Station, with an installed capacity of 50MW scalable to 500MW.

The project is designed to initially provide active power and ancillary services to the Darwin-Katherine Integrated System.

Source: Energy News Bulletin

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Santos and Neptune push ahead with Bonaparte exploration

Sonia Harvey — Thu, 21 May 2020 23:50:30 GMT

OPERATOR Neptune Energy yesterday announced it is pressing on with its planned exploration of the Petrel oil and gas field in the Bonaparte Basin offshore northern Australia.

Neptune holds a 54% interest in the project alongside Australia's second largest gas producer Santos (40.25%) and Beach Energy (5.75%).

Late yesterday Neptune told shareholders it had successfully completed the first step in its exploration campaign, namely a 3D seismic survey across two permits north of Western Australia and the Northern Territory.

The Petrel field is the largest of three gas fields being considered for development by Santos, Beach and Neptune. The other smaller fields include the Tern and Frigate fields which are both wholly owned by Santos.

The three fields were to be developed by Santos and GDF Suez using a floating LNG facility but those plans were shelved in mid-2014 after oil prices plummeted. However when Neptune came to the party, hopes for the development returned.

"The seismic survey was the first significant investment in this part of the Bonaparte basin in more than five years and it continues to present exciting future growth opportunities for Neptune offshore Australia," managing director Janet Hann said.

Seismic acquirer Polarcus was contracted to carry out the survey in 2019. The survey was undertaken across NT/P84 and WA-454-P in water depths between approximately 73m to 107m.

Neptune has received some of the initial findings from the seismic, but data processing is expected to be completed later this year.O

Source: Energy News Bulletin

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Jemena launches new Indigenous Mentoring Program

Sonia Harvey — Thu, 21 May 2020 03:18:26 GMT

Leading energy infrastructure company Jemena has joined forces with Saltbush Social Enterprises, part of the Karen Sheldon Group, to deliver a new Indigenous Workforce Mentoring Program: Pipeline to Success.

Jemena’s Managing Director, Frank Tudor said: “This program has been specifically developed for disadvantaged Indigenous job seekers in the Northern Territory’s Barkly region. It aims to equip participants with mentoring and leadership skills so they can support other members of the community into part-time and full-time employment.”

“Through our Northern Gas Pipeline project, we saw many local people participate in learning and development opportunities which ultimately enabled them to contribute to the successful construction of the $800 million gas pipeline. The Pipeline to Success initiative builds on this model and our hope is that through this program we will contribute to the broader economy of the Barkly region, while also identifying and mentoring a talent pool which is potentially capable of working on the Northern Gas Pipeline in the future.”

Mr Tudor congratulated the program’s inaugural mentor, Becky Limerick of the Wakaya people.

“We are delighted Becky has completed six months of training in which she learned about attendance, communication, team work and computer skills. We’re thrilled to hear Becky is already mentoring others and promoting the benefits of this course to her community.

“Becky’s positive experience has paved the way for the program to expand and two more members of the local Indigenous community are now participating.” Mr Tudor said.

Mr Tudor said Saltbush Social Enterprises was selected to deliver the program after Karen Sheldon Training, part of the Saltbush group, co-delivered Jemena’s Gas Operator Training Program as part of the delivery of the Northern Gas Pipeline.

“Jemena has a long history of connecting with the local community and is building a legacy of support. This latest initiative will enable local Indigenous people to develop employment skills and career opportunities through mentoring. The program will provide an environment in which local people can receive training and receive skills-based learning while respecting their culture,” said Karen.

Image 1: (left to right) student mentor Becky Limerick with Claire Keen

Image 2: (left to right) Jemena MD Frank Tudor, Karen Sheldon Group MD Karen Sheldon and Jemena Corporate Development Manager NT, Brendan Bourke.

About Jemena

Jemena is an $11.5 billion company that owns and manages some of Australia's most significant gas and electricity assets. These include:

· the Jemena Gas Network servicing 1.4 million customers around NSW

· the Eastern Gas Pipeline which delivers gas from Victoria's Gippsland basin to the ACT, Sydney and regional NSW

· the Darling Downs Pipeline Network in south-east Queensland supplying Darling Downs Power Station and APLNG’s export pipeline

· the Queensland Gas Pipeline which supplies Gladstone and Rockhampton

· Jemena's Victorian electricity network which delivers electricity to over 350,000 homes and businesses in northern and western Melbourne

· the Northern Gas Pipeline between Tennant Creek in Northern Territory to Mount Isa in Queensland.

Jemena also part-owns the ActewAGL electricity and gas distribution networks in the ACT and United Energy, which supplies electricity to more than 600,000 customers across south-eastern Melbourne and the Mornington Peninsula.

For more about Jemena, visit www.jemena.com.au

About Saltbush Social Enterprises

Saltbush is a not-for-profit organisation developed in response to the urgent need for opportunities that create prosperity parity for First Australians in the Northern Territory. Saltbush provides and supports genuine opportunities for self-determination and prosperity parity for all Aboriginal Territorians through their employment services, intensive mentoring, counselling and Supported Bail Accommodation.

For more about Saltbush Social Enterprises, visit www.saltbushnt.org.au

About the Karen Sheldon Group

All Karen Sheldon Group enterprises focus on the shared vision of prosperity parity for all Territorians. The focus is on providing Indigenous employment and training opportunities that assist jobseekers transition from welfare dependence towards sustainable employment, careers and small business opportunities.

Gas to underpin Australian steel comeback

Sonia Harvey — Tue, 19 May 2020 23:48:00 GMT

THERE is no silver bullet to Australia’s current domestic economic woes, but federal minister Karen Andrews today reiterated the federal government’s intentions to remove environmental red tape and put the pedal to the floor for future oil and gas development.

In a speech to the National Press Club today the minister for Industry, Science and Technology Andrews acknowledged the severe hit business had taken to investment due to the coronavirus pandemic.

While the minister's carefully curated oration focussed on building the manufacturing sector, gas and energy were a key component to her remarks.

Andrews said energy and technology was a "national priority" and would underpin Australia's manufacturing sector and domestic economic recovery.

She said she was working "closely" with resources minister Keith Pitt and energy minister Angus Taylor to ensure affordable gas prices for the manufacturing industry and flagged a comeback of affordable steel production and exports as an underlying area of domestic economic recovery.

"I am at the consumer end. For Australian manufactures I want to make sure they get the best energy prices they can."

Specifically, Andrews flagged a revival of Australia's steel manufacturing sector, despite a global oversupply of steel.

This would rely on affordable electricity and gas prices, and the government is not yet considering hydrogen, according to Andrews.

Hydrogen-led ‘green steel' is one idea put forward by centrist think tank the Grattan Institute to drive Australian green jobs and manufacturing while replacing those lost from retirement of coal mines.

"We need to ensure our steel manufacturers are getting the best energy costs. Energy is a critical input to them. I encourage them to look at how they are going to minimise their energy costs, but hydrogen [is still in early stages]" Andrews said.

The minister said she understood business was investing heavily in the future energy source, but Australia was a "resource rich nation" and the government was already looking at "how and if" hydrogen could become an export further down the track.

"Hydrogen is something we are investigating… but it is something a number of years away and it won't be in place for several years to come."

Instead, Andrews is betting on natural gas being the primary feedstock for manufacturers.

The minister used her speech to spruik the government's plans to further reduce the price of gas in wholesale markets, saying "cheaper gas" and "reduced cumbersome red tape" would benefit business and improve access to export markets by making products like steel cheaper.

Source: Energy News Bulletin

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NT Gas Service and Supply Plan: Onshore Gas Support Industry Statement of Capacity

Sonia Harvey — Mon, 18 May 2020 02:58:30 GMT

Background

The NT Onshore Gas Support Industry – Statement of Capacity is now available in hardcopy
This report supports the NT Gas Service and Supply Plan which was released in March (link here: https://business.nt.gov.au/publications/strategies/gas-service-and-supply-plan)
The Service and Supply Plan aims to maximise opportunities for NT service and supply businesses in the oil and gas sector, and will help businesses adapt to the dual impacts of the oil price shock and COVID-19.
The Plan has three key focus areas:

1)    Strengthen the commitment to local content by gas operators and contractors
2)    Grow local workforce and business capability
3)    Strategically develop the service and supply ecosystem

This Statement of Capacity is a significant step towards delivering opportunities for the NT service and supply sector.

Key Messages

The NT Onshore Gas Industry Statement of Capacity:
- Is a forward-looking assessment of the potential demands of an onshore shale gas industry in the NT,
- identifies the capacity of the NT service and supply sector to meet the needs of a future NT shale gas industry, and
- identifies gaps in capacity and opportunities for NT businesses to work proactively to prepare for a future onshore shale gas industry.
A corresponding offshore industry statement of capacity will be released shortly, which has measured actual operational spend on the LNG projects serviced out of Darwin Harbour and the potential for NT companies to compete for a greater slice of the service and supply pie.
The Northern Territory Government remains committed to achieving its visions for a world-class gas production, manufacturing and services hub by 2030.

For more information, contact:

Sean Reddan

Principal Industry Development Officer, DTBI

sean.reddan@nt.gov.au

m: +61 436 613 179

EMPIRE ENERGY: Australian junior firms up potential of Oz shale acreage

Sonia Harvey — Mon, 18 May 2020 02:32:22 GMT

Empire Energy also in talks to secure drilling rig for delayed exploration well as it prepares to resume operations in Australia's Northern Territory.

Australian junior Empire Energy has received a boost for its Northern Territory exploration prospects, with Netherland, Sewell & Associates, Inc (NSAI) carrying out an independent assessment of its Beetaloo sub-basin and McArthur basin acreage.

The assessment by NSAI places the best estimate prospective gas resources across Empire’s acreage at nearly 13.5 trillion cubic feet and placed the overall best estimate prospective resource volume at nearly 2.3 billion barrels of oil equivalent.

“This is a substantial resource for a company of our size. The results of Empire’s recent 2D seismic program have enabled NSAI to evaluate prospects in EP187 which have a best estimate prospective gas resource of over 2.3 Tcf in the Velkerri Shale and 14 million barrels of oil equivalent in the liquids rich Kyalla shale,” Empire managing director Alex Underwood said.

“This represents a near doubling of Empire’s Velkerri shale independent prospective resource estimate and is the first time that the Kyalla shale has been independently assessed as a prospective resource in our properties. The plays evaluated by NSAI in our McArthur basin properties have substantial resource potential.”

Empire added on Monday that it was working with the Northern Territory and the Northern Land Council to resume its work programme activities in the Northern Territory, which had been hampered by the Covid-19 pandemic.

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Morrison overhauls Australian oil and gas legislation

Sonia Harvey — Thu, 14 May 2020 23:28:07 GMT

THE FEDERAL government has passed key legislation covering many areas of the upstream oil and gas industry, ranging from regulatory powers and levies, to the future of carbon capture and storage developments.

All amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 proposed by the government were finally accepted this week, after many months of debate.

Separate amendments by Centre Alliance senator Rex Patrick failed, as did an amendment by Greens senator and anti-oil and gas campaigner Sarah Hanson-Young.

The former wanted to see an amendment to stop multiple extensions to exploration permits for companies holding acreage in Commonwealth waters in the Great Australian Bight while the latter wished to see a moratorium imposed on any future drilling or exploration.

The government's legislation came in a series of Bills, one focused on the role of the national regulator and oil and gas boundaries, and another paving the way forward for CCS and hydrogen exports, finally formally moving the role of overseeing offshore CO2 storage to the offshore oil and gas safety and environmental regulator NOPSEMA from the Department of Industry and Innovation.

REGULATORY CHANGES TO NOPSEMA

The Senate voted in favour of overhauling offshore oil and gas regulations to give the national environment and safety watchdog a new, sharper, set of teeth.

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has been given powers to enforce penalties and issue directions to operators in state waters, should an Oil Spill Emergency occur.

Source: Energy News Bulletin

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UPS given contract for Northern Endeavour at taxpayer expense

Sonia Harvey — Thu, 14 May 2020 23:23:12 GMT

PERTH-based GR Engineering told the market this morning its subsidiary Upstream Production Solutions had been awarded a longer-term contract from the federal government to watch over the Northern Endeavour FPSO offshore Western Australia.

The Northern Endeavour lies inert in the Commonwealth waters of the Timor Sea. The vessel is now in ‘lighthouse' mode and not producing from the Laminaria-Corallina oilfields after its owner Northern Oil and Gas Australia (NOGA) ran out of money and was declared bankrupt.

The federal government intervened when NOGA went into liquidation, with more than $100 million owing, appointing UPS as the operator of the ageing vessel. UPS previously held the contract when the offshore regulator shut the vessel down over safety concerns, forcing NOGA into administration.

Today UPS parent company GR Engineering announced it had been given a longer-term contract which will end on October 31 this year to effectively watch over the vessel.

"We are pleased to continue working with the Department and relevant regulatory bodies to safely operate and maintain the Northern Endeavour FPSO whilst it remains in a non-producing state under the Northern Endeavour Temporary Operations Program," GR Engineering managing director Geoff Jones said.

The contract is expected to be worth approximately A$32 million with money coming directly from the public purse.

NOGA's fiasco has been an embarrassment for the Australian oil and gas industry, and new federal resources minister Keith Pitt has not held back, labelling the situation a "wake-up call" to industry on his first day in Cabinet in February after he replaced Matt Canavan.

Canavan, despite seeing himself as friend to both industry and all hydrocarbons great and small, was adamant tax payers should not bear the cost but rather industry should chip in, something which horrified peak lobby body APPEA.

Source: Energy News Bulletin

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Northern Territory throws cash at oil and gas industry

Sonia Harvey — Wed, 13 May 2020 23:24:50 GMT

THE Northern Territory Labor government has thrown nearly $12 million at the oil and gas sector in the hope it can fast-track onshore exploration, and thus save the domestic economy.

Treasurer Nicole Manison today released the government's quarterly fiscal report, which showed a deficit of $540 million, and said she made "no apologies for doing whatever it takes to protect Territorians."

As part of the government's recovery plan post COVID-19, it had brought forward $11.79 million worth of funding for oil and gas explorers and producers to encourage investment.

The cash will be made available through the Strategic Regional Environmental Baseline Assessment program.

Treasurer Manison said the costs would be "recouped through cost-recovery arrangement with industry."

"The March quarterly financial figures showed the government budget remained on track for the 2019/20 financial year until the COVID-19 global crisis emerged," Manison said.

"In response to the COVID-19 pandemic Government took swift and decisive action to save lives and to save jobs.

Manison said the wad of money would provide "funding certainty" for the oil and gas industry.

She also noted the government remained committed to implementing the Hydraulic Fracturing Recommendations from the scientific inquiry into fraccing which led to the lifting of the fraccing ban in the NT.

According to the government's website it is only 41% complete in introducing promised fraccing regulations.

The Michael Gunner-led Territory government has delayed its own budget, following the federal government's decision to suspend its own. The next NT budget will be in November this year.

Source: Energy News Bulletin

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Eni may leave Aus

Sonia Harvey — Tue, 12 May 2020 23:26:49 GMT

ENI may sell its Australian assets, according to sources speaking with the Australian Financial Review, with possible buyers including Beach Energy.

Beach does not have any Darwin or offshore Northern Territory assets, or a position in an LNG export facility but does have experience in offshore gas and domestic gas plants and already partners with Santos, which has a large share of Darwin LNG, which the Italian company has a minority stake in.

Eni also has the undeveloped Evans Shoal field, which it took operatorship of in late 2017.

Beach's last large purchase was Origin Energy's upstream vehicle Lattice Energy in 2017, and it has spent the past two years pursuing largely organic growth options.

It farmed out a large stake of its offshore Otway position in Victoria in 2019 to OG Energy.

APA Group is apparently another targeted buyer, though nothing was mentioned during the pipeliner's online investor briefing day last week.

"Sources said Eni... and its bankers at Citi had pitched the portfolio as defensive in nature and said they were sheltered from global oil prices, which analysts expect to be low for months or years to come," the Fin said.

All the Italian company's Australian assets are gas, including the Blacktip gas field which goes to Darwin's Yelcher gas plant and its 11% stake in DLNG and the declining Bayu Undan field which feeds it.

Source: Energy News Bulletin

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World's biggest green energy hub approved for Western Australia

Sonia Harvey — Sun, 03 May 2020 23:21:19 GMT

Today the Western Australian environmental watchdog gave the all-clear to what will be the world’s biggest hybrid wind and solar hub.

In an Australian first, the Asian Renewable Energy Hub in the Pilbara region of WA will transfer energy via a lengthy subsea power cable to Singapore and produce green hydrogen at an "oil and gas scale" for export.

"Having assessed the proposal, the Environmental Protection Authority recommends the proposal may be implemented subject to conditions," the state EPA said this morning.

The project will cost more than A$22 billion and is being led by a consortium spearheaded by Danish wind turbine manufacturer Vestas, US-based Intercontinental Energy and Macquarie Bank.

The Asian Renewable Energy Hub will cover 6500 sq.km of land and is expected to generate more than 15 gigawatts of renewable energy in northern WA.

Around 3GW of energy generated is earmarked for industrial users in the Pilbara, including miners and mineral processers.

However, the bulk of the power generated will be used to produce green hydrogen for export markets, and directly exported through a subsea pipeline to Singapore.

Four export cables will run across the seabed and through the Eighty Mile Beach Marine Port, for direct energy export to southeast Asia.

It has taken six years to get to this stage, after project development studies began in 2014.

Last year the project was given priority ‘Major Project' status by the state government.

The A$22 billion hub will be constructed in phases over the next ten years and when complete will consist of 1,743 wind turbines with a generating capacity of 7.5 gigawatts and a 644,600 hectare 3.5GW solar plant generating more than 40 terawatt hours of electricity a year. It would also produce green hydrogen.

The project, some 220km east of Port Hedland, is being backed by CWP Energy Asia, InterContinental Energy, Vestas and Macquarie Group.

The developers are aiming for first exports of hydrogen by 2027.

Once fully operational the hub will have a life span of more than 50 years.

WA environment minister will have the final say on whether the project goes ahead.

Source: Energy News Bulletin

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ARENA launches massive A$70M green hydrogen fund

Sonia Harvey — Fri, 17 Apr 2020 00:51:47 GMT

THE Australian Renewable Energy Agency has launched A$70 million green hydrogen fund to help fast track the development of the gas to help Australia reach its goal of producing it for under $2 per kilo, or “H2 under 2” by 2030.

The funding round will support two or more large scale renewable hydrogen projects, with electrolysers of a minimum of 5 megawatt capacity, with a preference of 10MW or larger, which would make them some of the largest electrolysers in the world, according to ARENA.

Electrolysis is the process in which water is split into hydrogen and oxygen, a process which when done by using renewable energy is emission free, however the technology has yet to be scaled up.

Unlike other parts of the federal government's National Hydrogen Strategy, each project must be powered by renewables, either directly or through power purchase agreements or large-scale generation certificates.

Shortlisted projects will be invited to submit full applications later this year ARENA said.

"This $70 million funding round will help demonstrate the technical and commercial viability of hydrogen production at a large-scale using electrolysis," energy and emissions reduction minister Angus Taylor said in a statement this morning.

In a similar vein to his other slogan on negotiating energy funding arrangements with the states, or "no gas, no cash", Taylor has adopted the mantra of "H2 under 2".

"That's the point where hydrogen becomes competitive with alternatives in large-scale deployment across our energy systems," he said.

Taylor pointed out the ways hydrogen could be used to decarbonise hard-to-abate industries, including heavy transport, ammonia production, blending hydrogen into existing local natural gas networks, as well as the export value of shipping it to trading partners like Japan and Korea.

"Getting costs down will be key to establishing Australia as a world leader in the hydrogen sector," Taylor said.

ARENA has already committed over $55 million in funding to support pre-commercial activities including power to gas and renewable ammonia and has invested in feasibility studies for commercial-scale deployments of hydrogen including Dyno Nobel, Queensland Nitrates, Yara and Stanwell.

"We've supported a range of feasibility studies and pilot projects over the past two years, but now we need to start the journey of producing hydrogen at scale," ARENA CEO Darren Miller said.

"Through this round, ARENA aims to share knowledge on technical and commercial parameters for commercial-scale renewable hydrogen production for domestic and international markets."

Australia is joining the global race to scale up renewable hydrogen, with several demonstration projects underway.

Source: Energy News Bulletin

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New date set for 60th APPEA Conference and Exhibition

Sonia Harvey — Fri, 17 Apr 2020 00:49:30 GMT

Due to the COVID-19 pandemic, the APPEA Conference and Exhibition, originally planned for May 2020, has been postponed to June 14-17, 2021 at the Perth Convention & Exhibition Centre in Western Australia.

The APPEA Conference and Exhibition is the largest annual upstream oil and gas event in the southern hemisphere, attracting thousands of delegates from across the country and around the world.

The conference’s technical and business papers already submitted will be published in the 2020 APPEA Journal (to be released in May, further information will be advised in due course). Other elements of the Conference and Exhibition will however be postponed to the new date in 2021.

APPEA will contact all stakeholders including speakers, delegates, exhibitors and sponsors directly to advise of their options moving forward.

APPEA Chief Executive Andrew McConville said while the industry’s current focus was meeting the personnel, operational and community challenges posed by the COVID-19 pandemic, APPEA was committed to maintain its engagement with members, industry stakeholders and the broader community.

“Our industry’s first priority is the health and safety of our people, then ensuring vital energy supplies are maintained and we will continue to highlight the critical role we play in underpinning Australia’s economic and social well-being,” Mr McConville said.

“Next year, we are excited that we will be able to celebrate the APPEA Conference’s 60th anniversary in Perth.

“Such events are critical for the industry to stay informed, do business, find solutions to challenges and find pathways to opportunities.

“So, rest assured, we will be back – bigger and better than ever.”

APPEA’s national conferences and state-based events are a key part of APPEA’s support for the industry, and the association will continue to adapt to the circumstances to keep everyone informed and connected.

APPEA is also currently planning a webinar series for members and stakeholders.

For further information and updates, visit www.appeaconference.com.au

SANTOS SIGNS LOI TO SELL A 12.5% INTEREST IN BAROSSA TO JERA

Sonia Harvey — Thu, 16 Apr 2020 00:50:17 GMT

Santos today announced it had signed a Letter of Intent (LOI) to sell a 12.5% interest in Barossa to JERA.

JERA already has a 6.1% interest in Darwin LNG. Santos’ signing of the LOI with JERA advances partner alignment between the Darwin LNG and Barossa joint ventures for the development of Barossa as backfill for Darwin LNG.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said signing the LOI with JERA further builds partner alignment and follows the recent agreement to sell a 25% interest in Darwin LNG to SK E&S.

“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. Following completion of the ConocoPhillips acquisition and the sell-downs to JERA and SK E&S, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa. We are continuing to advance discussions with other parties for the sale of further equity in the Barossa project in line with our previously stated target ownership level of around 40% to achieve increased partner alignment and prudent future allocation of growth capital. We are also in discussions with buyers for Barossa volumes.”

“However as we announced on 23 March, given the uncertain economic impact of COVID-19 combined with lower oil prices, we expect to defer FID on Barossa until business conditions improve. Barossa remains an important project for Santos due to its brownfield nature and low cost of supply, and we will continue to use this time to achieve alignment and seek to further strengthen the economics of the project,” Mr Gallagher said.

The sale of the 12.5% interest in Barossa to JERA is subject to the negotiation and execution of a binding sale and purchase agreement, completion by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio as announced on 14 October 2019, third-party consents, regulatory approvals and a final investment decision on Barossa.

Source: Santos Media Centre

COVID-19 cut gigawatts from Oz renewable development

Sonia Harvey — Thu, 16 Apr 2020 00:45:05 GMT

THE ongoing COVID-19 pandemic is going to cut deeply into both global and Australian development of renewables this year, while yesterday the International Energy Agency said capital investments into renewables by oil companies will be affected by the low price environment.

The pandemic will postpone or cancel financial close of some 3 gigawatts of projects in Australia according to Rystad Energy which blames the falling Australian dollar, down 20% against the greenback since January.

This has pushed up capital expenditure up for both solar PV and wind projects, making otherwise viable projects suddenly uneconomic.

Hardware makes up 60% of capex and is usually priced in foreign currency. Suddenly developers are finding it more difficult to meet power purchase agreements profitably while cash is increasingly scarce and, in this environment, financiers won't lend cheaply.

So far this year only 400 megawatts has broken ground down from Rystad predictions of between 2-3GW of projects beginning this year.

"New South Wales will be the biggest loser, as 65% of solar PV and 67% of wind projects which are expected to, but have not yet reached financial close in 2020 are located in the state," it said.

Solar companies hardest hit will be UPC, Neoen, Wollar Solar and Canadian Solar while wind companies impacted will likely be Tilt and Goldwind.

Things were not ideal through 2019 as grid challenges finally came to the fore and "these issues slowed the number of projects and associated capacity to break ground at the end of 2019," Rystad said.

Globally Wood Mackenzie estimates solar and storage will contract by 20% compared to its base case for 2020 while in the shorter term the impact on onshore wind will be "muted in the near term" however cascading supply chain and construction risk present further downside risk.

Overall COVID-19 will result in a 4.9GW decline in wind additions compared to the consultancy's previous outlook.

"We highlight India as presenting additional downside risk. Further risks exist in Asia, as travel restrictions and mitigation efforts impact Japan, Australia, Vietnam and others," it said.

There is little impact to offshore win, thanks to China's recovery and a nascent industry in the US.

It has revised down its outlook for solar installations by 18% from pre-coronavirus levels from 129.5 GW to 106.4 GW.

"In the absence of prolonged recession or profound changes to financing and utility procurement, 2021 will recover to be 3% below pre-coronavirus expected levels," it said.

Storage installations could fall 20% compared to its 2020 base case, with the risk stemming largely from project execution delays.

Yesterday in its April Oil Outlook report the IEA said global capital expenditure by oil and gas companies in 2020 is forecast to drop by about 32% versus 2019 to $335 billion.

"This reduction of financial resources also undermines the ability of the oil industry to develop some of the technologies needed for clean energy transitions around the world," it said.

Source: Energy News Bulletin

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Decom expansion for NOPSEMA can't prevent another NOGA

Sonia Harvey — Wed, 08 Apr 2020 08:26:54 GMT

THE offshore oil and gas regulator has issued a draft recommendation on decommissioning of oil and gas rigs, which is open for public comment after former resources minister Matt Canavan issued a ‘statement of expectations’ in November that it step up oversight of decommissioning activities.

All this already comes under section 572 of the Offshore Greenhouse Gas Storage Act but the National Offshore Petroleum and Safety Authority has outlined how it plans to oversee and enforce the section in more detail.

It will not prevent another NOGA fiasco, however.

Canavan said he expected NOPSEMA would "ensure that titleholders are appropriately planning for, and executing decommissioning activities in a timely and responsible manner".

It was around this period when Northern Oil and Gas Australia went into administration and it was clear the small private company had little ability to decommission the aging floating storage production and offloading vessel, The Northern Endeavour, NOPSEMA had shut down in July over safety concerns.

NOGA has since been liquidated and Canavan replaced by Keith Pitt but the Northern Endeavour remains moored in the Timor Sea in lighthouse mode and no closer to a long term solution. Upstream Production Solutions, which had the original contract to run the vessel on a third-party basis, is taking care of maintenance.

The vessel is under official control of the federal government.

NOGA bought the vessel from Woodside Petroleum in 2016 and took over its operations along with the depleted Coralina-Laminaria oil fields, saving the latter significant decommissioning costs.

New minister for natural resources Keith Pitt called the debacle a "wake up call to the Australian oil and gas industry" but did not outline what steps he might take as minister to prevent a recurrence of a similar event.

Taxpayers could be liable for a $200 million-plus decom bill, despite Pitt's promises otherwise, but the new draft on section 572 does not take into account title transfer, or if an operator can meet the costs of its decommissioning plan under its wider Environmental Plan.

New titleholders must submit EPs and decommissioning plans at that point but they are generally spartan given the long life of offshore assets.

However each five year EP review must provide increased details.

However unlike the titles administrator - which oversaw the transfer from Woodside to NOGA - NOPSEMA does not take into account an operator's ability to meet financial demands outside of its ability to manage oil spills.

Given the issue is now with Australia's aging offshore infrastructure it is hard to see how the expanded rules could prevent the issue recurring.

NOPSEMA said titleholders must remove all property in their title once it is no longer used "and only accepts alternative arrangements where justification is appropriate".

Property applies to all equipment, including subsea and wells, brought into the area but the policy "does not cover financial liabilities that may be associated with property as addressed in the Australian Government Offshore Petroleum Decommissioning Guideline".

Should property not be removed or an environmental plan submitted on how it might meet removal obligations "NOPSEMA may escalate to enforcement action… whether in relation to failure to maintain property or failure to remove property".

Enforcement includes "directing a titleholder or former titleholder to comply with the OPGSS act" or it may prosecute and "have either civil or criminal penalties applied".

Source: Energy News Bulletin

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Woodside undertakes extensive study into hydrogen exports

Sonia Harvey — Wed, 08 Apr 2020 08:24:33 GMT

AUSTRALIA’s biggest gas producer, Woodside Petroleum, will join a consortium of Japanese companies to explore commercial hydrogen exports from Australia to Japan.

In one of the biggest studies of hydrogen exports to date, Woodside announced it had inked an agreement with JERA, Marubeni Corp and IHI Corp to explore rapidly exporting clean hydrogen to gas-hungry Japan.

The study will appraise options to transport hydrogen from Australia as ammonia, then convert it back into hydrogen for power generation in Japan.

According to a statement from Woodside, the scope of the research will also consider using ‘blue' hydrogen, produced using natural gas as the feedstock with carbon emissions will then be offset, as well as ‘green' hydrogen created from renewables.

In both cases the hydrogen will be combined with nitrogen to form ammonia. The ammonia will then be shipped as a liquid.

Woodside chief Peter Coleman said the company would "forge new energy pathways" through the research, and even went so far as to say he expected large-scale hydrogen production by 2030.

Source: Energy News Bulletin

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Top End throws kitchen sink at battery bonus

Sonia Harvey — Tue, 07 Apr 2020 08:22:43 GMT

THE Northern Territory government has approved the buy of a large scale battery for the Darwin-Katherine grid for A$30 million, with estimates suggesting it will pay for itself in five years.

The battery will help manage greater amounts of behind the meter solar used by households and businesses.

The top end government said it will decrease the need for gas-fired spinning reserve which will save $6.4 million a year and 50,000 tonnes of CO2 emissions.

It will also allow more renewable energy into the grid from private projects and the battery may be later used provide system services to the private sector.

The battery will be in operation in the second half of 2022.

The government also has two smaller new initiatives in place to encourage households and businesses to take up solar panels, batteries and inverters with a $6000 grant.

It has also developed a new standard feed-in tariff of 8.3 cents per KWh to be offered by Jacana Energy which will apply to all new businesses and households with behind-the-meter solar installations of up to 30 kilowatts.

An initial allocation of $800,000 will be provided for the scheme, funding grants for about 130 batteries.

Source: Energy News Bulletin

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Origin takes bigger stake in Beetaloo

Sonia Harvey — Tue, 07 Apr 2020 08:20:51 GMT

ORIGIN Energy will buy a further 7.5% interest in its Beetaloo Sub-basin project, in the Northern Territory, from joint venture partner Falcon Oil and Gas.

Under the new agreement, Origin will increase its stake to 77.5% in exchange for paying a further $25 million on development of the Kyalla project in coming years.

It comes a day after the company announced cost cuts.

The onshore Kyalla shale project, dubbed a ‘game changer' by analysts, was put on ice last week over concerns that workers would not be able to access restrictions imposed by the Northern Territory government over COVID-19 concerns.

The JV drilled the Kyalla 117 N2-1H ST2 well to a total depth of 3809 metres including a 1579 lateral section in February. Further appraisal work including fraccing has now been postponed and the well has been shut in.

Elevated gas shows with relatively high liquids were observed in all three of the target reservoirs encountered while drilling.

"Results to date from the Kyalla 117 well demonstrate good reservoir continuity, conductive natural fractures, and continuous gas shows," Origin said in a statement today.

As operator, Origin hopes to frac the well in the first half of next year. The JV is also planning a section well, Velkerri Flank, to spud in the second half of 2021.

Citing the unprecedented circumstances, Falcon CEO Philip O'Quigley said last week the company would act quickly to protect local communities.

Source: Energy News Bulletin

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APPEA Industry protocols and framework - Responding to COVID-19

Sonia Harvey — Mon, 06 Apr 2020 06:27:53 GMT

APPEA have put together a valuable industry fact sheet for to assist with information on meeting the COVID-19 challenges and the upstream oil and gas industry protocols and framework. Get more information here: https://www.appea.com.au/chief-executive-updates/latest-appea-covid-19-updates/

Sun Cable Middle Arm Battery Project

Sonia Harvey — Mon, 06 Apr 2020 06:02:16 GMT

Register your business now for opportunites with Sun Cable's Middle Arm Battery Project. 11 Scopes of Works have been released now through ICN Gateway.

The Middle Arm Battery project is an early works package that will later form part of the Australia-ASEAN Power Link (AAPL) project.

Project design is scheduled to start in 3rd Qtr 2020. On-site works for establishment and land clearing in Q2 2021, with the Battery to be commissioned and online in Q2 2022.

The project is proposed to be sited east of the existing Weddell Power Station, with an installed capacity of 50MW scalable to 500MW. The project is designed to provide active power and ancillary services to the Darwin-Katherine Integrated System.

The project is scheduled for commissioning in 2022, with a 12 month construction period. This will require a notice to proceed in the dry season of 2021 for civil works, with potential for enabling works in late 2020.

Register your interest now: https://gateway.icn.org.au/project/4536/middle-arm-battery-project?st=projects&psid=1586151333

More Batteries, More Renewables, More Local Jobs

Sonia Harvey — Mon, 06 Apr 2020 00:25:59 GMT

The Northern Territory Government has announced two significant steps in its plan for 50% renewables by 2030.

The rapid uptake of solar by households and businesses is already delivering cheaper, cleaner power right across the Territory.

This increase in behind-the-meter solar and the impending connection of new large-scale solar projects to the grid means new investments and policies are required to maintain the stability of the power system.

Both initiatives will create local jobs while delivering stable, reliable and affordable power for Territory families and businesses.

A battery energy storage system (BESS) for the Darwin – Katherine System

The Northern Territory Government has approved the procurement of a large scale battery for the Darwin-Katherine grid at a project cost of $30M. The BESS is expected to pay for itself in approximately five years.

Major benefits of the BESS include:

Increased stability and reliability of power supply. Fluctuations caused by the increasing levels of household and business behind-the-meter solar can be managed quickly and efficiently.
Reduction in carbon emissions for the Territory and costs for Territory Generation. Reducing the need for gas-fired spinning reserve can deliver both cost savings of around $6.4M and emissions reductions of about 50,000 tonnes per annum.
Enabling more renewable energy from large scale solar projects. The potential provision of system services from the BESS to the private sector will be considered.

The provision of central storage technology to increase system reliability and security, and to potentially provide system services to the private sector are actions recommended by the Road Map to Renewables report commissioned by the Government.

Procurement will take place over the coming months with the BESS expected to become operational in the second half of 2022.

Household and Business Battery Scheme (HBBS)

These batteries significantly reduce costs for households and businesses by reducing the amount of power that has to be purchased from the grid.

They also build grid stability and reduce power system costs by replacing demand for gas fired generation during evening peaks with solar energy generated during the day.

Lower system costs mean lower power prices.

Batteries can also be designed to build resilience for families and businesses by maintaining power supply during unavoidable outages that can occur during cyclones and extreme weather events.

Two new initiatives will be implemented to encourage the uptake of behind-the-meter batteries.

Firstly, a $6000 grant will be available to households and businesses for the purchase and installation of solar PV systems with eligible batteries and inverters, or for those who already have solar, for batteries and inverters.

The minimum size for eligible batteries is 7kWh.

Secondly, a new standard Feed in Tariff (FiT) of 8.3 cents per kWh will be offered by Jacana Energy and will apply to all new businesses and households with behind-the-meter solar installations of up to 30kW in size.

All businesses and households who currently receive the premium one-for-one FiT will continue to do so.

They will only surrender the premium FiT if they upgrade the capacity of their system, move premises or take advantage of the battery subsidy.

Households and businesses who have already submitted an application to Power Water for the installation of solar will also be eligible for the premium FiT.

The scheme will be funded by savings from the introduction of a reduced FiT.

An initial allocation of $800,000 will be provided for the scheme, funding grants for about 130 batteries.

Applications for the $6000 grants under the scheme will open Tuesday April 14.

Batteries and inverters will no longer be eligible for grants under the new Home Improvement Scheme or the Business Improvement Grant.

Reforms to the FiT to encourage the take-up of batteries by households and businesses was a recommendation of the Road Map to Renewables report commissioned by the Government.

Further details on the BESS and the HBBS can be found at www.business.nt.gov.au

Quotes from the Chief Minister, Michael Gunner

“We’ve backed renewables and so have Territorians - they know renewables means lower prices.

“Our new $6000 solar and battery grants will see even more Territorians choose the sun and lower power prices - and create more jobs.

“Doing whatever it takes to save lives from coronavirus means throwing the kitchen sink at saving jobs and preparing the Territory for the rebound.

“I’m backing Territorians, solar and lower prices to get it done - we have a bright future if we all stick together.”

Quotes from Minister for Renewables, Energy & Essential Services, Dale Wakefield

“The BESS and the new $6000 grants for home and business batteries are two huge steps forward in our plan for 50% renewables by 2030.

“We want Territorians to have access to the latest and best technology as we build a stronger and more resilient power system for Territory households and businesses.

“These initiatives will help lower power bills while maintaining secure and reliable power for Territorians.”

Media Contacts:

Gerard Richardson (Chief Minister) 0438 693 898
Paige Nguyen (Minister Wakefield) 0428 727 244

Santos pushing on CCS

Sonia Harvey — Fri, 03 Apr 2020 08:17:10 GMT

SANTOS has no plans to defer any spend on its carbon capture and storage development in the Cooper Basin, despite cutting $550 million in capex this year, chairman Keith Spence said during the company’s virtual annual general meeting today.

It has entered front-end engineering and design for the project after spending $20 million drilling a couple of wells last year.

There are no firm figures on how much the project, designed to eventually inject 1.7 million tonnes of CO2 underground per year, might cost but chairman Keith Spence estimated today in the hundreds of millions.

It recently signed a non-binding memorandum of understanding with BP for CO2 cooperation, on the sidelines of a CO2CRC meeting in Canberra.

BP in early March signed a non-binding agreement electing to possibly spend A$20 million at Santos' CCS project contingent on a positive final investment decision.

Santos joined the CO2CRC at the beginning of last month, behind Woodside Petroleum, Chevron, BP, Shell and BHP, and was then hoping to sanction its CCS project before the end of the year.

It would see an initial 300,000 tonnes of CO2 sent back into the reservoirs natural gas was originally pulled from, which will ramp up to 1.7 million tonnes per annum at full capacity.

Santos estimates it can do this for A$30/t and later bring costs down further.

Spence said the CO2, stripped from the natural gas at its Moomba plant, and transported to the nearby fields makes it an initially low cost project.

‘We'll drive it down to $20 per tonne," Spence said. For it to be viable there needs to be a price on carbon and for scale up government support the way the renewables industry has received subsidies.

CCS has, of course, received a lot of government support in previous decades though those projects never proved viable.

Source: Energy News Bulletin

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Prelude still shutdown but Shell working to restore operations

Sonia Harvey — Fri, 03 Apr 2020 01:12:17 GMT

SHELL Australia told Energy News this morning it is still working to restore production at its massive Prelude FLNG project, but is unable to provide a time frame on when it expected the facility to resume at full capacity.

A Shell spokesperson confirmed to Energy News that the facility remained shuttered this morning, but stressed the company but said it was doing what it could to bring produce back

"Our focus is on the safe and stable restoration of production," the spokesperson said.

"Work continues to restore full operations on Prelude."

Shell took the decision to shut the vessel down in February, standing down half of its crew.

The facility's backup power generation had failed and there were issues with toilet facilities, among others.

Since it began operations last June, the Prelude has sent 15 cargoes, shipping a record three cargoes in December. At full capacity it can send four a month, but has not hit this milestone yet.

Energy News understands no customers are currently affected by the lack of LNG supply from Prelude.

Shell also made the decision to delay any final investment decision on the development of its Crux field some 30km from the Prelude which is slated as backfill for the giant U$15 billion FLNG vessel due to the oil price crash, the spokesperson said.

Source: Energy News Bulletin

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Major Milestone for NT’s First Lithium Mine

Sonia Harvey — Fri, 03 Apr 2020 01:01:14 GMT

Minister Paul Kirby's Office

In a significant boost for the NT economy and prospects for local jobs, the Territory Labor Government has granted final approval to Core Lithium Ltd to commence development of its new lithium mine in the Top End.

The Finniss Lithium Project is a proposed open cut lithium mine located along the Cox Peninsula Road, approximately 35km west of Berry Springs.

It is the first ever lithium mine to be approved outside of Western Australia, and is the first new mine of significant scale to be approved in the NT since 2013.

The project estimates approximately two million tonnes of lithium-bearing ore will be mined over the predicted three to four year life of the mine, and will provide around 200 jobs to local Territorians. With the mine only an hour’s drive from Darwin and 35km from Berry Springs, the entire workforce will drive to and from the site each day and no camp will be required.

Lithium is considered a critical mineral that is strategic to the global economy, particularly for new and emerging technologies such as batteries, electric vehicles, mobile phones, high-definition screen displays, solar panels, medical equipment and military technology.

The development of the Finniss Lithium Project has the potential to position the NT as a strategically important jurisdiction for the production, processing and manufacturing of critical minerals to the global market.

Access to the power station, rail and gas facilities, and one hour via sealed road to a local workforce and the Darwin Port position the project to efficiently supply key Asian lithium markets, and provide scope for further processing potential within Darwin itself.

Minister for Primary Industry and Resources, Paul Kirby, has approved the project’s Mining Management Plan (MMP) and issued an Authorisation to Core Lithium Ltd to commence development of the project.

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

“The Territory Labor Government knows that local jobs and economic recovery have never been more important. The resources sector is going to play a huge role in our recovery from the COVID-19 crisis, and the milestone achieved by the Finniss Lithium Project is very good news for Territorians.

“The first three years of this project are expected to inject over half a billion dollars into the NT economy and create around 200 jobs for Territorians within an hour of Darwin.

“We will get through this crisis, and the Territory Labor Government is working hard to kick-start our economic recovery, including creating local jobs for Territorians.”

Quotes from Core Lithium’s Managing Director, Stephen Biggins:

"The Finniss Lithium Project will create more than 200 direct full-time jobs in the Northern Territory, with potential to inject more than half a billion dollars during its first three years of operation into the local economy.

"Core Lithium would like to thank the Minister for Primary Industry and Resources, Paul Kirby and Northern Territory Government for their engagement during the MMP approval process. By working together with the Territory Government the Finniss Lithium Project opens the door for the Territory to be a key supplier of high-quality lithium for batteries to power the growing global electric vehicle market.

“The Territory has the opportunity to play a crucial role in supporting the world's response to reducing emissions and managing climate change risk.”

Media Contact: Tom Ryan 0436 951 084

$5 million Worker & Wellbeing Fund

Sonia Harvey — Mon, 30 Mar 2020 00:08:03 GMT

Office Michael Gunner Chief Minister

The Territory Labor Government will establish a $5 million Worker & Wellbeing Fund to support local workers struggling with the economic effects of the COVID-19 crisis.

The impact of the COVID-19 crisis has meant difficult and uncertain times for many Territorians.

The Territory Labor Government is working round the clock to save lives, save jobs and reduce the economic impacts wherever possible. We have implemented strict border and quarantine rules, a Jobs, Rescue and Recovery Package, and a Small Business Survival Fund.

And we’re going to keep doing more to protect Territorians – whatever it takes.

The Fund will focus on Territorians who are experiencing unemployment, reduced income or who are affected within their workplace because of the COVID-19 crisis.

The Worker & Wellbeing Fund will help make sure Territorians doing it tough get access to the services they need, such as financial counselling, relationship counselling or general wellbeing support.

Additionally, the Fund will assist Territorians navigate the Centrelink system or look for a new job. This can be a difficult and daunting experience, particularly right now. For many, it may be the first time they have needed to access these services.

An advisory group chaired by Wendy Morton, former Executive Director of NTCOSS, with representation from business, community and unions has been established. This group will be tasked with providing advice on how to target the right resources to the right people, as well as identifying where there are gaps in the availability of services.

The Worker & Wellbeing Fund’s main goals are to:

Help people access the range of wellbeing and other counselling or support services that are available
Help people navigate the welfare system and access income and any other financial support available
Help workers who have lost their job find new employment opportunities fast –such as guiding people to job matching services like the Territory Jobs Hub
Assisting Territorians who require access to accommodation and other essentials

This funding is to meet new and emerging gaps and will be available for people who were not already receiving Centrelink benefits such as Newstart or Youth Allowance prior to the COVID-19 economic downturn. It will also be complementary to any initiatives announced by the Australian Government.

Details about the operation of the fund will be made available on 3 April 2020.

Quotes from Chief Minister Michael Gunner:

“This is a once-in-a-century crisis that’s hurting a lot of Territorians in different ways.

“I want to do everything possible to assist Territorians – whether it’s supporting small businesses, helping people look for new jobs, or providing easy access to support services for people who are being put through the ringer.

“We like to say we’re ‘Territory Tough’ up here. But there’s nothing wrong with getting help when you need it. A lot of people are in the same boat and the Worker & Wellbeing Fund will assist people to access the support they need.

“We’re all in this together, we’ve all got to look out for each other.

“We will continue to work for Territorians and get us all through this difficult time. If we stick together, we’ll come out the other side stronger.”

Quotes from Minister for Territory Families, Dale Wakefield:

“We want Territorians to feel supported during this time. This program will provide information about where to go for help, assistance to access the relevant support and provide additional resources for individuals and for wellbeing services such as counselling.

“Asking for help, or a listening ear is important during this unprecedented time. Whether you’re a worker, self-employed or a visa holder - this package is for anyone who is living in the Territory and has been affected by COVID-19.

“We are bringing together the best advice the union movement, business and community sector can offer to guide government on how to help people address their own unique circumstances.”

Work on Kyalla 'game changer' well ceases

Sonia Harvey — Fri, 27 Mar 2020 00:21:53 GMT

OPERATOR Origin Energy and its Irish joint venture partner Falcon Oil & Gas have hit the brakes on development of the highly anticipated Beetaloo Sub-basin shale Kyalla project in the Northern Territory due to concerns over an outbreak of coronavirus.

Overnight, Falcon (30%) told shareholders that all work on the Kyalla 117 N2-1H ST2 well had ceased and workers at the field had been reduced to a skeleton crew.

The Kyalla well successfully reached a total depth of 3809 metres, including a 1579 lateral section, just last month.

Water bore installation and preparation for a fraccing program was well underway.

The Northern Territory is currently under remote community lockdowns as coronavirus cases swelled from eight to 12.

The government introduced new emergency powers restricting access to remote communities which came into effect last night to prevent an outbreak of COVID-19 in far-to-reach regional areas.

In light of these new restrictions Origin and Falcon's employees and contractors are not able to travel to and from the Kyalla site.

The venture hopes the delay will only be for a few months and plan to resume work on the well in the "latter half" of this year.

The company said it would seek Northern Territorian workers to undertake minor civil and preparatory work throughout the interim period.

Citing the unprecedented circumstances, Falcon CEO Philip O'Quigley said the company would act quickly to protect local communities.

"While the joint venture is committed to the Beetaloo project and results to date are encouraging, the focus at this time must be on the health and safety of people," O'Quigley said.

Kyalla has been labelled an exciting ‘well to watch' for many analysts up until this point.

The targeted Middle Velkerri B Shale Pool holds an estimated 2C gas resource of 6.6 trillion cubic feet.

According to consultancy EnergyQuest the Velkerri and Kyalla formations are analogous to the Marcellus shale of the US, one of the most productive, low cost, shales in North America.

Initial evaluation of the vertical section found three source rock reservoir sections identified within the Kyalla Shale Formation, with a thickness measuring almost 900m.

The three sections are known as the Lower, Middle and Upper Kyalla reservoirs. Gross thickness of each interval is between 75m-125m.

When drilling, Origin noted that all three sections exhibited "elevated gas shows with relatively high C3, C4, and C5".

The big-budget Kyalla 117 N2 is the first of two wells the joint venture will drill targeting the Kyalla shale liquids gas play in exploration permits EP117, EP76, and EP98.

Source: Energy News Bulletin

Read more here

‘Piss off’: Chief Minister furious with anti-fracking campaigners for ‘spreading fear’ during coronavirus crisis

Sonia Harvey — Fri, 27 Mar 2020 00:15:26 GMT

THE Chief Minister has launched a furious attack on anti-fracking campaigners for ‘spreading lies’ about FIFO workers and clogging government phone lines in the middle of the coronavirus crisis.

THE Chief Minister has launched a furious attack on anti-fracking campaigners for “spreading lies” about FIFO workers and clogging up government phone lines in the middle of the coronavirus crisis.

East-coast activist group GetUp! started a campaign this week claiming companies like Origin Energy were flouting quarantine measures in the NT and putting the lives of remote community residents at risk.

The campaign claimed fracking has been deemed “essential” in the Territory but the NT Government said this is not true.

Instead, a spokesman from Origin said they had temporarily paused fracking activities at Beetaloo Basin due to the pandemic and scaled back to only having 45 employees on site.

But a spokesman from GetUp! said its concerns about FIFO workers were legitimate.

“Northern Lands Council and Central Lands Council have stated that they are being approached by remote communities concerned about FIFO workers on their community,” he said.

“They’ve seen these workers coming in and out of their shops.”

The Chief Minister said it made him “sick” that GetUp! was trying to “exploit people’s fear in the middle of a national crisis” for political purposes.

“To deliberately lie and scare remote communities like this is despicable and unforgivable,” he said.

“I’ve got people working round the clock to help people who have been left on the scrapheap.

“I don’t need them distracted by these bullshit scare campaigns run by a bunch of Twitter trolls.

“Our phone lines are running off the hook with people worried about their business or their job.

“We’ve got people who don’t know where their next meal is coming from.

“And because of bloody GetUp, our phone lines are clogged up with something that is based on a lie.

“They sit in their fancy office in Sydney and come up with this crap, and they have no idea about the damage they are doing to people over here.

“My message is simple: Piss off. Stop diverting our resources away from saving lives to stopping your lies.”

Source: NT News - Read more here

Jobs Rescue: $50 Million Small Business Survival Fund

Sonia Harvey — Fri, 27 Mar 2020 00:12:57 GMT

Office Chief Minister Michael Gunner

The Territory Labor Government’s $50 million Small Business Survival Fund will help local Territory businesses survive the unprecedented economic impacts of COVID-19.

Coronavirus is hitting Territorians hard and this government is doing everything it can to soften the blow.

This fund is specifically targeted at supporting industries such as retail, hospitality, tourism, and entertainment businesses, including beauty parlours and gyms, who are bearing the brunt of this national crisis.

More than 1000 Territory businesses will be supported through this fund who employed around 10,000 Territorians prior to the restrictions.

The fund will provide payments based on business size and full time equivalent (FTE) employee numbers.

From today, eligible businesses will be able to apply for two payments:

An Immediate Survival Payment of between $2000 and $50,000 to help offset the immediate costs pressures on businesses
A Rapid Adaption Payment of between $1000 and $5000 to assist businesses make the necessary changes it chooses to help adapt to the new operating environment

Immediate Survival Payment

An initial lump sum payment directed to businesses to help offset immediate cost pressures and provide time to plan.

$2000 for business with 1 FTE/sole traders
$5000 for businesses with 2 to 5 FTE employees
$20,000 for businesses with 6 to 19 FTE employees
$50,000 for businesses with more than 20 FTE employees

Business will provide a certified financial/payroll statement identifying number of employees pre-shutdown.

Assessment of eligibility criteria includes demonstrating the impact of the restrictions on the business, including reduction in turnover, impact of fixed costs and employment reduction.

Rapid Adaption Payment

A payment of up to $1000 for sole traders and up to $5000 for other eligible businesses to offset costs incurred in adapting current business model to suit restrictions.
Application based, paid direct to business.
Paid on provision of appropriate invoice. Buy local provisions will be highlighted to businesses.
Expenditure to occur post announcement and applications close 1 May 2020.
After this time businesses have full access to Improvement and Immediate Works grants under the Jobs Rescue and Recovery package.

This is the first stage of the Small Business Survival Fund. The Business Advisory Group is continuing to meet and will provide advice for the next stage of the package.

Businesses can complete an application form on business.nt.gov.au/recovery from 5pm today and will be assessed using the following criteria; that they:

are a legal entity and hold a valid Australian Business Number (ABN) as at 23 March 2020, and
are operating in the Northern Territory, and
is a Territory Enterprise, and
have a significant permanent presence in the Northern Territory, and
employ Northern Territory residents (sole traders are included), and
usually operate in one of the industry sectors affected by the social gathering restrictions announced on 22 March 2020 and 24 March 2020, and
have been directly financially affected by the social gathering restrictions.

The Department will also actively reach out to directly affected businesses to discuss their suitability for support from this Fund, as well as the other support that is now available from both the Territory Government and the Federal Government.

The Small Business Survival Fund is in addition to the Jobs Rescue and Recovery Package and the Tourism Resilience Package announced previously.

The Territory Government is investing nearly $120 million so far in response to the coronavirus. And we will continue to scale up to save jobs.

Quotes from Chief Minister, Michael Gunner

“My only focus right now is saving lives and saving jobs. I’ll do whatever it takes to protect Territorians.

“The Territory Government is investing nearly $120 million so far in response to the deep economic impacts of the coronavirus crisis. And we will continue to scale up to save jobs.

“When you spend a dollar in the Territory, you save a Territory job – and in times like these we need our community to band together to keep our small, local businesses open, and as many locals as possible working.”

Australia staring at a stark lack of gas supply beyond 2025

Sonia Harvey — Fri, 27 Mar 2020 00:09:30 GMT

AUSTRALIA’s energy market operator (AEMO) has released its annual Gas Statement of Opportunities report for 2020, warning that pipeline capacity and maturing gas fields could pose a significant risk unless further action is taken to ensure energy security.

The country remains hungry for energy despite being the top exporter of LNG, and today's AEMO Gas Statement of Opportunities report found Australia already has enough gas to satisfy demand until 2025, but only if LNG cargoes are redirected as needed.

The GSOO only looks at the eastern states and does not take in Western Australia, which accounts for two thirds of Australian LNG exports and is well supplied with gas thanks to its 15% domestic gas reservation policy.

Current production from existing and committed gas developments should be adequate between 2023 and 2025, the report states.

However, the glaring problem is the sheer level of gas exported from Australia as LNG.

AEMO warned unless industry curtailed its exports of LNG and redirected some of it to the domestic market, the east coast energy sector could face a lack of supply as demand continued to grow.

More concerning, however, is that after 2025 existing and committed gas production and projects in southern Australia would not be enough to meet east coast demand. Supply will fall by roughly 35% after 2023, according to the report.

It comes as BHP announces the end of its Minerva gas field which reached the end of its life last year. Production from Minerva ceased in September.

Otway Basin production will also hit east coast supply, unless field development of plant modification projects proceed.

Several other Gippsland fields are also projected to reach their end of life between mid-2023 and mid-2024.

There is also an added concern that there will not be enough pipeline capacity to deliver gas to market from northern states.

The lack of supply could be so bad that during winter 2024 there could be supply gaps of between 13 terajoules and 374 TJ even at peak day production, according to the ‘Central Scenario' of the report.

AEMO warned both government and industry had a role to play going forward, and one option on the table is redirecting LNG cargoes destined for the international spot market to domestic ports.

Plans have been flagged for four terminals; however, they are very much in the early stages of development but analysis from S&P Platts yesterday found import terminal developers are confident to have one up and running by 2022, despite Victoria recently lifting its conventional exploration moratorium. It's believed by most analysts supply will dwindle before new resources can be commercialised.

Last year South Korean developer EPIK appointed ANZ as its financial advisor for its Newcastle GasDock LNG project in New South Wales.

Australian Industrial Energy, backed by Andrwe Forrest, also plans one and won ‘critical infrastructure' approval for its NSW Port Kembla terminal in 2018.

The peak body representing the oil and gas sector, the Australian Petroleum Production Exploration Association acknowledged the responsibility of the gas industry but said it was doing all it could.

"APPEA members are taking all steps necessary to ensure the production and delivery of gas supplies continues," APPEA chief Andrew McConville said.

"With exploration at record low levels, low oil prices and COVID-19 pandemic meaning both gas demand and gas supply face challenges, the analysis reinforces how vital it is for all governments to support developing new gas supplies as quickly and as cheaply as possible."

According to the AEMO report, supply in the major consumer states of Victoria and New South Wales over the next few years will all but evaporate as legacy gas fields decline.

Queensland and the Northern Territory will enjoy sufficient supply due to their shale and coal seam gas resources.

Source: Energy News Bulletin

Read more here

Organisations unite to support NT businesses - Business opportunity portal now open

Sonia Harvey — Thu, 26 Mar 2020 06:49:50 GMT

COVID-19 is already damaging our economy and now more than ever it is crucial to support local industry. We can start by promoting available business opportunities.

Energy Club NT is working with ICN NT and the Northern Territory Government to support business to business growth, promote local opportunities and the further localisation of supply chains during the COVID-19 crisis.

Through ICN’s online Gateway platform, a portal has been established to connect local Territory businesses to opportunities of all sizes.

We encourage our members to submit any business opportunities or problem statements to ICN for promotion to the local business community. We further encourage our members to express interest against the ‘Any opportunities’ package of work, to be notified of opportunities and also to promote these opportunities to the broader business community.

To list an opportunity on the portal businesses will need to:

Download and complete the ‘Opportunity Listing Template’ available in the Project Documents on the page
Email the completed form to ntopportunities@icnnt.org.au

Once assessed, your opportunity will be listed on the page and open for expressions of interest and/or direct business contact.

ICN NT is running this initiative free of charge to support local businesses during these challenging times.

Visit the Northern Territory Opportunites portal here: ntopportunities.icn.org.au

"We are here to support our wide demographic of energy industry members and the local business community wherever we can. Please don't hesitate to reach out if there is anything I can do to assist you and your organisation."

Sonia Harvey

CEO - Energy Club NT

Media Contact: Kevin Peters | ICN NT | 08 8922 9422

Department of Primary Industry and Resources: industry update from the Chief Executive: 25 March 2020

Sonia Harvey — Thu, 26 Mar 2020 00:45:00 GMT

The Northern Territory’s resource sector

As part of measures for controlling the transmission of COVID-19, the Northern Territory Government has implemented border controls, effective from 4pm on Tuesday 24 March 2020.

These controls, applied to all access points by road, rail, air and sea, apply to all people entering and leaving the Northern Territory (NT), including employers and employees operating across the NT’s resource sectors. These controls seek to protect the health of Territorians in reducing the spread of COVID-19.

What you need to know:

Resource industry operations in the NT are considered ‘critical industries’.
Specialists critical to maintenance of competitive operations of critical industries are considered ‘essential travellers’ and fall into exemption categories if they:
- are essential to operations
- must undertake time-critical work
- must be physically present, and
- cannot be temporarily replaced with workers sourced from within the NT.
  .
Cross-border transit to work sites:
- Interstate employees and contractors will be assessed at border control points and should carry photo identification such as a drivers’ licence.
- Employers should provide transiting employees an authorisation letter stating their name, working dates, transit path and work location to show to border control staff.
- Workers who live in the NT and work interstate must satisfy the requirements of their destination jurisdiction.
  .
Transport and freight:
- Non-residential transport and freight services are exempt from the border control arrangements and will continue to come in and out of the NT. This will not impact the delivery of essential goods and services.
  .
Application for continued operations:
Resource companies should submit an application for exemption to self-quarantine to the NT Chief Health Officer for merit assessment on the grounds that this class of persons, is governed by a COVID-19 management plan, imposed by the employer of the person or class of persons, to prevent the transmission of COVID-19 to the public. Applications should include:
- company transmission prevention control measures in accordance with NT Department of Health advice and the Minerals Council of Australia/Australian Petroleum Production & Exploration Association Resources Sector National COVID-19 Response Protocols
- evidence of strategies to reduce staff movement to essential staff only
- evidence of measures to support isolation and contact tracing in the event it is necessary.

Applications for exemption should be submitted to doh.pcc@nt.gov.au which are being reviewed with priority.

Alister Trier
Chief Executive

Credit agency backs Santos

Sonia Harvey — Thu, 26 Mar 2020 00:38:56 GMT

THIS week S&P Global Ratings said Santos has a “solid buffer” to withstand the low oil price thanks to its good work building the balance sheet these past three years while it also put Woodside Petroleum on a watchlist for a possible ratings downgrade.

Santos closed higher than its peers yesterday on the ASX, seeing a 20% rise in its share price compared to an overall energy sector rise of around 5%, helped along by S&P's afternoon release.

"The company's recently announced measures to preserve cash should support the key ratio of funds from operations (FFO) to debt at between 20% and 25%" by the year's end," S&P said.

That forecast takes in its price assumptions of $30/bbl oil for the rest of 2020, $50/bbl oil next year and $55/bbl oil in 2022.

After the 2015-2016 price slump that sent the oiler into the red it "emerged with a more resilient business model," it said.

"We believe Santos' production portfolio will outperform peers in a lower oil price environment, given that about 30% of Santos' production is domestic gas linked to the consumer price index."

In addition, about 15% of the company's oil-linked liquefied natural gas portfolio will benefit from hedging at oil prices of below US$54/bbl over the next nine months."

It helps that the company's LNG through 2020 is 95% contracted largely to South Korea and Malaysia.

S&P also likes that the Adelaide company will reduce free-cash flow breakeven price to $25/bbl this year, part of a suite of moves announced by Santos Monday to survive low oil demand and even lower prices. It also committed to reducing capex by 38% this year.

"In addition, some LNG price structures provide relief against a significant oil price drop, given the existence of LNG 'S' price curves, whereby oil price-linkage flattens at currently depressed prices," S&P said.

While many contracts are up for price reviews the "scope for change is limited by contract terms," Santos chief Kevin Gallagher said some months ago.

Santos also committed to delaying sanction for development of its Barossa gas field, which S&P sees as prudent.

"We believe growth projects sanctioned in the current environment would indicate a heightened risk appetite, and would likely be negative for the company's credit profile," it said.

Meanwhile this week it placed Woodside Petroleum on CreditWatch Negative suggesting "under our current oil price assumptions, including US$30 per barrel oil in 2020, we forecast that forecast funds from operation to debt could materially breach 30% in 2020 and thereafter, should the Scarborough-Pluto integrated project proceed.

"We may lower the rating by at least one notch if Woodside is unwilling to take effective and timely actions to preserve its financial profile amid the significantly depressed oil and LNG markets and funding requirements associated with the Scarborough-Pluto LNG project."

Source: Energy News Bulletin

Read more here

Central growth stunted as projects delayed

Sonia Harvey — Thu, 26 Mar 2020 00:24:20 GMT

CENTRAL Petroleum has been racing to reach a final investment decision for its Range project in the Queensland Surat Basin, but with the market suddenly sidelined by the outbreak of COVID-19 and the global and domestic economy struggling to stay afloat, has had to shelve its project for the time being.

Business growth has been the company's priority for the last year and has seen it accumulate a portfolio or operating assets and exploration tenements.

However, the company told the share market today while there was no direct material impact to its current production from a low oil price and volatile market, it expected logistical challenges to hinder its growth projects.

Central and its 50% joint venture partner, fertiliser manufacturer Incitec Pivot, had been targeting an FID for the Range coal seam gas project in Queensland for early 2021. Incitec had been progressing Range as a way to shore up much-needed domestic supply.

Pre-FID activities and planning for a three-well appraisal pilot project were well under way. But now, due to a crashing market the venture has abruptly stopped work. Neither partner has a time frame for when work may recommence.

Incitec told shareholders it "remained committed" to the domestic gas project, which has a 2C contingent gas resource of about 130 petajoules, and hoped to restart activities "as soon as possible."

Central insisted it too was committed to the project and would accelerate operations "as soon as business conditions permit."

The company had a cash balance at the end of February of $27.2 million and has no major exposure to the low oil price as about 90% of its production is gas, not oil.

It also recently extended its debt facilities to September 2021 and only has a $5 million repayment due in the next 12 months, positioning the company in a relatively stable position.

Other exploration and development projects, including Central's Northern Territory Amadeus Basin project has been put aside as they are "no longer feasible given the logistical constraints" imposed by travel and infrastructure restrictions imposed by the Territory government to isolate vulnerable remote communities from the virus.

The company said it would revise its exploration schedule after market conditions stabilised. Again, there is no time frame on when this could occur.

Source: Energy News Bulletin

Read more here

International majors slash billions in spending

Sonia Harvey — Thu, 26 Mar 2020 00:18:12 GMT

INPEX is just the latest major oiler to flag deep cuts to its operations and capital expenditure, today announcing at its annual general meeting it was reviewing investment and seeking cost saving measures.

Inpex today confirmed to shareholders it was considering its options and is looking to make cuts following a growing trend of other international oil and gas producers. No specific details were given however.

Over the last fortnight, as the oil price plunged below $30 a barrel and fears of a global recession ramped up, international oil and gas companies have taken the axe to capital expenditure and operational expenditure budgets.

Shell plans to lop US$9 billion from its spending plans as it seeks to weather out the collapse in oil prices, cutting operating costs by $3 billion and capex by $5 billion.

Shell has also suspended its buy-back share program, saying its "decisive action" would protect cash flow and guarantee dividends.

French oil producer Total said it would slash operating costs by $500 million and suspend its $2 billion buyback program having already repurchased about $550 million of shares.

BP has said it is "making interventions" and has flexibility to cut its spending by 20%. BP is yet to make any specific spending figure for 2020 public.

Equinor said just this week it would follow suit reducing capex by US$3 billion to ride out the oil price and COVID-19 pandemic. It had already suspended a $5 billion share buyback program.

Equinor is postponing all its US shale drilling and expects to be cash flow neutral at an average oil price of $25/bbl.

Overnight Eni, joined its fellow European-based multinationals, revising its planned activities and reducing its capex by around US$3 billion. This equates to 35% of its planned capex.

Chevron has also made big cuts this week in the face of oil price woes too, outlining measures which include cutting capex by US$4 billion, or 20% and also suspending its annual share repurchase program.

Chevron's biggest cut will target upstream unconventionals, primarily in the US Permian Basin, where the company will slash more than $2 billion in spending.

A further $1.2 billion will be hacked from upstream projects and exploration both across its US assets and internationally.

Around $800 million will be shaved from its downstream and chemicals business.

ConocoPhillips has committed to US$2.2 billion worth of spending cuts.

The Houston-based oil business released a statement last week saying it would reduce its forecast operational capex by $700 million, or 10% and cancelling $500 million worth of planned 2020 share repurchases.

On a combined basis, the capital and share repurchase cuts represent a reduction in 2020 cash uses of $2.2 billion, according to the company.

"Our industry is clearly experiencing an unprecedented event brought about by simultaneous supply and demand shocks," ConocoPhillips CEO Ryan Lance said.

Source: Energy News Bulletin

Read more here

UPDATE - NT BORDER RESTRICTIONS AND EXEMPTIONS

Sonia Harvey — Tue, 24 Mar 2020 03:44:00 GMT

Protecting our health is imperative and should be everyone's priority... Maintaining livelihood for business is next. Stay safe everyone and support each other through trying times!

UPDATE: Factsheets now available to assist industry

Fact sheets are now available from the Northern Territory government in regard to how industry might apply for exemptions to support their operations and workforce requirements.

Northern Territory border restrictions

The Chief Health Officer has granted further directions under the Public and Environmental Health Act 2011 which allow Police to exercise their ability to control the entry of persons into the Territory to minimise the risk of spreading coronavirus and keep Territorians safe.

The NT has secured its borders by introducing a two-week quarantine period for anyone arriving in the Territory, with an exception for those providing goods and essential services during the coronavirus pandemic.

This will not affect lawful trade or commerce, essential activities will not be impacted, and we will continue the supply chain.

From 4:00 pm Tuesday 24 March, all non-essential travellers arriving at the Territory borders will be required to go through a police control checkpoint to verify their medical status and purpose of their travel into the Territory.

They will also be required to self-isolate for 14 days upon arrival, with penalties for those who do not comply.

All arrivals including Territory residents will be screened and, if deemed a non-essential visitor, would be told to quarantine themselves. Territory Police and the Public Health Unit will ensure compliance and help people access support where needed.

This includes directing people to self-isolate for 14-days once they arrive.

Complete up to date information: https://coronavirus.nt.gov.au/

The Northern Territory’s new border restrictions begin: We answer all your questions

Sonia Harvey — Tue, 24 Mar 2020 00:28:36 GMT

Source: NT News

THE NT’s borders will close at 4pm today, Tuesday March 24, meaning everyone who arrives in the Territory must be quarantined for 14 days to prevent the spread of coronavirus, unless for special exemptions.

Q1: What if I see someone out who I know is supposed to be self-isolating after just arriving from interstate? What should I do?

Call the NT Public Health hotline on 1800 008 002 and report them.

Q2. What if someone gets caught failing to follow the self-isolation rules? What will happen to them?

The self-isolation rules are enforceable by law, and a fine of up to $62,800 applies.

Q3. Further to Q2, what will happen to someone caught failing to self-isolate who then turns out to be coronavirus positive? Will extra action be taken against them?

As above, you can be fined $62,800. There are no specific actions for people who turn out to have the virus at this stage.

Q4: I’m a FIFO worker working in the Territory but who lives interstate? Do I have to self-isolate for 14 days every time I return to my job in the Territory after I go home from my swing?

The NT Government held industry meetings on Monday to consult on implementation and exemptions. There will be an exemption that FIFOs can apply for. Those who get exemptions will still be required to follow certain protocols, i.e. social distancing. More information and the application process will be published today.

Q5: I’m a Territorian and have a home here. But I mainly work interstate because that’s where my job takes me. How will these changes affect me?

It depends on what your job is. Unless you fall into one of the categories described in question 12, you will have to self-isolate each time you return home to the Territory.

Q6: I live in the Territory but travel interstate regularly for medical treatment. How will these changes affect me?

You can apply for an exemption to the self-isolation rules to the Chief Health Officer if you are travelling interstate for essential medical treatment.

Q7: I live in the NT just inside the border with WA. I go into Kununurra every couple of days for supplies. How will these changes affect me?

South Australia’s Premier Steven Marshall yesterday assured people who lived in border communities they would still be allowed to cross into South Australia, so long as there were no outbreaks of coronavirus in those towns.

The NT is planning to make similar exemptions for border communities here and the people who will be able to apply for exemptions if they go to school or shop over the border (for example).

More information on who can apply for exemptions will be available in the coming days.

Q8: What if someone returns to Darwin from interstate after today and goes back to living with their family or housemates? Are the others able to come and go although they have had contact with someone who has been interstate and is now in isolation? Or do all household members now need to self-quarantine as well?

According to advice from the Australian Government, your housemates or other family members should live somewhere else if possible. If it’s not possible, the person who is in isolation should have their own bedroom and bathroom and wear a mask when home with other people.

The NT Government has also opened a drive-through testing clinic at the Manigurr-Ma Village in Howard Springs, and Territorians who aren’t sick but need to self-isolate can stay there if they need to.

Q9: What about the remote border points, such as the Tanami Highway? How will they be policed?

Police and Australian Defence Force personnel will be deployed at checkpoints on the major roads into the NT from 4pm today.

NT Police Commissioner Jamie Chalker warned people on Saturday that for anyone attempting to sneak into the Territory using more remote roads, that NT Police would also be using technology to monitor travellers’ comings and goings.

Q10: Is there a hotline I can call to get more information on how these changes will affect my circumstances?

Yes, you can call the NT hotline on 1800 008 002 or the national hotline on 1800 020 080.

Q11: How long will the NT’s new border restrictions apply for?

According to the Chief Minister and Police Commissioner, at least six months.

Q12: Who is exempt from having to self-isolate?

People involved in national and state security and governance.
Active military personnel required to be on duty in the Territory while in the Territory.
A member of the Commonwealth parliament who is ordinarily resident in the Territory.
Health service providers and personnel.
Some transport, freight and logistics workers.
Specialist skills critical to maintaining key industries or businesses or infrastructure.
Emergency services.
Other individuals or groups will be able to apply for an exemption to the Chief Health Officer, for instance visiting a terminally ill relative, or medical grounds, or interstate travel for essential medical treatment.

Q13. It sounds like there are going to be many people who will be exempt from the new restrictions. Will they all be checked for any signs of coronavirus when they enter the Territory though? If not, couldn’t any of them just as easily bring it into our community unknowingly?

Yes. All arrivals including Territory residents will be screened at the border.

Q14. What if I have to travel to another state with the same border restrictions for work or other reasons? Say I travel from NT to SA for two days work. It seems I’ll have to self-isolate for 14 days in SA before I spend two days working. When I’m finished do I have to self-isolate for another 14 days when I return home to the NT?

Unless your job falls into one of the exemption categories, yes you would.

Source: NT News

Will COVID-19 help or hinder decarbonisation efforts?

Sonia Harvey — Mon, 23 Mar 2020 07:36:32 GMT

AS the COVID-19 pandemic slams the economy, analysts fear it may slow down decarbonisation efforts, as coal, relatively unaffected by the oil price crash, could be seen as the fuel source of choice for companies and governments stripped of all financial capacity to invest in renewables.

In analysis released on Friday, Rystad said coal was already cheap before the economic shockwaves ripped through the energy sector, and the demand for it in China, during its own lockdown, was accompanied by a domestic production cost, balancing the market.

Now, it believes coal mining capacity is moving quickly back towards full capacity and power generation returning to normal levels, meaning thermal coal import demand into China is likely to total close to the 2019 annual numbers, though reports indicate some ports have already reached their 2020 annual quota limits.

It also noted the cheap price of oil, which is used as a fuel in coal mining could reduce coal output costs by a few dollars per tonne.

"With ARA prices already so low, any cost decrease will potentially give struggling producers selling to Europe a little breathing room, rather than allowing prices to move down any further," Rystad's head of global coal research Steve Hulton said.

The analysis noted a possible outcome of the pandemic could be a shift in public opinion and policy regarding the speed of transition towards a low carbon power generating future, noting coal to be a cheap, but problematic, source of energy to rebuild the economy.

"These factors could potentially lead to a slowing of the rate of the energy transition," Hulton said.

Separate analysis from Wood Mackenzie noted the cheap price of gasoline could also de-incentivise people from purchasing electric vehicles.

But it did say the volatility of oil market could lead to energy companies losing their appetite for oil and gas projects and instead invest in renewables, particularly given the ambitious decarbonisation targets some have set for themselves.

WoodMac analyst Valentina Kretzschmar said solar and wind projects have offered much lower rates of return than oil and gas projects, but now with the oil price through the floor this will no longer be true.

"Renewables projects suddenly look as attractive as upstream projects at US$35 a barrel," she said. The oil price has since slipped to $26/bbl.

International Energy Agency executive director Fatih Birol has urged governments to use their economic rescue packages to support low-carbon energy investment.

Source: Energy News Bulletin

Read more here

New rules for oil and gas operators amid COVID-19 outbreaks

Sonia Harvey — Mon, 23 Mar 2020 04:53:46 GMT

CHAMBER of Minerals and Energy Western Australia chief executive Paul Everingham has said the new WA government rules that have effectively shut down the state’s border, will see fly-in-fly-out worker flights “massively curtained” with the majority of non-essential staff now sent home.

Critical oil and gas facilities will continue to operate Everingham said over the weekend, but worker health and safety in the resources sector is the top priority.

All entry to Western Australia will be restricted, by road, rail, air, and sea from 1.30pm AWST on Tuesday.

"We're taking extraordinary measures to ensure our workforce and the communities in which we operate are not impacted," Mr Everingham said at a press conference alongside WA state premier Mark McGowan yesterday.

"Now is not the time to think about profitability," he added.

More than 240,000 people are directly employed across Australia's mining and energy resources industry. Around 100,000 of these work in Western Australia.

Under the new rules initiated by the government, some FIFO personnel will still be allowed to enter and depart on dedicated charter aircraft that leave from Perth airport and arrive at specific oil and gas facilities.

However, all workers will be required to undergo testing at facilities and checks will need to occur before interstate staff can enter sites.

Each oil and gas facility will now be required to have trained medical professionals, including doctors, onsite to manage potential outbreaks of COVID19.

Operators will also need to create specific quarantine zones and specialised isolation facilities.

Source: Energy News Bulletin

Read more here

Barossa delayed: Santos confirms

Sonia Harvey — Mon, 23 Mar 2020 04:48:49 GMT

SANTOS confirmed the inevitable this morning: Barossa’s sanction has been delayed..

The Barossa field was due for final investment decision in the next quarter and would be destined as backfill for the Darwin LNG plant as the current Bayu Undan field goes into decline.

It has also "re-phased" its planned spend at PNG LNG, the ExxonMobil-operated LNG project that was planning a one train expansion and commercialisation of the P'nyang gas field. Given the joint venture's gas agreement talks with the Papua New Guinea government had already stalled it is no surprise.

"Barossa remains an important project for Santos due to its brownfield nature and its low cost of supply," managing director Kevin Gallagher said this morning.

It will cut spending by almost 40% making it the second major ASX-listed oiler to revise guidance after Oil Search cut all spend guidance and announced the delay of a farmdown of its Alaska project last week.

Santos will lower its capital expenditure this year by $550 million and will cut $50 million from cash production costs and is now targeting a lower breakeven cost of US$25 per barrel.

"The reductions in expenditure in the base business are not expected to impact 2020 production guidance," it said.

The company said it generated $186 million in free cash flow in the first two months of this year.

It has hedged a portion of its oil and has fixed price gas contracts to fall back on - which it said will account for 35% of this year's sales volumes - and recently began a new 12-year domestic gas contract in Western Australia for 120 terajoules a day, which is priced in US dollars.

It has 6.2 million barrels of oil hedged this year at a floor price of US$54/bbl.

It still expects its acquisition of ConocoPhillips Northern Australia assets to complete next quarter and will then farm down a share of the assets to SK E&S as planned.

In October it announced it was taking a larger share of the assets it already shared with the US oiler for a total of $1.4 billion, but would sell down 25% interest in Bayu-Undan and DLNG to SK for $390 million, giving the latter a larger stake.

It said there are still "a number of interested parties" it is talking to regarding selling a stake in Barossa.

It expects gearing of around 35% "reduce by year-end based on the current oil price environment and including a dividend based on the free cash flow policy".

Its debt covenants are not under threat at current prices for a number of years.

Source: Energy News Bulletin

Read more here

400 jobs on the line so far as COVID-19 hits operations

Sonia Harvey — Fri, 20 Mar 2020 00:48:40 GMT

OIL and gas operators are facing uncertainty on all fronts today, as the coronavirus takes a stranglehold of the market and the government introduces harsh new travel restrictions.

This morning, unions released a statement attacking gas giant Woodside Petroleum for standing down 400 workers without pay from its Western Australian operations.

Over 400 contractor employees from Woodside's Goodwyn and North Rankin platforms, along with Woodside floating production storage and offloading units, have been summarily stood down, according to the Australian Workers Union.

The AWU condemned Woodside, dubbing the move "a brutal act of industrial bastardry."

"Today's decision by Woodside is maybe the most heartless corporate response we've seen to the COVID-19 crisis to date," said Offshore Alliance spokesperson and Australian Workers' Union national secretary Daniel Walton said.

The 400-worker figure has been challenged by a second source however, who said the worker count was much less.

Energy News understands Woodside is meeting with contractors this afternoon.

Energy News has approached Woodside for comment.

According to the unions, Shell, Inpex and Jadestone have come to arrangements with employees and are providing employees with flexibility and special payments.

"Shell, INPEX, even Jadestone — all have proven that it's possible to balance a response to coronavirus with basic decency to your workforce. For Woodside, an Australian in the market, to fall so short is hugely disappointing," Walton said.

Source: Energy News Bulletin

Read more here

World's biggest miner begins hydrogen journey

Sonia Harvey — Wed, 18 Mar 2020 07:40:43 GMT

MINING giant BHP has joined with Anglo American, Fortescue and Hatch to form a Green Hydrogen Consortium aimed at finding ways to use green hydrogen to accelerate.

The main aim of the consortium is to collectively help to eliminate the obstacles to the adoption of green hydrogen technologies.

The goal is to identify opportunities to develop green hydrogen technologies for the resources sector and other heavy industries, and provide a mechanism for suppliers and operators to contribute to and engage with these development activities.

Some of the proposed activities include undertaking research, technology and supply chain development, and piloting green hydrogen technologies to seek to de-risk and accelerate the technologies.

Ontario-based engineering firm Hatch has been appointed as the project management and governance facilitator of the new consortium.

The consortium will work collaboratively with customers and suppliers to find solutions for the emissions associated with the use of their products and in their supply chains.

Western Australia minster for regional development Alannah MacTiernan said the collaboration would cement the state's place on the world stage as a green hydrogen innovator and producer.

"Green hydrogen provides a real opportunity to reduce diesel consumption and decarbonise mine site operations, with potential for fuel cells to power fixed and mobile plants, mining vehicles and feedstock," she said.

In late 2018, FMG formed a A$20 million research hydrogen research partnership with CSIRO, while Anglo has been looking into hydrogen fuel cell mining trucks.

Source: Energy News Bulletin

Read more here

Coronavirus drill delays

Sonia Harvey — Wed, 18 Mar 2020 06:20:37 GMT

BOTH the listed Gas2Grid and the private Timor Resources, a subsidiary of engineering firm Nepean, have reported drilling delays as equipment is stuck in limbo due to coronavirus COVID19 outbreaks.

Timor Resources, which plans the spud Timor-Leste's first onshore wells in four decades, has had to push back the date from May 1 to somewhere between May 22 and June1.

Managing director Suellen Osborne told Energy News via email yesterday that as factories in China were closed for 21 days the ports have a backlog of cargo to move.

"Covid19 has caused havoc on supply chains. We have purchased our wellheads and casings from Petroil in Tianjin and this was purchased in September 2018.

"We have struggled to secure trucks and now we have seen two vessels cancelled as they are not travelling to Dili. The majority of our long leads items are ex-China," she told Energy News.

"We have again booked our cargo, casing and well heads on the next ship, our rig comes onshore Timor in the next four days."

She said all equipment had been sent on breakbulk cargo to Kupang and will be trans-shipped to a private barge then sent to Suai on the south coast close to where Timor Resources plans its ten-well campaign.

Well casing is currently sitting at a port in Tianjin waiting for a ship.

Timor is hunting for oil on the south coast, home to several historic wells and some oil seeps and plans an eventual 1-well campaign , with five wells this year in one permit it operates under a production sharing contract arrangement with the Dili government and five more in its other permit in early 2021.

Wells Karau, Kumbilli, Laisaipi, Lafaek and Raiketin will be drilled in Permit A this year.

The company has two onshore permits in the south close to Suai where the nation plans to eventually develop an LNG export terminal to commercialise gas from its Greater Sunrise fields.

Meanwhile ASX-listed smallcap Gas2Grid warned shareholders late yesterday its activities across the Philippines could face significant delays due to restrictions in movement and equipment availability following outbreaks of the coronavirus COVID-19.

Source: Energy News Bulletin

Read more here

BRIGHTER: The Chef’s Secret Season 2 – Every Episode!

Sonia Harvey — Wed, 18 Mar 2020 06:08:29 GMT

Adrian Richardson been cooking with natural gas to sizzle up some delicious recipes, igniting flavour that will impress your family and friends in Season Two of The Chef’s Secret.

You can now binge all six episodes right here, and check out each of the written recipes at the link next to every episode description!

Check out all the episodes now online!

Drag queen superstar RuPaul cops shade over oil interests

Sonia Harvey — Wed, 18 Mar 2020 05:53:22 GMT

DRAG QUEEN pop icon, RuPaul, owns 66,000 acres of prosperous land in Wyoming, and leases the mineral rights to oil and gas operators.

In an interview with NPR, RuPaul Andre Charles (RuPaul) revealed she owned a "modern ranch" and had no problem leasing the mineral rights to oil and gas operators.

The interview was conducted by Terry Gross and centred on RuPaul's "recipe" for a successful life.

RuPaul, who became a household name by creating reality television series RuPaul's Drag Race, noted a major step in her success was owning the ranch along with her Perth-born husband Georges LeBar.

"A modern ranch, 21st-century ranch, is really land management," RuPaul said.

"You lease the mineral rights to oil companies. And you sell water to oil companies. And then you lease the grazing rights to different ranchers."

Social media exploded following RuPaul's transparency that she benefited financially by leasing mineral rights to energy companies.

Thousands of Twitter users accused RuPaul of promoting "dangerous" fraccing.

"Finding out RuPaul fucking fracks is like being slapped across the face after being shoved to the ground by coronavirus and kicked by boomers," one twitter user said.

Source: Energy News Bulletin

Read more here

THE TERRITORY’S JOBS RESCUE & RECOVERY PLAN

Sonia Harvey — Wed, 18 Mar 2020 05:04:30 GMT

The Territory Labor Government will deliver a $65 million Jobs Rescue & Recovery Plan to protect Territorians from the deep economic impacts of the coronavirus.

Our plan is all about keeping shops open, cash flowing and Territorians working.

We acted fast by delivering Australia’s first stimulus package last month – a $2 million Tourism Reliance Package to protect tourism businesses and jobs.

Now we are going further to save jobs, protect businesses and keep the Territory’s economy on the road to recovery.

The best way to protect the economy is to save local jobs, not bring in deep cuts.

This is our second package and we are actively considering more options to support local businesses in the short-term and get Territorians spending more locally.

Our plan’s number one focus is jobs – protecting existing jobs and creating new jobs. The experts have told us the best way to do that is to get money into the pockets of Territorians that can be spent in local businesses – so that’s exactly what we are doing.

The Territory Labor Government will keep doing everything it can to protect Territory jobs, but we know we can’t do it alone.

We’ve been working with industry and small business owners to develop this economic package. And we will continue to partner with the private sector and NGOs to protect Territorians as much as possible from the impacts from the coronavirus.

When times get tough, Territorians need to stick together and work together. That’s what we’ll keep doing.

All measures will begin within approximately two weeks and money is expected to be spent within six months. More information can be found out: business.nt.gov.au/recovery

HELPING TERRITORY BUSINESSES AND FAMILIES

$20 million Business Improvement Scheme

This is aimed at helping businesses get customers back into premises by undertaking improvements to a Territory business. All eligible businesses will receive $10,000. If the recipient also wants to put in their own $10,000, they will then get an additional $10,000 from the Government. This creates a $30,000 grant (with business pitching in $10,000 of their own money). The upgrades and purchases have to be from another Territory business. This could include buying new equipment, new shop fit-outs and physical changes to attract customers

$5 million Business Structural Adjustment package

This package will assist businesses who need to physically adjust to the 100 person rule or to establish or upgrade their online presence to adjust to changing behaviours of consumption. The Chief Minister has directed public servants to personally speak with affected local businesses. All businesses can apply, but the Department will be focusing on the hospitality sector first (such as restaurants). Terms and conditions and a hotline will be released soon.

$5 million Immediate Works Grants Package

This package reintroduces the Immediate Works Grant for incorporated not-for-profit and community organisations – including clubs - to undertake repairs, renovations and upgrades to their premises/facilities. Applicants can apply for grants of up to $50,000, which will then be matched dollar-for-dollar if the organisation also puts in their own $50,000. Up to $200,000 on a dollar-for-dollar matching basis for amounts above $100,000

Freezing Government Fees and Charges and Electricity Prices

All Government fees and charges – including electricity, water and car registration will be frozen (no increase due to indexation) until 1 July 2021. Electricity prices for small and medium businesses (those paying regulated tariffs) will be frozen from 1 July 2020 (no increase due to indexation) until 1 July 2021.

$30 million Home Improvement Scheme

$6000 grant for Territory homeowners and landlords who also contribute $2000, and a $4000 grant with a $1000 contribution.

SUPPORTING TERRITORY TOURISM

We are supporting our local tourism, hospitality and retail operators by encouraging Territorians to get out and explore their own backyard, with a dedicated intra-Territory campaign developed by local creatives and rolled out via local media channels.
The Government will also boost investment into marketing to encourage tourism as an opportunity to help disperse visitors through the Territory over the coming months, motivating Australian’s to take a self-drive trip is a great way to experience our destination.

RESCUE AND RECOVERY PACKAGE PRINCIPLES

In addition to the announced stimulus packages, the Territory Labor Government response to the coronavirus will operate, to the extent possible, under the following action principles:

Our focus is on jobs NOT cuts
Our approach is to work together with Territorians, the private sector, and Territory organisations - we cannot do this alone
Our financial support needs to be spent, not banked
Our public service will be responsive and flexible to requests for help
Our contracting and procurement decisions need to be fast and fair
Our employees will be encouraged to buy locally and holiday in the Territory
Our sponsorship of events that have been cancelled or deferred will still be used to support that organisation’s work - as agreed/in negotiation with Government.
Our employees will be encouraged to cash out their recreational leave and spend money locally

We will work with the private sector and Territory organisations to encourage their continued contribution to our economic recovery. This includes encouraging:

Banks to be more flexible in their dealings with businesses, particularly in regards to loan repayments
Landlords to reduce or defer rent payments from businesses
The Federal Government to defer or cease FBT on entertainment
The private sector to be more flexible in their contract arrangements with each other
Local governments to undertake their own stimulus packages
Federal Government employees to buy in the NT and holiday in the NT
Federal Government employees to cash out their recreational leave and spend money locally

Media Contact: Gerard Richardson 0438 693 898

Victoria to restart conventional industry

Sonia Harvey — Tue, 17 Mar 2020 05:56:19 GMT

VICTORIA’s conventional onshore exploration ban will end mid-2021 in a move welcomed by a surprised industry after it introduced two bills to parliament.

One bill will formally end the moratorium, albeit a year after it was due to come off, and the other will ban fraccing permanently.

It is a surprising move from a premier who expanded onshore exploration bans and has pushed hard on a renewable agenda but Andrews said he is following the science and is looking to an "orderly restart" of exploration next year after three years of investigation by the Victorian Gas Program.

The results concluded conventional exploration will not "compromise the state's environmental and agricultural credentials".

The study concluded the state could enjoy a $310 million windfall "for regional economies" and create 6,400 jobs.

Companies will soon be awarded the rights over blocks in waters next to existing sites, it said.

The government said gas "will continue to play an important role in supporting Victoria's transition to a cleaner energy future".

Andrews said his government was "backing the science to create… and support regional communities" and banning facing "to protect farming communities".

The difference between the two was not made clear, though scientific inquiries in many jurisdictions, most recently Western Australia, have repeatedly suggested the practice can be safely conducted when scientific guidelines are adhered to.

Source: Energy News Bulletin

Read more here

COVID-19 useful information for business

Sonia Harvey — Tue, 17 Mar 2020 04:37:13 GMT

Please see below links to useful information for business.

These pages will be reviewed and updated regularly with the latest available information.

Australian Government support

The Australian Government has announced an economic response totalling $17.6 billion. This includes the Boosting Cash Flow for Employers measure, providing up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses. Find out more information here .

Secure NT
For the latest updates on the COVID-19 situation, follow SecureNT on Facebook or visit www.securent.nt.gov.au

COVID-19 Resources
A collection of resources for the general public, health professionals and industry about coronavirus (COVID-19), including translated resources, are available on the Australian Government website .

Latest health advice on COVID-19

Australian Government Department of Health - https://www.health.gov.au
The National Coronavirus Health Information Line - 1800 020 080
There is a dedicated COVID-19 hotline number for the NT - 1800 008 002
If you are in Darwin and need to arrange testing, please call the Public Health Unit on 8922 8044.

The Department of Trade, Business and Innovation’s Small Business Champions team are on the ground to meet with businesses and provide support as required. Contact the Small Business Champions team on 1800 193 111.

Timor Licensing round at AOG best attended of roadshow

Sonia Harvey — Mon, 16 Mar 2020 06:28:42 GMT

THE second Timor-Leste breakfast which opened at the Australasian Oil and Gas Summit in Perth Friday followed by a rundown of the nation’s second-ever licensing round was well attended despite the shadows hanging over what could yet be the year’s last industry conference.

Petroleum and Minerals Authority (ANPM) head Dino Da Silva told the room it was the best attended event yet of the roadshow.

Timor-Leste's oilmen have been on since October, with double the 40 or so who showed up at conferences in Houston and Abu Dhabi attendign the Perth event.

Energy News understands Timor-Leste's stand, strategically located beside the Industry Supply Forum where Western Australian Premier Mark McGowan and Woodside Petroleum COO Meg O'Neill delivered keynote speeches Wednesday, was so busy staff missed lunch Thursday.

Still, appetite for exploration seemed muted with most companies registered already holding assets in the nation, such as Woodside, Eni and Santos, once its buy of ConocoPhillips' assets completes.

The offer, which has 11 offshore blocks and seven onshore, is the first in years and was launched at its inaugural oil and gas conference in capital Dili in October, and is set to close this October.

Companies can enter for pre-qualification now and the winners are announced next year.

Energy News understands one company which already has assets in the nation has made an offer.

Data available is reprocessed 2D seismic and other work by TGS and CGG.

Given the power outages in the nation, the data room is kept on a server in London and companies which register via the ANPM's website will have 24 hour access. There is no limit to the amount of staff members one company can sign up to look over the data but all has been water marked and inbuilt software prevents screengrabs.

An airborne gravity survey has also been completed.

Source: Energy News Bulletin

Read more here

Santos agrees to sell a 25% interest in Darwin LNG and BayuUndan to SK E&S

Sonia Harvey — Thu, 12 Mar 2020 06:27:05 GMT

Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million with effect from 1 October 2019 with customary adjustments on completion.[1] Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 October 2019.

The sale is conditional on completion by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio as announced on 14 October 2019, third-party consents, regulatory approvals and a final investment decision on Barossa.

SK E&S already has a 37.5% interest in the Barossa project to backfill Darwin LNG. Santos’ sale of interests in Darwin LNG and Bayu-Undan to SK E&S advances partner alignment for the development of Barossa, which remains a key priority for both companies.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the agreement with SK E&S builds partner alignment and is another significant step towards bringing Barossa gas into production through the Darwin LNG facilities.

“We are delighted to have agreed terms with SK E&S to acquire interests in Darwin LNG and Bayu-Undan and look forward to continuing and building on the long-term relationship between our two companies.”

“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures through discussions with Darwin LNG participants and others to acquire equity in Barossa. We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”

“Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions,” Mr Gallagher said.

As announced on 14 October 2019, Santos’ net funding requirement for the ConocoPhillips acquisition is expected to be approximately US$775-825 million, net of the proceeds realised from the sell-down to SK E&S and post the benefit of cash flows generated from the acquired business from the ConocoPhillips acquisition effective date of 1 January 2019 to completion with customary adjustments.

Santos’ pro-forma gearing on completion of both the ConocoPhillips acquisition and SK E&S sell-down is expected to be approximately 33.5% (approximately 31% pre-AASB 16 lease liabilities) before any cash generated from the sell-down of equity in Barossa.

Credit Suisse (Australia) Limited and J.B. North & Co. are acting as financial advisers to Santos and Allens is acting as legal adviser to Santos.

[1] Santos will acquire the 25% interest in Darwin LNG and Bayu-Undan to be sold to SK E&S under the ConocoPhillips acquisition which has an effective date of 1 January 2019. Santos will have the benefit of cashflows from the 25% interests until 1 October 2019 being the effective date for the sale to SK E&S.

Source: Santos

Empire picks up pace in Beetaloo

Sonia Harvey — Tue, 10 Mar 2020 06:32:58 GMT

AUSTRALIAN explorer Empire Energy has received approval from the Northern Territory government to drill its Carpentaria-1 exploration well in the Beetaloo Basin.

The company is now finalising a well design and looking to contract a drill rig and service providers for the project located in onshore exploration permit EP187.

Carpentaria-1 is a vertical well scheduled to spud in the dry season this year. It will be drilled to a depth of approximately 2900 metres.

While Empire is yet to make a final investment decision on the big budget well, the company is optimistic about its future plans and is working closely with Brisbane-based engineering consultant InGuage Energy on well design.

InGuage and Empire have designed the well to include an extensive evaluation program consisting of coring which with give valuable insight into the geology of the target formations.

This data would then form the basis of the next phase work program and recoverable volumes of oil, gas and liquids.

Just over a month ago, Empire confirmed an extension of its permit in the Beetaloo Sub-basin giving the explorer confidence of a future oil and gas discovery.

Empire shot 2D seismic data across its acreage which confirmed two major shale targets, Velkerri and Kyalla, extending to the north of Santos' big budget Tamburini-1 appraisal well.

The Velkerri Shale sits around 2200m below surface and is estimated to be around 600m thick.

The shallower Kyalla shale is located at a depth of 1200m.

Both the Velkerri and Kyalla shales have attracted the attention of big plays including Origin Energy and Santos, which consider the underexplored region to be extremely commercial. In total Empire holds 14.5 million acres across the McArthur and Beetaloo Sub-basins.

Source: Energy News Bulletin

Read more here

Member benefit: H on Mitchell Apartments

Sonia Harvey — Tue, 03 Mar 2020 04:15:36 GMT

Thanks to Liz Wilsen from Halikos Hospitality group who would also like to extend an offer to our Energy Club NT Members.

H on Mitchell Apartments

Offer one:

1 Bedroom Apartment- Full facilities + Balcony

Rate: $149.00 per night- inclusions Hot breakfast for two people/Undercover secure carparking/WIFI/Late checkout until 2 pm .

Offer two:

2 Bedroom Apartments – Full Faculties + Balcony

Rate Per night $ 189.00- inclusions Hot breakfast for two people/Undercover secure carparking/WIFI/Late checkout until 2 pm

To redeem these rates the bookings must be made directly using the contact details below:

Email: bookings@hhotels.com.au

PH 1300 6888 72

All offers are valid from 1 March to 1 May 2020. Please ensure you provide proof of membership to access these offers

Energy Club NT exclusive member benefits from Wharf One Food & Wine!

Sonia Harvey — Tue, 03 Mar 2020 04:13:49 GMT

2020 Energy Club NT Member Benefits

Throughout 2020, Energy Club NT will seek to work with local businesses to promote opportunities and member benefits to our extensive network.

It's exciting to announce our new local business partnership with Wharf One Food & Wine down at the Darwin Waterfront. Wharf One will be providing a significant contribution of prizes and vouchers to our very popular social events through out the year and also monthly specials for our members to use for business and pleasure.

Wharf One team have been working hard to transform their venue to provide a great spot for casual drinks, various dining options to share or a la carte and corporate events with an unbeatable view on the water providing a fantastic atmosphere to relax.

Thanks to Wharf One for supporting Energy Club NT and our members throughout 2020 with our first member benefit offers below and plenty more to come!

Download the Energy Club NT Member App via WildApricot from the app store for iphone or android now!

On the membership app you can log in to the members vault using your email and also:

Access a member card to receive member benefits - show this when using the member benefits provided by our partners
View upcoming events
View you registration history
Find other members and contact them
Update your details

If you don't have the app on your device, show your members badge to access the member benefits from our partners.

Wharf One Offer One:

Not Hungry? just come down and relax by the water and enjoy an icy cold beer, wine or cocktail. Enjoy our air conditioned bar area or on the Terrace overlooking Stokes Hill Wharf, it’s the perfect location to bring your work colleagues, family or friends for a drink or two. Share plates and platters available.

Energy Club NT members receive 10% discount on beverages.

Must mention Energy Club when booking to redeem.

Wharf One Offer Two:

Look no further, we have the perfect function space for your next Event. Wharf One Food & Wine blends contemporary indoor and alfresco function spaces with culinary excellence and friendly service.

From groups of ten up to 1000, we have spaces suitable for all types of functions, meetings, seminars, networking, breakfast, lunch and dinner functions.

No venue hire fees, internal PA system and Big Screen Television complementary.

Energy Club NT members receive a corporate booking special: $50pp

Canapes and 2 hour beverage package, plus a $50 door prize to give away at the event.

All offers are valid from 1 March to 1 May 2020. Please ensure you provide proof of membership to access these offers

Get on down and support Wharf One Food & Wine and take advantage of our exclusive new member benefits from our new local business partner. www.wharfone.com.au

Shell exploring world's largest green hydrogen project

Sonia Harvey — Tue, 03 Mar 2020 01:27:17 GMT

Oil major joins a feasibility study that could lead to gigawatts of Dutch offshore wind being built purely for the manufacture of green hydrogen.

Oil major Shell has started feasibility work on what would be the largest green hydrogen project in the world.

The plans would see 3 to 4 gigawatts of offshore wind capacity established in the North Sea by 2030 purely for the manufacture of green hydrogen. Electrolyzers will be based in Eemshaven, along the northern coast of the Netherlands, and potentially offshore as well.

The project could be expanded to 10 gigawatts of offshore wind by 2040 dedicated to green hydrogen production.

Shell Netherlands, Dutch gas grid operator Gasunie and the port of Groningen are the founding partners of the NortH2 project, with the trio looking for others to join the consortium during the one-year feasibility study. They hope to develop a “European Hydrogen Valley” cluster.

Gasunie will develop the network infrastructure required for the storage and distribution of hydrogen.

“This project offers opportunities throughout the entire hydrogen chain,” said Marjan van Loon, president-director of Shell Netherlands, in a statement.

“In order to realize this project, we will need several new partners," van Loon said. "Together we will have to pioneer and innovate to bring together all the available knowledge and skills that are required. The energy transition calls for guts, boldness and action."

Read more here

Santos announces FID on major project

Sonia Harvey — Mon, 02 Mar 2020 03:08:38 GMT

AUSTRALIA’s second-largest gas producer, Santos (52.5%), and joint venture partner Inpex (47.5%) have made a final investment decision on the Van Gogh Phase Two project.

Santos said this morning its decision to go ahead with the second phase would involve extensive infill drilling to maximise field production, access additional reserves and lower unit production costs.

The Van Gogh field is one of three subsea oil field developments located in the Exmouth Basin, offshore Western Australia, which tie into the Ningaloo Vision FPSO.

Santos hit first oil from the Van Gogh infill project in January last year.

Under its phase two development plans Santos will drill three new horizontal production wells which will then be tied back to the Ningaloo Vision.

First oil from the second phase is targeted for late 2021.

Santos contracted the Valaris MS1 drilling rig for the project from early next year.

"It's little more than a year since the start-up of the Phase One, so I'm delighted to see FID being advanced on Phase Two in such a short timeframe," Santos CEO Kevin Gallagher said.

"Phase One proved to be a very successful project, with higher reserves delivered for lower cost, the value of which was enhanced by a strong premium to Brent realised for this crude."

Earlier this month the Santos noted it had been earning up to $30 above the Brent benchmark price for oil from the Van Gogh project. This was due to high demand from Asian refiners as the International Maritime Organisation implemented new laws enforcing a drop in sulfur content in shipping fuel.

Source: Energy News Bulletin

Read more here

Hydrogen hub for Gladstone

Sonia Harvey — Thu, 27 Feb 2020 03:10:56 GMT

QUEENSLAND’s Gladstone hasn’t been left entirely out in the cold after Labor’s May federal election loss, with the announcement today that a $4.2 million gas injection facility will be built to send hydrogen into the city’s gas network as part of the state’s $15 million Hydrogen Industry Development Fund.

Labor had promised a total of $1.14 billion on hydrogen development with the Queensland town to become a hub based on its LNG experience with an initial investment of $3 million

"Due to existing LNG infrastructure and a proof of concept Hydrogen Plant, Gladstone has enormous potential as an export hub for hydrogen," it said.

Today Queensland premier Annastacia Palaszczuk said the town will become the first entire city in Australia to use a blend of natural gas and hydrogen. Build will begin in November and the park will produce 20 kilos of hydrogen a day using certified green power from the local power grid and will be blended into the gas network at a level of 10%.

Australia's chief scientist Dr Alan Finkel has suggested 10% is a fair rate for initial blending but after when practicable the networks should scale straight up to 100% rather than incrementally.

The facility will include a 175 kilowatt Polymer Electrolyte Membrane electrolyser, water demineralisation system and process cooling equipment. As the facility modular it can be re scaled-up in the future to produce volumes beyond Gladstone's needs, for potential wider domestic and even export markets.

"Using renewable hydrogen, Australian Gas Networks (AGN) will trial the blended hydrogen gas with a view to converting Gladstone's network to hydrogen in the future," the premier said.

The Australian Gas Infrastructure Group's subsidiary Australian Gas Networks received $1.7 million via the fund to build the blending facility.

"This project will be the first in Australia to blend renewable hydrogen into a gas network with residential, commercial and industrial customers," state development minister Cameron Dick said.

"This project supports Gladstone's vision to be a key hub for Queensland's domestic and hydrogen export industry, just as it is for natural gas today," AGN CEO Ben Wilson said.

Source: Energy News Bulletin

Read more here

Beetaloo Kyalla sidetrack complete

Sonia Harvey — Mon, 24 Feb 2020 07:50:34 GMT

FALCON Oil & Gas has reported successful drilling of the Kyalla 117 N2-1H ST2 well in the Northern Territory’s Beetaloo Sub-basin.

The Irish company shares the well with operator Origin Energy (70%) and said late last week it had been drilled to total measured depth of 3,809 metres including a 1579m lateral section in the Lower Kyalla Formation.

It said preparation work, which will include drilling water impact monitoring bores as required by the Territory's Code of Practice, will begin next month ahead of the next stage of operations.

The JV will continue its in-depth shale evaluation of the technical data gathered from the conventional cores, sidewall cores and extensive wireline logging to build an understanding of the Kyalla Formation.

"We are delighted to have successfully completed the Kyalla horizontal well section and we now look forward to the next phase of operations with the fracture stimulation of Kyalla 117 N2-1H ST2," CEO Phillip O'Quigley said.

"We will continue to update the market as results become available."

In early December Falcon said vertical drilling was completed to a depth of 1800m.

Initial evaluation of the vertical section found three source rock reservoir sections identified within the Kyalla Shale Formation, with a thickness measuring almost 900m.

The three sections are known as the Lower, Middle and Upper Kyalla reservoirs. Gross thickness of each interval is between 75m-125m.

According Origin all three sections exhibited "elevated gas shows with relatively high C3, C4, and C5".

Source: Energy News Bulletin

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Yara Pilbara gets ARENA funding for green hydrogen study

Sonia Harvey — Fri, 21 Feb 2020 07:48:26 GMT

THE Australian Renewable Energy Agency has committed just under A$1 million to Yara Pilbara Fertlisers to support a feasibility study to produce renewable hydrogen and ammonia.

The study, conducted by Yara in collaboration with Engie, will look into creating hydrogen using electrolysis via solar PV at an industrial scale at Yara's existing ammonia facility in the Pilbara.

The renewable hydrogen produced is expected to displace 30,000 tonners per year of hydrogen currently created from fossil fuels, according to ARENA.

The blended hydrogen will then be converted to ammonia with a lower carbon footprint and sold for further processing into domestic and international markets.

The study will also investigate using seawater for electrolysis.

Yara hopes in the long term it will be able to produce all of its hydrogen and ammonia with renewables and hopes the study will be the first step on achieving commercial-scale production for export.

"Yara's project will offer great insight into how Australia's current ammonia producers can transition away from the use of fossil fuels towards renewable alternatives for producing hydrogen while continuing to leverage the substantial export capabilities that those companies have already established," ARENA CEO Darren Miller said.

"ARENA's support will assist in completing the feasibility study so that we can fully understand the opportunity for generating renewable hydrogen for use in our Pilbara facilities," Yara International executive vice president Production Tove Andersaid said.

ARENA has committed roughly $50 million toward hydrogen initiatives so far, spread between research and development projects and feasibility and pilot projects.

Source: Energy News Bulletin

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Eni extends Blacktip contracts with UPS

Sonia Harvey — Fri, 21 Feb 2020 07:37:12 GMT

UPSTREAM Production Services has seen its maintenance service contract with Italy’s Eni for its Blacktip gas field and Yelcherr gas plant extended by two years.

UPS has held the contract for three years for the platform in the Bonaparte Basin in the Timor Sea and gas plant near Darwin.

The scope of services includes the administration and execution of maintenance activities and associated support in relation to the unmanned Blacktip wellhead platform and onshore Yelcherr gas plant for domestic use.

"Upstream has a well-established track record in the supply of safe and efficient operations and maintenance services in Australia," managing director Geoff Jones aid.

"We are excited to have been given the opportunity to continue to support Eni Australia on this regionally significant project in the Northern Territory."

Source: Energy News Bulletin

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Lakehouse backs Timor Resources with US$30M

Sonia Harvey — Thu, 20 Feb 2020 07:44:53 GMT

TIMOR Resources has secured a US$30 million finance facility via a convertible note structure from Lakehouse Group to progress its onshore drilling plans for Timor-Leste’s first onshore well in 44 years.

Timor Resources, whose parent company is engineering firm Nepean, plans a 10 well campaign to run for 426 days, with five wells this year in one permit it operates under a production sharing contract arrangement with the Dili government and five more in its other permit in early 2021.

The first spuds on the first of May.

Wells Karau, Kumbilli, Laisaipi, Lafaek and Raiketin will be drilled in Permit A.

Eastern Drilling has the drill contract and will use a 1000 Loadcraft rig, made in the US.

Weatherford is providing the wireline, and explosives, along with other subcontractors from Indonesia coming onshore Timor-Leste for the first time

The company will free carry national oiler Timor Gap for its 50% share of the full exploration costs over four years valued at US$55 million, and if successful will be seeking field development finance after the drill campaign, possibly again looking to Lakehouse which has over US$1 billion in funds under management.

The company has two onshore permits in the south close to Suai where the nation plans to eventually develop an LNG export terminal to commercialise gas from its Greater Sunrise fields.

The unnamed drill rig is currently en-route from the US with an expected arrival date of March. Once onshore, rig training for the 45-strong Timorese workforce will begin.

"Timor Resources is very optimistic of an oil discovery. Any drilling in the new democratic nation of Timor-Leste will be a country-first," it said today.

"All historical drilling was completed before any seismic was undertaken. There are two historical wells that had oil discoveries in the permit but were not developed for geopolitical reasons."

Source: Energy News Bulletin

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Santos backs CCS

Sonia Harvey — Thu, 20 Feb 2020 07:41:47 GMT

SANTOS is lobbying all levels of government for its carbon capture and storage pilot program in the Cooper Basin that would eventually see 1.7 million tonnes of CO2 injected underground each year, from an initial 300,000t during phase one.

It also released its third climate change report which says the oiler has "a long term aspiration of achieving net-zero emissions by 2050" and which offered more detail and colour on its CCS plans.

Santos managing director Kevin Gallagher said carbon capture is "crucial technology for achieving the world's climate goals… it's a large scale permanent abatement solution".

There are currently 40 million tonnes per annum of CCS projects in operation globally.

Australia could be a world leader in CCS and hydrogen production - for which CCS is a necessity if it is to be made from methane or coal - provided policy settings are favourable.

Santos is planning a front-end engineering and design entry mid-year for an end-of-year final investment decision for phase one of its planned CCS project.

During a conference call after its full-year earnings were released Gallagher, now a CCS convert, said as the cost of carbon goes up the costs of its carbon sequestration program will go down.

"We're working hard with all levels of government to encourage the accreditation of sequestration projects for carbon credits in Australia," he said.

Santos' climate change report, which leans heavily on International Energy Agency data, said its emissions are in line with all three scenarios from the agency's latest climate report, suggests a glowing future for Aussie CCS, provided support is offered.

Its report states "government policy in the form of tradeable credits, financing vehicles and investment incentives will be needed".

With this support in place the Cooper and Eromanga basins have potential to store over 20MMtpa of CO2 for 50 years and could also capture emission from power generation, steel, cement and chemicals, Santos said.

Overall "Australia has an estimated storage capacity of enable injection at a rate of 300MMtpa for at least 100 years," it said.

The Cooper Basin is ideal given the depleted reservoirs and Santos' long history of working there. It has already drilled two wells to test the project.

Source: Energy News Bulletin

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Prelude offline: Shell confirms

Sonia Harvey — Tue, 18 Feb 2020 07:39:06 GMT

SHELL confirmed to Energy News this afternoon its floating LNG vessel the Prelude is out of action but would not give a date for when production would restart.

"Work continues to restore full operations on Prelude. Our focus remains on a facility that is safe, robust and reliable and we are working to restart production with that in mind," an email said.

The offshore regulator previously said to this publication that "Shell has advised that the facility will remain shut-down for at least three weeks from last Wednesday, 12 February".

The National Offshore Petroleum Safety and Environmental Management Authority issued Shell a safety notice January 22 but did not shut the vessel down. Shell took the decision in early February and told Energy News then it was unrelated to the notice.

Mechanincal issues and power shutdowns apparently drove the production halt.

Energy News understands half the crew remain stood down with only 180 currently on the vessel.

Source: Energy News Bulletin

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Exciting exploration opportunities as AGES program is released

Sonia Harvey — Thu, 06 Feb 2020 01:37:15 GMT

From Minister Kirby's office

The Territory’s exploration sector is experiencing strong growth in exploration activity for commodities such as gold, zinc, copper and lithium.

The upcoming Annual Geoscience Exploration Seminar (AGES) conference provides existing and potential explorers and friends of the industry an opportunity to come together and discuss the latest discoveries and future opportunities for the sector.

AGES is the Territory’s premier mineral and petroleum exploration event held annually, that regularly attracts over 200 delegates.

The 2020 conference is a Territory Government flagship event, highlighting the latest geological results from the Northern Territory Geological Survey’s (NTGS) programs under the Resourcing the Territory Labor Governments initiative.

Celebrating its 21st anniversary in 2020, key program highlights include:

The first release of data from the new 840 km Barkly seismic survey acquired in collaboration with Geoscience Australia;
new data on the age, structure and correlations of the South Nicholson Basin;
The interpretation of the NTGS Tanami airborne magnetic survey; and
insights into the undercover copper-gold and base metal mineral potential of the ‘East Tennant’ region in the Barkly Tableland and the Rover field SW of Tennant Creek.

To register to attend, or to view the complete conference program for the 2020 Annual Geoscience Exploration Seminar, visit the AGES website.

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

“The Territory Labor Government knows that jobs in regional communities are critical to Territorians, and a healthy exploration sector can play a key role in supporting regional economies in centres such as Tennant Creek and Alice Springs.

“The growth in exploration activity in the Territory proves that the resources sector has an exciting future, a future which the Territory Labor Government supports through the sustainable development of the resources sector and delivering jobs for locals.

“This year attendees can expect to hear about the Territory Labor Government’s NT Geological Survey’s programs under the Resourcing the Territory initiative which is a crucial part of exploration and production success in the minerals sector in the NT.”

Media Contact: Tom Ryan (0436 951 084)

Prelude shutdown

Sonia Harvey — Wed, 05 Feb 2020 02:01:23 GMT

OPERATION of the world’s largest offshore facility, Shell’s embattled Prelude floating LNG vessel, has descended into chaos with back up power generation failing, cardboard potties issued to replace regular toilet facilities and a fleet of helicopters called in to reduce crew numbers.

Only last week Shell chief executive Ben van Buerden told analysts the Prelude was evidence of how new assets would improve the gas giant's cash flow in 2020.

"Once we reach steady-state operations, we expect one carrier a week to offload LNG, LPG or condensate," he said.

A week later achieving consistent nameplate output from perhaps the most complex offshore facility ever built looks some time off.

Prelude has had consistent problems with its steam-driven power generation facility and on Sunday experienced another electrical trip. This time the backup diesel generators failed to power up which "impacted certain amenities onboard" according to a Shell spokesperson.

This impact included the toilets. Temporary toilets were assembled on every level of the Prelude's living quarters and instructions issued to crew: "People are to defecate into cardboard bedpans and place the pan in a plastic bag and seal it securely." Crew with lesser needs were allowed to continue to urinate in "toilets that are not full."

Otherwise, bottles and buckets were recommended.

Tuesday's crew newsletter seen by Energy News that detailed the new sanitary arrangements also advised of the arrival of five helicopters that morning to take crew off to reduce the total number of people on board.

Shell use Sikorsky S-92 helicopters from CHC Helicopter to service the Prelude, each with the ability to ferry 19 passengers. It is understood that 70 crew were taken off.

The Shell spokesperson said production had been suspended and work was underway to restore full operations and the issues with crew amenities were being resolved.

"We have made the proactive decision to temporarily reduce the number of people on board," he said.

Source: Energy News Bulletin

Read more here

NOGA's Northern Endeavour now crewless

Sonia Harvey — Wed, 05 Feb 2020 01:57:21 GMT

THE flagship vessel of troubled Northern Oil and Gas Australia is now sitting unmanned in the Timor Sea after the last of its crew was taken off over the weekend, the day after a creditors’ meeting to consider if the company should be liquidated was delayed.

A spokesperson from the Commonwealth regulator, the National Offshore Petroleum Safety and Environmental Management Authority, told Energy News de-staffing the Northern Endeavour floating storage production and offloading vessel was allowed under the vessel's approved safety case and the move had reduced immediate safety risks to zero.

"The facility is now unmanned, in ‘lighthouse' mode, with navigational aids operational, the wells suspended, and other controls being applied," the spokesperson said.

"While the facility is not producing and with the wells suspended, any immediate environmental risks are reduced."

The FPSO had been run with a small skeleton crew since production was shut in last year.

NOPSEMA's spokesperson said crew removal may occur for maintenance reasons, to avoid cyclone disturbance in the area, or for other emergency management reasons.

"For cyclone avoidance, facilities typically de-man for the period that is necessary for weather conditions to subside and facility crew to be safely transported to the facility," he said.

For other reasons, such as this case, the spokesperson said the period would vary and was determined by the operator in accordance with the safety case.

Source: Energy News Bulletin

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Australia's man in Seoul pushes hydrogen potential

Sonia Harvey — Mon, 03 Feb 2020 01:50:49 GMT

AUSTRALIA’S trade relations with one of North Asia’s powerhouse economies, South Korea, are often forgotten in favour of China, Japan and even Indonesia, especially after 2019’s hard won bilateral free trade agreement.

However until recently the nation was the Australia's second-largest LNG export market and is now third, while Australian exports are projected to rise in the mid-term as Seoul plans to retire more coal-fired power.

Now, Australia's ambassador to South Korea James Choi believes hydrogen cooperation is the way forward, seeing synergies with the LNG export industry much the same way Japan is looking to leverage its decades of trade ties as part of its own long term hydrogen economy plans.

Earlier this year now-departed resources minister Matt Canavan signed a cooperative agreement with his Japanese counterpart to work more closely on developing a hydrogen economy working on both R&D and multilateral legislation and cooperative efforts.

However such cooperation doesn't yet exist between Australia and South Korea but Australia's National Hydrogen Strategy released in late 2019 is bullish on the potential for Australia to make billions supplying large Asian economies.

"A cautiously optimistic scenario could see an Australian hydrogen industry generate about 7600 jobs and add about $11 billion a year in additional GDP by 2050 If global markets develop faster, it could mean another ten thousand jobs and at least $26 billion a year in GDP," a preface to the strategy said.

"Australia's got abundant gas and renewable energy. … I see hydrogen as the next phase of Australia's very important energy partnership with the Republic of Korea," Choi told the Korea Herald this week.

Source: Energy News Bulletin

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PM's NSW energy deal not all just gas

Sonia Harvey — Mon, 03 Feb 2020 01:46:30 GMT

WHILE much of the attention last week was focussed on the gas part of Scott Morrison’s A$2 billion energy deal with New South Wales, parts of the agreement had a much greener tinge, outlining the underwriting of interconnectors between the states and the establishment of a pilot renewable energy zone.

The federal government, according to last week's statement by the PM, will underwrite the HumeLink and Queensland-NSW interconnectors to strengthen grid reliability, one of the key priorities listed by the Australian Electrical Market Operator's analysis on the grid.

The $2 billion will also include NSW-based emissions reductions initiatives utilising $960 million in federal funding, both being divvied out into a mix of grants and loans, matched by just over $1 billion of direct funding from NSW.

"Our agreement with the Commonwealth today will ensure we continue to strengthen and diversify our energy sector here in New South Wales - securing traditional energy sources whilst growing renewable energy investment across the state," NSW premier Gladys Berejiklian said.

The deal will also provide financial support for the establishment of the nation's first pilot renewable energy zone in the Central West for large-scale renewable projects.

Source: Energy News Bulletin

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Kyalla horizontal drilling begins in Beetaloo

Sonia Harvey — Thu, 30 Jan 2020 23:23:10 GMT

FALCON Oil & Gas said yesterday sidetrack drilling has commenced at the new horizontal production hole section of the Kyalla 117-N2 well in the Beetaloo Sub-basin it shares with operator Origin Energy (70%).

The environmental management plan for both drilling, fraccing and testing the wells was approved by the Northern Territory government in August last year.

It is the second horizontal well following Amungee NW1-H in 2016 which was completed just before the moratorium was introduced in the Top End several years ago.

In early December Falcon vertical drilling was completed to a depth of 1,800m.

Initial evaluation of the vertical section found three source rock reservoir sections identified within the Kyalla Shale Formation, with a thickness measuring almost 900m.

The three sections are known as the Lower, Middle and Upper Kyalla reservoirs. Gross thickness of each interval is between 75m-125m.

According Origin all three sections exhibited "elevated gas shows with relatively high C3, C4, and C5".

Falcon said the new horizontal section will again target a later length of 1000-2000 metres within the Lower Kyalla shale at a depth of 1800m.

Drilling results to date have been encouraging and Falcon remains very optimistic about the potential of the Lower Kyalla shale play," Falcon CEO Phillip O'Quigley said.

Last year the company raised A$12.66 million through a placement to fund its share of the work program in Australia.

Source: Energy News Bulletin

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Inpex contracts Halliburton for major drilling program

Sonia Harvey — Wed, 29 Jan 2020 01:58:57 GMT

US oilfield contractor Halliburton announced overnight it had been awarded seven contracts for drilling and completion services for Ichthys Phase-2.

The massive Ichthys LNG project is operated by Japan's Inpex in the Browse Basin offshore northern Australia.

Inpex was granted approval from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to conduct its next phase drilling program in production license WA-50-L in December.

The development program is set to begin as soon as March this year and will take around three to five years to complete.

Inpex plans to drill and complete up to 15 development wells using a semi-submersible rig.

Under the contract, Halliburton will provide directional drilling, logging, coring and well completion services.

"We are excited to win this work and to collaborate with Inpex to deliver our extensive drilling and completion services in addition to our digital capabilities in the strategically significant Browse Basin," Halliburton Australasia vice president Jason Jeow said.

The campaign will target two reservoirs, Brewster and Plover.

According to Inpex's environmental management plan, the drilling campaign includes the potential for workovers and well intervention on existing and planned development wells.

Water depths at the proposed well locations range between 235 metres and 275m, the company said.

Inpex began the process of selecting its preferred contractors for the phase two development in January last year.

Maersk was awarded a significant US$300 million contract for the provision of its ultra-deepwater semi-submersible Maersk Deliverer rig.

McDermott International and Baker Hughes were awarded contracts to provide a joint URF and SPS EPCI solution for the upcoming campaign.

Fabrication of the subsea URF equipment will be carried out at McDermott's facility in Batam, Indonesia.

Source: Energy News Bulletin

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PM calls for end to onshore moratoria

Sonia Harvey — Wed, 29 Jan 2020 01:55:18 GMT

PRIME MINISTER Scott Morrison has announced that one of the solutions to climate change and emissions reductions in Australia is to unlock the gas supplies beneath the ground in the eastern states, suggesting more gas from Victoria and New South Wales will help the nation transition to renewables and meet its Paris commitments.

"We need to get the gas from under our feet. There is no credible energy transition plan for an economy like Australia, in particular, that does not involve the greater use of gas as an important transition fuel," he said.

The speech has, predictably, been championed by industry and lobby body APPEA and slammed by activists and others horrified at his pro-fossil fuel stance as the nation battles enormous bushfires across the east coast they see as linked to Australia's fossil fuel industry.

"There are plenty of other medium or long-term fuel arrangements and prospects, but they will not be commercially scalable available for at least a decade is our advice," Morrison said.

The head of the Australasian Centre for Corporate Responsibility Brynn O'Brien called Morrison's speech "sickening, chilling" in a tweet.

"It's important for Australia's oil and gas industry to be recognised for the positive role it is and can play in the broader energy and emissions reduction debate. Natural gas is the perfect complement to the growing use of renewables and will continue to be so for decades come," APPEA CEO Andrew McConville said.

Source: Energy News Bulletin

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Empire Energy - EP187 SEISMIC RESULTS AND 2020 EXPLORATION PROGRAM UPDATE

Sonia Harvey — Thu, 23 Jan 2020 03:43:24 GMT

Download the full media release from Empire Energy Group here.

Highlights

• New EP187 2D seismic processing and interpretation confirms that Empire holds a material Beetaloo SubBasin acreage position within its 100% owned and operated tenement

• Large EP187 area identified containing thick continuous Velkerri and Kyalla Shales, clearly undisturbed by faulting and adjoining EP161 where Santos’ Tanumbirini-1 is flowing gas after recent fracture stimulation

• Empire’s EP187 Velkerri and Kyalla Shales exist at shallower depths than adjoining blocks while maintaining equivalent thickness offering reduced drilling and development costs and increasing the potential for the presence of both gas and liquid hydrocarbons

• Kyalla Shale identified at greater depth and thickness than previously anticipated thereby opening up a new secondary exploration target in EP1871

• Well location de-risked ahead of drilling scheduled for mid-2020

Santos 2019 Fourth Quarter Activities Report

Sonia Harvey — Thu, 23 Jan 2020 01:35:00 GMT

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record annual production and revenues in 2019, and lower unit production costs, clearly demonstrating the effectiveness of our disciplined, cash generative operating model.

“The year was highlighted by highest ever free cash flow of more than $1.1 billion, record onshore drilling performance, lower unit production costs and significant progress on our diversified portfolio of growth projects.”

“The acquisition of ConocoPhillips’ natural gas assets in northern Australia and Timor-Leste announced in October is fully aligned with our growth strategy to build on existing infrastructure positions and delivers operatorship and control of strategic LNG infrastructure at Darwin.”

“Also in the Northern Territory, better than expected gas flow rates from the ongoing Tanumbirini-1 vertical well test are very encouraging and an important step in Santos’ appraisal of the significant resource potential of the McArthur Basin.”

“Natural gas is forecast to supply a quarter of the world’s total energy demand by 2040 and Santos, with its portfolio of long-life natural gas assets, is well positioned to benefit as we seek to deliver 120 mmboe of production by 2025.”

“We are also investing in projects to lower emissions and assessing the significant potential for carbon capture and storage in the Cooper Basin,” Mr Gallagher said.

Read more here.

AGES Conference Alice Springs - registration now open for 2020

Sonia Harvey — Thu, 23 Jan 2020 00:55:11 GMT

Energy Club NT are proud to be a supporting partner for the 2020 AGES Conference in Alice Spring 24-25 March with other sponsors Origin Energy, Empire Energy Group, Core Lithium Ltd and TLD Titeline Drilling. The AGES conference, organised by NT DPIR, has been successfully attracting significant stakeholders year on year profiling prospective opportunities for minerals and oil & gas explorers. This is an exciting time to be exploring the Northern Territory and a great conference to be updated on the development of our resources. Be sure to come and grab a coffee at the Energy Club NT coffee cart throughout the conference! Registration open online.

http://www.cvent.com/events/ages-2020/event-summary-7253ba31962b4387b81ee47a3a81e3f4.aspx?RefID=Event%20Summary

Total turns to largescale solar in Qatar

Sonia Harvey — Tue, 21 Jan 2020 06:43:02 GMT

TOTAL will develop Qatar’s first large scale solar farm 80 kilometres south of capital Doha, in a major move for the multinational oil and gas company as it turns its attention to renewable opportunities in the Middle East.

The Arabian country is the largest LNG exporter after Australia but is now like regional peers harnessing the power of its fierce desert sun to produce domestic power too.

The project, named Al Kharsaah Solar after the town it will be built near, is estimated to cost 1.7 billion riyals (A$728 million).

Partnering with Japan's Marubeni Corporation, Total will build the 800-megawatt solar plant and have it fully connected to the Qatari grid by next year.

Total will have a 49% stake in the project, and Marubeni will hold the rest.

This is a major move for the company which has not embarked on a renewable venture of this size, nor in the region, before. Up until now, its presence in Qatar has largely been in upstream oil and gas, and petroleum refining.

Total has been present in Qatar since the mid-1930s and currently holds a 20% stake in the upstream Qatargas business as well as a 40% interest in the massive Al-Khalij offshore oilfield. The company's production last financial year averaged 211,000 barrels of oil equivalent per day.

However, this is all set to change as it looks to a future solar and hydrogen economy in the country. In a statement overnight Total said it was looking to renewable energy as part of a broader strategy in the energy transition.

Source: Energy News Bulletin

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Industry must work together to cut emissions: IEA

Sonia Harvey — Tue, 21 Jan 2020 06:38:50 GMT

OIL and gas must adjust to new conditions and begin to seriously invest more in emissions-free technology and longer term make the transition from ‘oil and gas’ to ‘energy’ if companies hope to survive, a report from the International Energy Agency released at the World Economic Forum today says.

Most important to the transition will be companies cutting emissions from their own operations.

Worldwide oil and gas production makes up 15% of energy-related emissions.

Combatting fugitive methane leaks and ceasing flaring and venting will be important, as will electrification of some processes at LNG plants.

"Minimising emissions from core oil and gas operations should be a first-order priority for all," the report said.

"Reducing methane leaks to the atmosphere is the single most important and cost-effective way for the industry to bring down these emissions."

In US shale basins the US Energy Information Administration suggests flaring and venting of gas associated with oil production that does not have a path to market is being flared and vented at a rate of up to 1.1 billion cubic feet per day.

In the middle of last year Rystad Energy released research that found flaring and venting across the Permian Basin alone hit 650 million cubic feet per day.

But overall the transition will be easier for some than others. Many national oil companies will struggle to adapt.

The attention is usually focussed on the world's seven majors which account for 12% of oil and gas reserves, 15% of production and 10% of "estimated" emissions from industry operations. However, NOCs account for half the world's production and more reserves again.

"There are some high-performing NOCs, but many are poorly positioned to adapt to changes in global energy dynamics," it said.

Economies reliant on oil money will also struggle.

Across the entire industry investment in non-core areas is around 1% of capital and "there are few signs of a major change in company investment spending".

That average rises among what the IEA calls ‘leading individual companies' which may spend as much as 5%, largely on solar then wind. Others have bought battery tech, or EV charging tech and some are moving to electricity distribution (think Shell's plans for ‘molecules and electrons').

Source: Energy News Bulletin

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Protests against Woodside and Chevron are just getting started: Activists

Sonia Harvey — Mon, 20 Jan 2020 06:40:51 GMT

THE summer bushfires have done nothing but stoke the flames of activist and environmental groups Extinction Rebellion, Lock the Gate Alliance, The Socialist Alternative, and Frack Free WA, with campaigners vowing to continue to oppose oil and gas majors Chevron and Woodside in Western Australia.

This afternoon a large number of activists blocked off entrances to the QV1 building which houses Chevron and ConocoPhillips in Perth's business district.

The activist groups, dressed as Grim Reapers with scythes and Chevron badges locked down QV1 for approximately one hour before police intervened.

A spokesperson from Extinction Rebellion told Energy News Chevron and Woodside were in "lock step… marching WA off the climate cliff edge."

More than 20 protesters were issued move on notices.

It comes after Woodside was targeted by protesters at the opening of the Perth Fringeworld Festival on Thursday.

Activists took over the stage at the formal opening of Fringe, one of the largest arts festivals in Australia, calling on the festival to dump Woodside as a major sponsor of the event.

The charity which runs Fringeworld, Artrage, said in its last annual report that corporate sponsorship of Fringe was worth A$6 million per annum.

Woodside has been a principle sponsor of the festival since 2012 and last year signed a three-year sponsorship agreement with Artrage which will finish in 2021.

Under the agreement Woodside was granted naming rights for The Woodside Pleasure Garden.

In a statement provided to Energy News today, Artrage CEO Sharon Burgess said the charity was not going to dump Woodside as a sponsor, saying without corporate sponsorship it would not be able to "present an annual platform for artists to perform and for the community to enjoy."

"Alongside supporting the Festival overall, the partnership with Woodside enables us to deliver a number of artist support initiatives together including regional touring of artists, the review platform Fringefeed.com.au, the Woodside Homegrown Heroes program that shines a light on our local artists and of course The Woodside Pleasure Garden, which is our biggest and best Fringe Hub," Burgess said.

Source: Energy News Bulletin

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BRIGHTER: ESCO Pacific and Shell partnership for renewables

Sonia Harvey — Mon, 20 Jan 2020 06:16:05 GMT

ESCO Pacific and Shell have announced today that they have formed a strategic partnership, combining ESCO Pacific’s solar development and asset management expertise together with Shell’s global scale and energy capabilities.

ESCO Pacific is a successful and experienced Australian focused utility scale solar developer, having delivered to market nearly 500MW of projects since 2017, with a further 350MW of solar assets under long term management.

Shell’s investment will enable ESCO Pacific to further accelerate development of its project pipeline as well as opening up significant opportunities with a wider range of corporate off-takers looking to procure renewable power. ESCO Pacific will continue to operate under its existing management and brand. The business will be expanding its project pipeline both organically and by acquisition, while continuing to deliver projects to market in the coming years. In addition ESCO Pacific
will be growing its asset management portfolio.

ESCO Pacific’s Founder and Managing Director Steve Rademaker said, “ESCO Pacific has been one of the fastest-growing independent solar developers in Australia. We’d like to build on that growth and continue our rapid scaling by leveraging the resources that the Shell investment makes available to us. This partnership is a testament to the success of our strategy, our business and our team”.

Shell Australia Country Chair, Zoe Yujnovich added, “…Shell’s investment in ESCO Pacific, coupled with the recent acquisition of ERM Power, supports a pathway for Shell to supply more and cleaner energy to utility, commercial and industrial customers in Australia.”

“This investment in ESCO Pacific brings us into the rapidly growing solar market in Australia,” said Marc van Gerven, Vice President, Onshore Renewable Power at Shell New Energies.

“With their proven track record of developing projects, we will accelerate the delivery of renewable electricity to utility, commercial and industrial customers.”

ESCO Pacific Chairman, Darryl Flukes said: “We’re excited by what this agreement means for our company’s ambitions. This partnership with Shell recognises the strong capabilities of the ESCO Pacific Team. We are delighted to partner with Shell.”

Source: Brighter

Energy Club NT discount codes available for AOG Conference in Perth

Sonia Harvey — Mon, 20 Jan 2020 00:57:10 GMT

Energy Club NT are proud to be a supporting partner for the Australasian Oil & Gas Exhibition & Conference again in 2020. The conference is free to register with some great networking events too. Members have access to 10% discount when booking for the networking events. Contact the office to find out more!

https://aogexpo.com.au/

Jadestone plans new drilling and workover campaign

Sonia Harvey — Thu, 16 Jan 2020 05:03:17 GMT

JADESTONE Energy, which operates the Montara, Skua, and Stag oilfields offshore Western Australia in Commonwealth waters, has revealed its new drilling and development plans for the second half of this year.

The company, based in Singapore and listed on the Toronto Stock Exchange and London Stock Exchange, recently applied to the national regulator, the National Offshore Petroleum Safety and Environmental Management Authority, to drill two development wells.

The first well, H6 will be drilled in the AC/L7 production permit on the Montara Field.

A second development well, Skua-12 will be drilled in the adjacent AC/L8 license on the Skua Field.

Jadestone also proposes to conduct workovers of the H3 and Skua-10 wells across the two respective permits.

First spud is expected in the second quarter of this year.

The total drilling and workover activities will likely take 150 days, however this is subject to weather conditions, drillrig availability and operational efficiency.

Drilling of the Montara H6 well is estimated to take 80 days and drilling of SKUA 12 is estimated to take 50 days.

The wells will be drilled from the existing unmanned wellhead platform on the Montara field.

The H3 and Skua 10 workover is estimated to take 20 days each.

Skua field is located approximately 20km from the Montara platform.

Babcock has been contracted to provide helicopter services.

Jadestone is yet to choose a jack-up rig contractor and confirm support vessel subcontractors.

Source: Energy News Bulletin

Read more here

NERA - Darwin Workshop - Hydrogen Industry Cluster - Register your interest now

Sonia Harvey — Mon, 13 Jan 2020 06:53:12 GMT

NERA to lead new hydrogen cluster, positioning Australia as a global force in emerging hydrogen economy

Australia can become a global hydrogen leader, creating world-class centres of excellence in hydrogen technology and research with the announcement of a new industry-led hydrogen cluster to be delivered by NERA (National Energy Resources Australia).

The Hydrogen Industry Cluster will drive crucial collaboration across the emerging hydrogen value chain, building the scale and capabilities of existing industry start-ups, scale-ups and SMEs and further leveraging and developing their technologies that will sustain a clean, innovative, competitive and safe hydrogen industry.

As a first step to establishing the cluster group, NERA will be holding a workshop in Darwin during February and are seeking attendance expressions of interest from interested SME’s, researchers, innovators and operators.

If you would like to be kept informed of workshop details and arrangements, please send your contact details (business name, name, position title, email address and mobile number) to;

Gavin Asikas

Manager Energy Industry Supply Chain (SA & NT)

M: +61 448 948 160

E gavin.asikas@nera.org.au

W nera.org.au

Australia and Japan progress hydrogen cooperation

Sonia Harvey — Mon, 13 Jan 2020 05:14:28 GMT

AUSTRALIA’s minister for natural resources Matt Canavan has signed a joint statement of cooperation with Japan’s Minister of Economy, Trade and Industry, Hiroshi Kajiyama on the development of hydrogen and fuel cells, paving the way for further work on developing a hydrogen export industry.

Japan has plans to build a domestic hydrogen economy to decarbonise and Australia is working to replicate the success of its LNG exports with a hydrogen export industry, while also exploring the gas for domestic use.

The two signed the statement during the Australia-Japan Ministerial Economic Dialogue in Melbourne last week.

"Australia is building a hydrogen production base to foster domestic growth and meet future export demand in Japan and the region," Canavan said.

The nine-point document outlines future cooperation and builds off both Australia's National Hydrogen Strategy of 2019 and the Tokyo Statement released during the 1st Hydrogen Energy Ministerial Meeting in Tokyo in October 2018 and the Global Action Agenda of the Tokyo Statement released during the 2nd Hydrogen Energy Ministerial Meeting in Tokyo in September 2019.

Australia finally released its National Hydrogen Strategy in November last year. Though it presents a clear way forward, notes each state's capabilities and projects and aims to develop hydrogen service ‘clusters' it has been criticized for its focus on fossil fuel generated hydrogen.

"Scenarios developed for the National Hydrogen Strategy indicate an Australian hydrogen industry could generate about 8,000 jobs and about $11 billion a year in GDP by 2050," a statement from the minister's office said this afternoon.

"The statement encourages Australia and Japan to exchange views on national hydrogen strategies and safety information as well as shape the global hydrogen market regulations," the government said today.

It will also encourage the two "to exchange views on national hydrogen strategies and safety information as well as shape the global hydrogen market regulations".

It also called the Hydrogen Energy Supply Chain project in Victoria "a cornerstone of the bilateral economic relationship and welcome the steady progress of the project towards establishing an international hydrogen supply chain."

The $500 million project, which has $100 million of funding from Australian government bodies both federal and state, aims to develop hydrogen from the La Trobe Valley's brown coal, sequestering the resulting carbon underground utilising the CarbonNet carbon capture and storage project then liquefying the resulting gas and transporting it via specialised ship to Japan.

Kawasaki, which is developing the project, launched the world's first bulk liquid hydrogen carrier the Susio Frontier in December, which will transport the new fuel to a terminal in Kobe, Japan, that is still under construction.

Source: Energy News Bulletin

Read more here.

Origin puts the spin on Native Titleholder consent

Sonia Harvey — Thu, 09 Jan 2020 03:08:25 GMT

Watch Origin's Beetaloo Exploration video here

ORIGIN Energy has responded to allegations it did not properly consult stakeholders in the Beetaloo Sub-basin by releasing a video on social media platforms with testimonies from various Native Title Holders.

Social license issues and community condemnation has plagued Origin since the Northern Territory Gunner government lifted a moratorium on fraccing following the extensive Pepper environmental review.

The video released by the company shows Native Titleholders apparently giving their blessing for Origin's plans due to new employment opportunities.

"Opportunity wise and workwise, I think it is good that the gas industry is looking for people like us in the middle of the sticks because we don't get much, you know, contracts out here," title holder Gordon Jackson said, quoted in a tweet from Origin.

The praise comes after Origin delivered a new football oval for the town of Elliott in the NT.

"There's not much opportunities, especially when you're a kid. We have a big dream but no opportunity to go places so your dreams and who you wanted to be dies then," Ben Ulamari said in an online video.

Ulamari said there were now more opportunities to have choices in life.

"We look after well sites in the Beetaloo Basin, so well checks all that sort of stuff. We also look after the airstrip."

Ulamari's sentiment is shared by fellow titleholder Pompey Raymond, who said when he was "born on the Beetaloo" his community had no school or money.

"[Gas development] is right for me. There's work for some of those young fellas," Raymond said.

Origin, which became operator of several exploration permits in the Beetaloo in 2014, said it would continue to work "constructively, transparently and in good faith," with Traditional Owners that held Native Title Holder status.

The company is required to provide its planned work programs a year in advance to the Northern Land Council and Native Title Holders to allow for community consultation.

According to Origin, the timing allows for consideration of sacred site avoidance and clearance surveys to be completed and certified by law.

Last year Origin and Falcon faced severe backlash from pastoralists and environmental campaign group Lock the Gate.

In November Lock the Gate and several pastoralists near Origin's operations condemned the Territory government for not passing land access agreement legislation which would require oil and gas explorers to reach an agreement with pastoralists before accessing leases.

The regime was supposed to be implemented before Origin spud its Kyalla well and included a series of minimum mandatory provisions on how pastoral leasers should be compensated for the impact exploration and production operations would have on their properties.

Origin also faced unprecedented pushback from minority activist shareholders at its annual meeting in October, such as the Australasian Centre for Corporate Responsibility.

It claimed Origin had not properly consulted key Native Title Holders, however their allegations were based on indigenous people from other areas of Northern Territory, not direct Native Title Holders.

Separately Bullwaddy Pastoral Company, which operates the Amungee Station near Daly Waters close to Origin's leases, took Origin to court over drilling plans arguing the joint venture had not conducted thorough consultation with stakeholders.

The case was withdrawn from the Supreme Court after a meeting between the two parties.

Origin (70%) and its Irish joint venture partner Falcon Oil & Gas (30%) recently hit gas at the Kyalla 117 N2 appraisal well, with initial evaluations of the vertical section of the well intersecting three source rock reservoir sections within the Kyalla Shale Formation with a thickness measuring almost 900 metres.

All three sections exhibited "elevated gas shows with relatively high C3, C4, and C5," according to the venture.

Source: Energy News Bulletin

Read more here

Contractors evacuate bushfire victims, oil majors open cheque books

Sonia Harvey — Tue, 07 Jan 2020 03:38:08 GMT

AUSTRALIA’s unprecedented bushfire disaster has seen the country’s upstream oil and gas industry mobilise by evacuating fire victims and making multi-million dollar donations.

The fires have devastated more than 12 million hectares on the east coast, destroying whole towns and killing 22 people including volunteer firefighters.

Last week the department of defense was called in to start evacuating locals in bushfire affected areas on the Gippsland coast of Victoria.

However, oil and gas contractors also played a crucial role in the evacuations before the military was deployed by Canberra.

The rig tender anchor handling vessel Far Saracen was released from a work program with ExxonMobil and deployed to provide provisions and relocate stranded citizens.

A police officer who helped the crew of the Far Saracen, Chris Nairey, wrote in a Facebook post that the workers aboard the Far Saracen "worked around the clock… looking after sick people, the elderly, infants, and even special-needs teenagers."

"They fed us. Gave us beds. Even made sure we had clean uniforms and underwear," he said.

"They did this all while supplying Mallacoota with food, water and diesel. They did all of this on top of running the ship."

Since New Year's Eve, ExxonMobil through its wholly-owned subsidiary Esso has worked continuously with emergency services responding to the East Gippsland fires.

"This has included providing two support vessels, the Far Saracen and the Far Senator, which helped provide food and water to the town of Mallacoota, as well as providing accommodation for community members with medical conditions and emergency response personnel," an ExxonMobil spokesperson told Energy News.

ExxonMobil also provided two of its helicopter fleet for firefighting services.

The upstream industry has also pledged more than A$4 million to help affected communities.

Source: Energy News Bulletin

Read more here

Project Atlas processing plant completed

Sonia Harvey — Thu, 05 Dec 2019 02:29:11 GMT

CONTRACTOR Valmec has achieved mechanical completion at Jemena’s Atlas gas compressor facility.

The 40 terajoule plant will process gas from Senex Energy's Project Atlas gas fields in the Surat Basin before piping it to the east coast domestic market.

In June last year, Senex and Jemena partnered to build the 40 terajoule gas compressor and pipeline to send gas from the Project Atlas processing facility to Wallumbilla Hub, marking the first domgas route to market.

Jemena completed the pipeline which connects the fields to the processing facility in October.

Valmec said on Saturday it expected to be fully demobilised from the site by the end of December, having achieved the last stage of construction activities.

"Commissioning by the Jemena team is well underway, ensuring gas from the facility can be delivered to major Queensland manufacturers, providing a major boost to the local economy," Valmec said.

Source: Energy News Bulletin

Read more here

Santos upgrades 2025 production target to 120 mmboe

Sonia Harvey — Tue, 03 Dec 2019 02:26:41 GMT

Santos today lifted its 2025 production target further to 120 million barrels of oil equivalent (mmboe), more than double 2018’s output.

The new target, up from 100 mmboe set in 2018, represents a cumulative annual growth rate in production of over 8% to 2025.

Speaking at the company’s Investor Day in Sydney, Santos Managing Director and Chief Executive Officer Kevin Gallagher said the successful execution of Santos’ Transform-Build-Grow strategy since 2016 has the company positioned for disciplined growth and sustainable shareholder returns.

“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle. Our 2019 forecast free cash flow breakeven oil price is now ~US$29 per barrel,” Mr Gallagher said.

“The recently announced acquisition of ConocoPhillips’ interests in northern Australia and Timor-Leste¹ will further reduce our breakeven oil price and deliver operating interests in long-life, low-cost conventional natural gas assets and strategic LNG infrastructure.”

“We are now positioned for disciplined growth leveraging existing infrastructure in all five of our core assets, which we believe will deliver 120 mmboe by 2025.”

This disciplined growth portfolio includes:

Barossa LNG – targeting FID around the end of Q1 2020
Dorado liquids – targeting FEED-entry Q2 2020
PNG LNG expansion – targeting FEED-entry in 2020
GLNG ramp-up to ~6.2 mtpa sales from 2020
Cooper Basin production growth.

Mr Gallagher said Santos was well positioned to fund growth out of operating cash flow and debt while maintaining gearing levels within the company’s target range through the major growth phase, with rapid de-gearing expected thereafter.

“Natural gas is forecast to supply a quarter of the world’s total energy demand by 2040. Through our Energy Solutions business, we are investing in projects to lower emissions and assessing the significant potential for carbon capture and storage in the Cooper Basin,” Mr Gallagher said.

¹Completion of the acquisition is expected in the first quarter of 2020 and is subject to third-party consents and regulatory approvals.

Guidance

Santos has narrowed 2019 production guidance to 74-76 mmboe (previous 73-77 mmboe) and sales volumes guidance to 93-95 mmboe (previous 90-97 mmboe).

2019 upstream unit production cost guidance is lowered to $7.25-7.50/boe (previous $7.25-7.75/boe). Capital expenditure is expected to be approximately $1 billion (previous $950 million to $1,050 million) including major growth.

Santos to centre offshore business in WA: Gallagher

Sonia Harvey — Tue, 03 Dec 2019 02:23:26 GMT

SANTOS won’t move headquarters from hometown Adelaide but will move its offshore division to Perth, according to managing director Kevin Gallagher at his company’s investor day in Sydney this morning.

Last week at the Resources Technology Showcase in Perth Western Australian premier Mark McGowan suggested "Santos could be Wantos" as he called for a series of companies including Santos and BHP to re-headquarter to the west's sunnier climes.

He suggested Sydney's beaches are hard to get to, Melbourne's not worth visiting, Brisbane's too humid and "don't get me started on Adelaide".

"Santos could become Wantos, you won't regret moving to WA you'll be right at the cutting edge," he said.

"I think it's a long term prospect. A lot of their operations are here," he told a later press conference.

McGowan suggested Santos could base "divisions of their operations (in Perth), I think it would be a wise move on their part and obviously I have mentioned that repeatedly to Mr Gallagher."

"We're not planning on moving our headquarters to Perth, (but) we're centring our offshore business there," Gallagher said today in response to a question about whether Santos' Perth headquarters could tower over Woodside.

Rather it will locate its onshore business in Queensland and midstream operations and headquarters would stay in South Australia, he said.

Source: Energy News Bulletin

Read more here

South Australia's first hydrogen plant under construction

Sonia Harvey — Mon, 02 Dec 2019 02:31:31 GMT

AUSTRALIAN Gas Infrastructure Group has officially started construction of South Australia’s first hydrogen production plant in South Adelaide.

The Hydrogen Park SA is an A$11.4 million small-scale facility consisting of a 1.25 megawatt electrolyser which splits water into oxygen and hydrogen gas.

AGIG said the facility would be operational next year, with hydrogen produced and blended into the local gas distribution network by the end of 2020.

Today AGIG chief executive Ben Wilson and South Australian energy minister Dan van Holst Pellekaan formally launched the construction start-up.

"This is a significant milestone in South Australia and for hydrogen in Australia," Wilson said.

"This will enable residents in parts of the Adelaide suburb of Mitchell Park, to become South Australia's first natural gas customers to receive a blended 5% renewable gas - a combination of natural gas and renewable hydrogen."

AGIG received A$4.9 million from the state government's Renewable Technology Fund to build and operate the project.

Valmec was named key project development partner for the facility in July.

Source: Energy News Bulletin

Read more here

Hydraulic fracturing Community Bulletin #29

Sonia Harvey — Fri, 29 Nov 2019 02:15:56 GMT

Community and Business Reference Group meet for the sixth time

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its sixth meeting in Darwin on 13 November 2019.

Established to provide a forum for government to seek advice and share information, the Reference Group received presentations and updates on the:

implementation of the Reserved Block Policy
role of the Aboriginal Areas Protection Authority
development of the NT Climate Response Strategy
detail of the SREBA framework
progress to support NT business to capture maximum benefit from onshore gas.

Members of the Reference Group sought clarification on a number of matters relating to the presentations which were taken on notice and will either be addressed out of session or at the next meeting in March 2020.

Ms Julie-Ann Stoll has resigned from her membership of the Reference Group. Members thanked her for her contribution and welcomed her replacement Mr Joe Martin-Jard as the representative of the Central Land Council.

For full details of the meeting and to read Communique 6 please click here.

Hydrogen industry 10 to 15 years away: Woodside

Sonia Harvey — Thu, 28 Nov 2019 02:20:47 GMT

FOR a man whose company has some impressive hydrogen plans Woodside Petroleum CEO Peter Coleman has some reservations about the future of ‘green’ or renewable hydrogen.

Speaking on a panel that included Chevon Corporation managing director Al Williams, Shell Australia chair Zoe Yujnovich and Australian Petroleum Production and Exploration Association CEO Andrew McConville Coleman pointed out some of the issues well known by scientists and engineers and often forgotten by politicians: it has a lower energy density than other fuels and tiny molecules prone to escape.

Last week the federal government released its hydrogen strategy with an aim to kickstart Australia's trade and use of the gas by 2030, taking a technology-neutral stance that still sees a place for fossil fuel-based hydrogen provided resulting carbon is captured. Political will at state and federal level is apparent, in a huge change from even two years ago but technical expertise still lags.

Pulling figures he used last week in Sydney at a press event on the sideline of Woodside's investor briefing day Coleman told the Resources Technology Showcase in Perth to create enough green hydrogen to equal the energy from just Pluto LNG's single train would be some 60 gigawatts.

That equates to a solar farm the size of greater Sydney.

"Multiply that out by all of the trains we have operating. We have to solve the problem in a different way."

Western Australian Premier Mark McGowan, also on the panel, has been an ardent supporter of development of a state hydrogen strategy but was genuinely surprised by the figures.

Source: Energy News Bulletin

Read more here

Hydraulic fracturing Community Bulletin #28

Sonia Harvey — Wed, 27 Nov 2019 02:17:50 GMT

Groundwater monitoring results at petroleum well sites in the Beetaloo Sub-basin released by Santos

The Scientific Inquiry into Hydraulic Fracturing in the Nothern Territory identified the need for a ground water monitoring program at each petroleum well site. The purpose of the program is to provide confidence that natural groundwater characteristics remain unaltered; or alternatively provide early detection of any contamination or altered hydrology that may occur as a result of petroleum activities. Monitoring results may also provide justification for further investigation or remedial action, if necessary.

Santos QNT Pty Ltd has submitted monitoring data for the Tanumbirini and Inacumba petroleum well sites on EP161 in the Beetaloo sub-basin, covering the period from December 2018 to October 2019.

This report fulfils the Code of Pratice: Onshore Petroleum Activities in the Northern Territory (the Code) (2019) requirement for 6 months of baseline monitoring of groundwater at a well site prior to undertaking hydraulic fracturing activities.

This was also a condition of Ministerial approval of the Santos McArthur Basin 2019-2020 Hydraulic Fracturing Program Environment Management Plan (EMP).

To comply with the Code, companies are required to submit groundwater monitoring data quarterly, with the Department of the Environment and Natural Resources committed to publishing the monitoring results from interest holders.

The Santos groundwater monitoring program consists of:

a Control Montoring Bore (CMB), which is located “upstream’’ and within 100m of each planned or existing petroleum well pad, screened across the Gum Ridge aquifer in compliance with the Code
an Impact Monitoring Bore, which is located 20m “downstream” of the location of each petroleum well.

These bores enable a comparison of the groundwater upstream and downstream of the petroleum well, to allow for an immediate identification of any variation in the groundwater that can be directly related to the petroleum activity.

The groundwater monitoring studies undertaken over the last 12 months at the Tanumbirini and Inacumba petroleum well sites operated by Santos identified very limited variation over the period, and no material changes in groundwater levels.

The variation observed was within the bounds of what we understand to be natural variation and will continue to be monitored.

Santos has started to hydraulically fracture Tanumbirini 1 and is looking to start drilling Tanumbirini 2 and Inacumba in 2020, so the results gathered thus far provide an acceptable level of pre-activity baseline information.

To read the full report, please click here

Is Australia's hydrogen economy a beat up?

Sonia Harvey — Tue, 26 Nov 2019 04:37:47 GMT

HYDROGEN development has been a rare spot of bipartisan energy agreement between the major parties last year and through 2019 and today’s Council of Australian Governments energy ministers’ meeting in Perth will also see the launch of the National Hydrogen Strategy, which first went out for public comment in March.

One of the reasons for the enthusiasm from the Liberal Party is that the gas, even when ‘clean', can be made from fossil fuels.

The Malcolm Turnbull-led government put A$100 million towards a brown coal to hydrogen project in Victoria's La Trobe Valley led by Kawasaki Heavy Industries to the abject disgust of renewable proponents.

Progressive think tank The Australia Institute, which is no friend to any part of the fossil fuel industry, suspects a beat up similar to ‘clean coal' claims and believes this may fix a path for Australia for fossil fuel generated hydrogen or, as it suggests, ‘hytrojan'.

Developing hydrogen with coal and gas risks locking in increased emissions, given the track record of carbon capture and storage. Australia should focus on hydrogen produced with renewable energy," it said.

"Australia should focus on hydrogen produced with renewable energy."

The Institute points to a few things already well known: the gas is used in multiple industrial processes already and created from methane or coal via methods that yield large amounts of CO2. It estimates as much as the combined emissions of the UK and Indonesia.

For hydrogen to be ‘cleaner' when made from fossil fuels the resulting CO2 needs to be captured and sequestered.

It suggests the specific failures of Chevron Corporation's Gorgon CCS plan - three years late but apparently now operating at 60% capacity according to a company speech this week - are a fair indication of the value of sequestration work, though CO2 from the La Trobe project will apparently be sent to CarbonNet's CCS project.

It says Japan and South Korea's hydrogen targets are nowhere near as high as what reports from firms like ACIL Allen suggest, which has been referenced by the CSIRO and Australia's chief scientist Dr Alan Finkel.

"For Japan the ACIL Allen hydrogen import projections for 2030 are up to 11 times Japan's official target. Even the low demand projection is two and half times the official target. The projections for South Korea are similarly high by comparison with government plans. Both countries see imports playing a much smaller role to 2030," it said.

The debate has been characterised in Australia as a race given multiple other countries from Germany to Bahrain are also developing varied hydrogen plans and a possible export industry. As Dr Finkel himself has said, if Australia is "capture" the opportunity it needs to move fast.

Source: Energy News Bulletin

Read more here

Why Falcon Oil & Gas is accelerating on-shore gas drilling plans in the Beetaloo Sub-basin

Sonia Harvey — Tue, 26 Nov 2019 00:38:31 GMT

ORIGIN Energy and its joint venture partner Falcon Oil & Gas will accelerate drilling plans in the Beetaloo Sub-basin.

The NT News can reveal “excellent” preliminary drilling data at the Kyalla 117 N2 onshore gas well has prompted the move.

Kyalla 117, 600km southeast of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be drilled and fracture stimulated to help determine the potential of the resource in the Beetaloo Sub-basin.

Falcon Oil & Gas has issued a statement from its Irish headquarters saying the results have been very encouraging.

Significantly, the joint venture partners are preparing for continued operations during the Top End wet season.

Falcon Oil & Gas said drilling of the vertical section of Kyalla 117 N2 appraisal well in the Beetaloo Sub-basin had been completed to a depth of 1895m.

Falcon Oil & Gas chief CEO Philip O’Quigley was upbeat about the results.

“Preliminary results of the Kyalla 117 N2-1 vertical appraisal represents an excellent restart to the Beetaloo drilling program,” he said. The results were so good that Origin, the joint venture partners, have decided to proceed immediately to the drilling of the horizontal section.

“This signifies the confidence in the potential of the Kyalla shale,” Mr O’Quigley said. “While it is still early days to fully understand the reservoir characteristics and completion quality, drilling results are very encouraging.”

Source: NT News

Read more here

NERA to lead new hydrogen cluster, positioning Australia as a global force in emerging hydrogen economy

Sonia Harvey — Mon, 25 Nov 2019 04:21:29 GMT

The Cluster will also connect cluster members with leading Australian research organisations, supporting the commercialisation of their IP in Australia, creating high value jobs, securing investment and ultimately supporting hydrogen exports driven by a world-leading hydrogen supply chain of technology solutions and services.

The announcement of the Hydrogen Industry Cluster and NERA’s role forms a key part of the National Hydrogen Strategy released by the Council for Australian Governments (COAG).

NERA CEO Miranda Taylor said as the country’s independent Industry Growth Centre for energy resources, NERA welcomes the release of the National Hydrogen Strategy and will continue to support Australian governments harness this significant opportunity for Australia’s energy future.

“While the global hydrogen economy is still embryonic, action is needed now to ensure Australia captures the significant opportunity to help shape the production and use of hydrogen and become a leading source of hydrogen knowledge and solutions,” Ms Taylor said.

“Now is the time to connect and build our underlying hydrogen knowledge economy and help our local innovators overcome barriers to market activation through collaboration between industry, governments, researchers, innovators and SMEs."

“Through this cluster formation, we are uniquely positioned to build on Australia’s existing LNG knowledge, technological capabilities and infrastructure to tap into existing innovator networks to ensure that Australia is a major player in a global hydrogen industry by 2030, including emerging opportunities to be a supplier to markets in Asia.”

The announcement continues NERA’s strong track record of facilitating and funding the formation and development of two industry-led, energy related clusters — a subsea oil and gas cluster (Subsea Innovation Cluster Australia (SICA)) and an ocean energy cluster (Australian Ocean Energy Group (AOEG).

Cluster development forms a key part of NERA’s national initiatives that are supporting sector-wide transformational change and the development of a smart, high value, digital and export-focussed supply chain. Together these activities can unlock +$10 billion of new value for the Australian economy.

For more information on NERA’s national activities, visit nera.org.au or contact NERA Communications Manager Andrew Bennett at andrew.bennett@nera.org.au or 0405 442 669.

About the National Hydrogen Strategy

The National Hydrogen Strategy has been developed by Australian Governments to create the necessary social and regulatory framework that allows the hydrogen industry to expand, and sets out the foundations needed for Australian businesses to develop a vibrant hydrogen industry that benefits all Australians, while meeting safety and community standards. The aim of the strategy is to:

build a clean, innovative and competitive hydrogen industry;
position Australia’s hydrogen industry as a major global player by 2030; and
coordinate the approach to projects that support hydrogen industry development.

About NERA
NERA's vision is Australia as a global energy powerhouse, a sought after destination for investment and the leading source of knowledge and solution. Through a national focus, NERA's role is to grow collaboration and innovation to assist the energy resources industry manage cost structures and productivity, direct research to industry needs, deliver the future work skills required and promote fit for purpose regulation.
To be a part of this collaboration, connect with us here or email contact@nera.org.au.

Exciting results from Origin Beetaloo campaign

Sonia Harvey — Fri, 22 Nov 2019 04:25:36 GMT

ORIGIN Energy and its joint venture partner Falcon Oil & Gas have accelerated drilling plans in the Beetaloo Sub-basin, after preliminary drilling data from the Kyalla 117 N2 onshore appraisal well yielded exciting results.

In a statement this week Irish-headquartered Falcon, which holds a 30% interest in the well, noted Kyalla 117 N2 had now been completed to a total vertical depth of 1,895 metres.

During drilling the well showed elevated gas shows with relatively high liquids, which Falcon CEO Philip O'Quigley said represented an "excellent re-start to the Beetaloo drilling program."

Operator Origin (70%) is now preparing to drill the horizontal section of the well within the Kyalla formation.

"The election by the joint venture to immediately proceed to the drilling of the horizontal section signifies the [partners] confidence in the potential of the Kyalla shale," O'Quigley said.

The JV also acquired 45 metres of conventional coring in each of the Upper and Lower Kyalla reservoir sections.

Sidewall cores and extensive wireline logging has also been acquired, though those results have not yet been released.

"Electric logs calibration by core analysis results together with the planned fraccing of the horizontal section will give us a more quantative view on this play," O'Quigley said.

Once drilling of the horizontal section of the well is completed, it will be fracced and then production tested.

Production testing is expected to take around 90 days, and Origin plans to continue operations during the wet season.

The big-budget Kyalla 117 N2 is the first of two wells the joint venture plan to have drilled by the end of this year, targeting the Kyalla shale liquids gas play in exploration permits EP117, EP76, and EP98.

When the well was spud in October both industry and the Northern Territory government cheered the symbolic new era of investment for the Top End.

Industry lobby body the Australian Petroleum Production and Exploration Association said the resources being targeting would play a "vital role in revitalising the Territory's economy".

Source: Energy News Bulletin

Read more here

Forrest, Cannon-Brookes back ambitious Sun Cable

Sonia Harvey — Thu, 21 Nov 2019 01:12:23 GMT

Iron ore billionaire Andrew Forrest has joined Mike Cannon-Brookes as a lead early backer of the $20 billion-plus Sun Cable project set to drive Asia's transition to cleaner energy.

The pair are the biggest of a group of individual investors that have jointly invested less than $50 million in the ambitious project, which would export solar power generated in outback Australia to Singapore.

"It's really just a meeting of minds and a common purpose, and the broader recognition that we have a huge energy transition to undertake, which is a vastly larger task than people appreciate," said David Griffin, chief executive of Sun Cable.

Mr Forrest's private company Squadron Energy, which is also backing an LNG import project in NSW, and Mr Cannon-Brookes' Grok Ventures are joint lead investors in the oversubscribed capital raising. The other investors have not been disclosed.

Mr Forrest said Australia's potential to be at the centre of Asia's transition to clean energy presents the Australian economy with enormous opportunities, "not just for reducing emissions but also for the economic march of our nation and global competitiveness".

"Sun Cable’s Australia-Singapore Power Link project has the potential to be an important part of this nation-building journey," he said on Wednesday.

Mr Cannon-Brookes, who revealed in an exclusive interview with The Australian Financial Review in September that he was backing the project, described the venture as "massively exciting with world-changing potential".

“In a carbon-constrained world, Australia should be a winner," he said.

"We have the resources, the ingenuity and the drive to get it done – we just have to put it all together. If we nail this, we can build a new export industry for Australia, create jobs and set our economy up for the future."

The funding will underpin early development work for the project, which would link Darwin with Singapore via an underwater power cable. It would help progress the venture towards financial close, targeted for late 2023.

The project, which was revealed earlier this year, involves a 10 gigawatt solar farm and circa 22 gigawatt-hour battery storage plant, to be built near Tennant Creek in the Northern Territory. Power would be transmitted through a high-voltage, direct-current 4500 kilometre interconnector to Singapore, which would include a fibre-optic cable.

Squadron chief executive Stuart Johnston said part of the attraction of the project was its use of existing technology that had not been applied at such a scale before, rather than relying on processes yet to be developed.

Source: Australian Financial Review

Read more here

Third well for Blacktip

Sonia Harvey — Mon, 18 Nov 2019 06:54:39 GMT

The offshore regulator has approved Eni’s plans to drill a third a development well at its Blacktip field offshore Western Australia in permit WA-33-L in the Bonaparte Basin, some 300 kilometres west-south-west of Darwin.

The National Offshore Petroleum Safety and Environmental Management Authority gave the Italian oiler the go-ahead, it said last week.

Blacktip started operation a decade ago and produces gas and condensate from two wells. Eni has a 100% interest in the project.

The field was discovered in 2001 and is in water depths of around 50m.

The main field reservoir of Blacktip is a four-way dip closure made of stacked gas-bearing sandstones.

The sandstones are of the Lower Triassic Mt Goodwin formation and Permian - Upper Carboniferous Keyling and Treachery formations. Eni says recoverable reserves are around 150 million barrels of oil equivalent.

The offshore facilities consist of a well-head platform, two producing wells, flowlines and a subsea gas export pipeline bringing gas, condensate and produced water to the Yelcherr Gas Plant near Wadeye in the Northern Territory.

The gas is used for power production in the Top End.

Source: Energy News Bulletin

Read more here.

Shell Prelude eNews

Sonia Harvey — Mon, 18 Nov 2019 06:52:39 GMT

Shell Prelude latestes eNews now available.

100th LNG cargo milestone for Ichthys LNG

Sonia Harvey — Fri, 15 Nov 2019 06:49:55 GMT

Perth, Australia – INPEX confirmed the 100th shipment of liquefied natural gas (LNG)

departed this morning on the Pacific Arcadia LNG carrier from the Ichthys LNG onshore processing facilities located near Darwin in the Northern Territory.

INPEX President Director Australia, Hitoshi Okawa said the 100th LNG cargo represents a significant milestone for INPEX – coming just 13 months after the maiden LNG cargo was shipped last year.

“Reaching the 100th LNG cargo milestone is a credit to our workforce and reinforces our position as a safe, reliable and efficient energy supplier,” said Mr Okawa.

“INPEX-operated Ichthys LNG facilities are safely ramping up to full production, exporting 100 LNG, 24 liquefied petroleum gas and 46 condensate cargoes since October 2018.

“Ichthys LNG creates jobs and business opportunities and is projected to generate further economic and community benefits in Australia for decades to come.”

Ichthys LNG is one of the largest and most complex energy developments in the world and represents the single largest overseas investment by a Japanese company.

Mr Okawa also said Ichthys LNG is central to INPEX’s operations in Australia and forms a cornerstone of the Company’s global energy business.

“Our priority is to ensure our LNG facilities in Australia are fully utilised over their expected 40-year lifespan,” he said.

Media contact:

Ms Susie Pantall, Communications Manager, INPEX Australia

Office: +61 (0) 862136634

Mobile: +61 (0) 403330020

Email: susie.pantall@inpex.com.au

RBC sees WA, NT as key to Santos' growth

Sonia Harvey — Wed, 13 Nov 2019 01:14:31 GMT

RBC Capital Markets analyst Ben Wilson has just returned from a trip to Santos’ Western Australian and Northern Australian assets including Varanus Island gas plant Darwin LNG.

He said the trip was important given the two states represent the company's largest prospects for growth.

"With the transition of Quadrant operatorship of WA to Santos complete and Conoco-Santos Darwin transition scheduled for the first quarter of 2020, Santos is well positioned to execute these growth ambitions," he wrote.

Santos announced the Quadrant buy, valued at US$2.15, last year and in October announced it would take ConocoPhillips' Northern Australia assets for close to $1.4 billion. In both cases it shared some of the assets already.

He noted the transfer of staff from both, meaning assets remain managed by those who understand them.

Santos is now supplying 400-500 terrajoules per day into the WA market though has not drilled a development since 2012.

Output from Varanus Island and Devil Creek will peak in the second half of next year with the beginning of the new Alcoa contact, he said.

Santos' size, with an enterprise value of over US$15 billion and free cash flow of $1 billion a year, now means it is harder for individual projects to have much of an impact on share price.

"For a market which increasingly asks ‘so, what have you done for me lately?', the impetus to create and execute growth projects only intensifies as an E&P company grows larger."

However with a recently larger footprint in the west and north of the country it now has a "diverse array of impactful growth levers".

Those levers include the Dorado find's oil and related gas, Barossa field backfill to Darwin LNG and the longer term multi-train expansion via McArthur Basin unconventional and Browse and Bonaparte Basin 2C resources.

He also suggests farm downs next year, unsurprising for anyone who has been following the company. It has long said it would farmdown a portion of the 80% of Dorado it shares with Carnarvon Petroleum (20%) and when it announced the ConocoPhillips acquisition it would sell a 25% to project partner SK E&E.

"Longer term we also see McArthur Basin and Narrabri as farm down opportunities," he said, though the latter is still subject to approval from the state of New South Wales.

At Darwin LNG feed gas for the possible additional trains could come from the MacArthur Basin in the Northern Territory. It is permitted for up to 10MMtpa.

Source: Energy News Bulletin

Read more here

Empire Energy Group CEO Alex Underwood Explains the Energy Opportunity in the Northern Territory

Sonia Harvey — Thu, 31 Oct 2019 07:00:59 GMT

Empire Energy Group (ASX:EEG) (OTCMKTS:EEGUF) CEO Alex Underwood is interviewed by Mining Executive Julian Malnic on the next exciting phase of shale gas and shale oil discovery in the Northern Territory's Beetaloo and McArthur Basins.

Empire recently sold down its producing US areas to focus its resources on unlocking the vast reserves of NT gas have become a priority for larger energy companies like Santos and Origin.

The company is one of the smaller and most active in the field and is currently acquiring seismic data to inform 2020 drilling. The discoveries offer the potential for new stand-alone LNG exports to nearby Asia markets, the supply of lower-cost gas to eastern markets, and liquid fuels self-sufficiency for Australia, and will form an important component in the development of Northern Australia.

To view the video interview, please visit:
https://www.abnnewswire.net/press/en/99517/eeg

Conoco, Santos award FPSO contract to MODEC

Sonia Harvey — Thu, 31 Oct 2019 01:32:47 GMT

THE Barossa project has taken another step towards final investment decision after ConocoPhillips awarded a contract for a floating production storage and offloading vessel to Modec International.

The FPSO contract is the project's biggest - comprising engineering, procurement of materials, equipment and services, construction, installation, commissioning and testing of the facility.

Santos holds a 25% interest in the Barossa joint venture along with partner and operator ConocoPhillips (37.5%) and SK E&S (37.5%).

Barossa has been earmarked as backfill for the Darwin LNG plant as the Bayu-Undan field is set to go into decline early next decade.

The field is 300 kilometres north of Darwin in petroleum permit NT/RL5 in Commonwealth waters offshore the Northern Territory.

The core long-life project is nearing the end of its front-end engineering phase and includes the FPSO facility, subsea wells and production system, and a gas export pipeline.

The 260km pipeline will transport gas and will be tied into the existing Bayu-Darwin pipeline, to be turned into LNG and exported.

The FPSO will also store condensate for periodic offloading tankers.

"This contract with Modec is the result of a FEED competition and its award is our biggest step towards pushing the button on the development of Barossa." Santos CEO Kevin Gallagher said.

"The project is technically and commercially robust, and we are closing in on FID early in the new year, with contracts for the subsea umbilicals, flowlines and drilling of six subsea production wells to be awarded in the near future."

"The Barossa Project will provide a new source of gas to Darwin LNG when the current offshore gas supply from Bayu-Undan is exhausted," ConocoPhillips said in a statement.

Source: Energy News Bulletin

Read more here

New condensate processing plant for Darwin

Sonia Harvey — Thu, 31 Oct 2019 01:29:48 GMT

DARWIN will have a new condensate processing plant at a cost of $1.2 billion in a joint venture between McDermott and Darwin Clean Fuels.

This will be first new refinery built in Australia in 45 years, reversing a trend that has seen multiple refineries shuttered or mothballed over the past decade-plus as Australia opted to send crude to and import petroleum from Asia's burgeoning supply of new, low cost mega-refineries.

It will also be the first in Australasia that will be entirely devoted to condensate, which Australia currently sends to the UAE in large quantities according to a recent Resources and Energy Quarterly.

The new processing plant will supply high quality petrol, diesel, LPG and jet fuel to the domestic market, with a capacity of 60,000 barrels per day of condensate and 10,000bopd of LPG and will be the Top End's first refinery.

The project is being delivered through a joint venture between McDermott and private company Darwin Clean Fuels.

Engineering giant McDermott signed the memorandum of understanding with DCF yesterday. Under the agreement McDermott will conduct a feasibility study, technology, front-engineering design and engineering procurement and construction for the condensate processing plant.

"The refinery would leverage our proprietary technologies, including alkylation and sulphur recovery, and is evidence of McDermott's technology-led EPC capabilities," McDermott Asia Pacific senior vice president Ian Prescott said.

"Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments."

Source: Energy News Bulletin

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Senate Estimates blows up over NOGA administration

Sonia Harvey — Wed, 30 Oct 2019 04:59:39 GMT

SENATE Estimates in Canberra heated up last week, with both Senator Pauline Hanson and Senator Rex Patrick putting the spotlight on the national offshore regulator’s conduct when ordering the shutdown of the Northern Endeavour FPSO in the Timor Sea offshore Western Australia earlier this year.

The National Offshore Petroleum Safety and Environmental Management Authority issued Northern Oil & Gas Australia (NOGA) a prohibition order in July over safety concerns.

The company owns the Northern Endeavour FPSO and two production licenses, WA-18-L and AC/L5, in the Timor Sea.

The contracted operator is Upstream Production Solutions.

The notice was issued shortly after an object fell from the vessel and corrosion was identified aboard. According to a NOPSEMA release the FPSO was in a condition that a "release of hydrocarbons" could catch fire, risking multiple lives.

However the two senators in Estimates believe NOPSEMA acted too soon and never physically inspected the vessel.

"NOPSEMA did not go and inspect the Northern Endeavour but relied on a desktop calculation that showed, if the four-kilo object had fallen from a height of four metres onto an unprotected head, then there would have been a fatality," Hanson said.

"You could have actually given an improvement notice rather than a prohibition, which shut down the company."

The statement was taken as a ‘question on notice.'

Months after the notice NOGA and its associated subsidiary companies TOGA Services and Timor Sea Oil & Gas Australia, entered into voluntary administration.

In Estimates last week, Senators Hanson from One Nation and Patrick from the Centre Alliance, expressed concerns that NOGA was the only Australian company in the region, aside Chinese-owned firms and Indonesian companies.

"We have got an Australian company that has now gone into voluntary administration, which is never a good thing. It is one of the few companies we have working on the southern plateau," Patrick said.

"If it were to shut down, all that would remain are the Chinese and the Indonesians because we don't have much in the way of presence there, having been there and having had a very good look around. There is a national interest perspective to this."

Hanson also accused NOPSEMA of "raiding" Lloyd's Register International's offices in Perth without due cause.

"In mid-May of this year, NOPSEMA raided the Perth offices of Lloyd's Register International. We understand NOPSEMA was only really interested in the records relating to Northern Endeavour," Hanson told the committee.

However NOPSEMA Safety and Integrity head of division Derrick O'Keeffe disputed this, saying Hanson's allegations were not correct and the regulator has not "raided anyone's office."

Source: Energy News Bulletin

Read more here

Armour finds gassy sands at Myall Creek

Sonia Harvey — Thu, 17 Oct 2019 03:46:02 GMT

ARMOUR Energy is celebrating encouraging results after encountering thick Tinowon sand packages and its Myall Creek North-1 development well in Queensland.

The company said yesterday it has carried out open hole wireline logging and modular formation dynamic testing, with the Tinowon sand packages encountered including gassy sands with potentially sufficient pressure and permeability for conventional production.

Armour said it's encouraged by logging and testing, and the 4½" production casing has been run and cemented earlier this week.

Further analysis of the logging and MDT data will enable the well completion design to be finalised and installed, followed by a flow test of the primary conventional sandstones before finally installing the wellhead skid and the tie-in pipeline.

The company said the logging results provides a line of sight to possible future drilling targets based on geophysical mapping and sandstone property prediction conducted by Armour.

The SCD Rig 20 will move to the Horseshoe 4 well pad to drill the next well in the program after its work on MCN1 is completed, with the well being planned to be spud next week.

Armour said the MCN1 and Horseshoe-4 wells continue Armour's Phase 3 growth strategy which includes the drilling of new wells and investigations into workovers, stimulation of existing wells and new 3D seismic surveys.

The company believes this together with further work on the Kincora Gas Plant will help reach its 20TJ/day gas production target.

Earlier this week, Armour announced Santos would farm into its vast North Queensland and Northern Territory acreage.

The two will jointly explore and develop the junior's extensive acreage across the South Nicholson Basin in Queensland and the Northern Territory.

Source: Energy News Bulletin

Read more here

Armour and Santos to progress NT acreage

Sonia Harvey — Wed, 16 Oct 2019 03:47:48 GMT

ARMOUR Energy’s share price, which has been falling steadily through the year, recovered yesterday after it announced Santos would farm into its vast North Queensland and Northern Territory acreage.

Armour was up 50% by the close of the market.

The big news of the week has been Santos' buy of ConocoPhillips' Northern Australia assets for close to US$1.4 billion or over A$2 billion but it is also improving its North Queensland and Northern Territory onshore footprint with a move into a huge swathe of Armour's dormant frontier acreage.

The two will jointly explore and develop the junior's extensive acreage across the South Nicholson Basin in Queensland and the Northern Territory.

Armour holds 408 million acres there alone which includes the Egilabria 2DW1 well, the first successfully fracced horizontal shale well in Australia.

Armour is now clearly looking beyond its Kincora gas project, with a presentation made to the Northern Territory Energy Club yesterday outlining its plans for the area. Armour's presentation said it is also working towards conventional gas targets.

Armour was granted the huge swathe of frontier acreage in 2011, which totals over 130,000sq.km.

It says it was the first company to lead the shale charge in Australia and had an 80% success rate. It has spent over $30 million in the NT.

Source: Energy News Bulletin

Read more here

Santos Acquisition of ConocoPhillips’ northern Australia interests

Sonia Harvey — Mon, 14 Oct 2019 02:34:44 GMT

Santos media Centre

Key Highlights

Acquisition of ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa and Poseidon for US$1.39 billion plus a $75 million contingent payment subject to FID on Barossa
Value accretive acquisition of operating interests in long-life, low cost natural gas assets and strategic LNG infrastructure consistent with Santos' core asset growth strategy
Fully funded from existing cash resources and new committed debt
Materially accretive: ~16% expected earnings per share accretion and ~19% EBITDAX accretion in 2020¹
Increases pro-forma production by ~25%, pro-forma 2P reserves by ~5% and pro-forma 2C contingent resources by ~27%²
Reduces forecast 2020 free cash flow breakeven oil price by ~US$4 per barrel
Targeting pre-tax synergies of US$50-75 million per annum (excluding integration and other one-off costs) driven by Santos operatorship and efficiencies
Acquisition delivers operatorship and control of strategic LNG infrastructure with growth potential
Acquisition advances and supports Santos’ goal of taking Barossa FID by early 2020. Santos is prepared to sell down equity in Barossa and Darwin LNG to a target ownership of 40-50% to achieve increased partner alignment
Barossa partner SK E&S is highly supportive and has signed a Letter of Intent to acquire a 25% interest in Bayu-Undan and Darwin LNG
Santos is also in discussions with existing Darwin LNG joint-venture partners for equity in Barossa and in advanced discussions with LNG buyers for Barossa offtake volumes, including with an existing partner in Darwin LNG

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos has enjoyed a long-established relationship with ConocoPhillips which has operated its northern Australia natural gas assets for many years.

“Santos was a founding partner with ConocoPhillips in Darwin LNG, which has been operating since 2006. The acquisition of these assets fully aligns with Santos’ growth strategy to build on existing infrastructure positions while advancing our aim to be a leading regional LNG supplier,” Mr Gallagher said.

“This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 mtpa, and the low cost, long life Barossa gas project.

“These assets are well known to Santos. It also continues to strengthen our offshore operating and development expertise and capabilities to drive growth in offshore northern and Western Australia.”

“Santos is also committed to be Australia’s leading domestic gas supplier and we will be pursuing domestic gas opportunities in the Northern Territory from our broader northern Australia gas portfolio where we have significant resource potential both onshore and offshore.”

“Santos intends to manage gearing within our stated operating range and is targeting to sell-down equity in Darwin LNG and Barossa to 40-50% in order to create alignment between joint venture participants as well as by optimising equity levels in our Western Australia assets.”

“We are also in discussions with existing Darwin LNG joint-venture partners to sell equity in Barossa and further equity in Darwin LNG and also with LNG buyers for offtake volumes. Santos will target the contracting of ~60-80% of LNG volumes for 10+ years prior to taking FID on Barossa, which is expected by early 2020. Discussions to date have demonstrated strong interest in Barossa LNG, given it is a brownfield upstream development located close to North Asian demand.”

“The acquisition is value accretive for Santos shareholders in year one following completion across a range of metrics and importantly further reduces our free cash flow breakeven oil price by approximately US$4 per barrel in 2020.”

“As we have demonstrated following the acquisition and integration of Quadrant Energy into our offshore business, Santos’ low-cost operating model is creating opportunities for disciplined growth across Australia.”

“We look forward to welcoming ConocoPhillips’ Australia-West employees to Santos and combining the two businesses to create one high performing team with a wide range of exciting career opportunities across Santos,” Mr Gallagher said.

¹Expected pro-forma accretion in 2020 assuming US$65 per barrel oil price and full-year of ownership. Assumes Santos interest of 68.4% in Bayu-Undan/Darwin LNG and 62.5% in Barossa (i.e. pre sell-down to SK E&S).

²2018 pro-forma based on Santos’ 2018 production and reserves and resources. Production adjusted for a full-year of Quadrant ownership. Assumes Santos interest of 68.4% in Bayu-Undan / Darwin LNG and 62.5% in Barossa (i.e. pre sell-down to SK E&S).

ConocoPhillips Northern Australia Portfolio Overview

ConocoPhillips holds a high-quality portfolio of operated production, development and exploration assets in northern Australia. It also operates and is the majority owner of the Darwin LNG facility, which has a capacity of 3.7 million tonnes per annum of LNG and significant expansion potential.

Santos announces major acquisition of ConocoPhillips assets

Sonia Harvey — Mon, 14 Oct 2019 02:32:56 GMT

KEVIN Gallagher’s Santos will acquire a swathe of assets from ConocoPhillips in Northern Australia under a US$1.4 billion (A$2.05 billion) deal that will see the major gas producer take ConocoPhillips’ interest in the Darwin LNG project and associated fields.

Under the deal Santos will pick up a 37.5% stake in the Barossa project and Caldita field, a 56.9% interest in the Darwin LNG facility and the declining Bayu-Undan field which feeds it, a 40% stake in the Poseidon field and a 50% stake in the Athena field, for a total of US$1.39 billion plus a further $75 million upon a final investment decision of the Barossa development project.

Santos believes the acquisition of the assets would be "materially accretive" and would lift earnings per share by around 19% in 2020.

The company also said the deal would reduce its future breakeven oil price by roughly US$4 per barrel of oil equivalent.

"This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 million tonnes per annum, and the low cost, long life Barossa gas project," Gallagher said.

"These assets are well known to Santos. It also continues to strengthen our offshore operating and development expertise and capabilities to drive growth in offshore northern and Western Australia."

Source: Energy News Bulletin

Read more here

ConocoPhillips Announces Agreement to Sell Interests in Australia-West for $1.39 Billion

Sonia Harvey — Sun, 13 Oct 2019 02:38:10 GMT

Conoco Phillips Australia Media Centre

HOUSTON – ConocoPhillips (NYSE: COP) today announced it has entered into an agreement to sell the subsidiaries that hold its Australia-West assets and operations to Santos for $1.39 billion, plus customary closing adjustments. In addition, the company will also receive a payment of $75 million upon final investment decision of the Barossa development project.

The subsidiaries hold the company’s 37.5 percent interest in the Barossa project and Caldita Field, its 56.9 percent interest in the Darwin LNG facility and Bayu-Undan Field, its 40 percent interest in the Poseidon Field, and its 50 percent interest in the Athena Field. ConocoPhillips will retain its 37.5 percent interest in the Australia Pacific LNG project and operatorship of that project’s LNG facility. Proceeds from this transaction will be used for general corporate purposes.

“We are extremely proud of our work in Australia-West over the last 20 years. We are pleased that Santos recognizes the value of the existing business as well as the opportunity to develop Barossa and thereby continue Darwin LNG’s operations for another 20-plus years,” said Matt Fox, executive vice president and chief operating officer. “While we believe the Darwin LNG backfill project remains among the lower cost of supply options for new global LNG supply, this transaction allows us to allocate capital to other projects that we believe will generate the highest long-term value to ConocoPhillips.” Production associated with the assets being sold was approximately 50 thousand barrels of oil equivalent per day (MBOED) for the first half of 2019 and proved reserves were approximately 39 million barrels of oil equivalent (BOE) at year-end 2018.

The effective date for the transaction will be Jan. 1, 2019. The transaction is subject to regulatory approval and other specific conditions precedent. The sale is expected to be completed in the first quarter of 2020. The company has posted an investor table that summarizes the impact of this transaction. The table can be accessed at www.conocophillips.com/investor/

Jobs and Investment: Milestone Reached in the Beetaloo Basin with First Drilling Underway

Sonia Harvey — Thu, 10 Oct 2019 00:44:14 GMT

Minister Paul Kirby

Origin Energy has successfully and safely spudded, an industry term for commencing drilling, the Kyalla 117 well as part of its Beetaloo Exploration Program.

Kyalla 117 is the first of two new appraisal wells to be drilled and fracture stimulated to help determine the potential of the resource in the Beetaloo Basin.

The operations in the Beetaloo are supported by a number of Territory businesses with more than 50 Territorians employed during this early exploration stage. This will increase as the project progresses and, if successful, moves into production.

Origin has regulatory approval for its Environmental Management Plans related to the well and is required to comply with strict regulatory standards as per the recommendations of the Independent Scientific Inquiry into Hydraulic Fracturing.

Origin’s exploration permits are located around 600km south-east of Darwin, between Daly Waters and Elliott.

The Beetaloo Exploration Project is a joint venture between Origin as Operator (70%) and Falcon Oil and Gas (30%).

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

“The Territory Labor Government’s focus on creating local jobs and supporting local businesses is being delivered from day one of Origin’s new drilling in the Beetaloo.

“Origin successfully drilling in the Beetaloo is another significant milestone reached off the back of completion of all pre-exploration recommendations from the Pepper Inquiry in July, as part of their exploration program.

“Our regulatory framework allows for investment in this emerging industry while protecting our environment.”

Quotes from Origin General Manager for the Beetaloo and Growth Assets, Tracey Boyes:

“This is an important milestone in realising the opportunity the project could deliver for the Northern Territory.

“A number of Territory businesses have partnered and have been working hard with us to reach this point.

“Tens of millions of dollars have been awarded in local contracts and more than 50 Territorians are working with us on this well.

“And we wouldn’t be where we are today without the support of Native Title holders and the host pastoralist on whose land we are currently exploring.’’

Quotes from APPEA Director – Northern Territory and Exploration, Keld Knudsen:

“The NT’s abundant natural gas resources can play a vital role in revitalising the Territory’s economy.

“The industry remains committed to working with the Territory Government and local businesses to maximise opportunities for employment while making a meaningful low-carbon contribution to future energy needs.”

Media contact: Hannah West 0436 641 108

Australia-Japan relationship vital for energy transition: Coleman

Sonia Harvey — Thu, 10 Oct 2019 00:42:22 GMT

WOODSIDE Petroleum chief Peter Coleman attended the annual Australia-Japan Joint Business Conference this week, outlining the importance of continued LNG exports to Japan from Australia for both nations and the transition to a hydrogen economy.

Coleman stressed the significance of Japanese investment in making large-scale projects including the Pluto LNG plant expansion and future phases in the North West Shelf feasible.

Around 85% of Woodside's contracted LNG is currently sold to Japan.

Coleman told the conference that while the global energy market was continuing to evolve, key challenges faced by industry would be solved through our strong partnership with Japan.

"Our world faces a dual challenge - of providing extra energy, with fewer emissions," Coleman said.

In recent months the private and public sectors in Japan have committed to investing $10 billion into LNG infrastructure globally. This, according to Coleman underscored a "sign of confidence" in the future LNG market.

Longer term that LNG market provides the synergies needed to propel Japan's planned hydrogen economy.

"Just like the genesis of the LNG industry, this (developing hydrogen) is going to require enduring partnerships between buyers and sellers of energy."

Coleman believes that the hydrogen transition will be across two stages; first, ‘blue' hydrogen made from natural gas "with the emissions managed at that point," he said, but did not elaborate.

Source: Energy News Bulletin

Read more here

Bayu Undan decom offers local content opportunities: Conoco

Sonia Harvey — Thu, 10 Oct 2019 00:39:21 GMT

CONOCOPHILLIPS vice president of operations David Boyle said the company is planning ahead for decommissioning of its huge Bayu Undan gas and light oil field, which has been fully in Timor-Leste’s jurisdiction since August 30 when the maritime boundary between the nation and Australia was signed into place in Dili.

Speaking at last week's Timor-Leste Oil and Gas Summit he explained the aquifer-driven reservoirs were already seeing water rates decline across the wells.

Bayu Undan provides the lion's share of income to the small nation, but despite the drop in earnings Boyle is hopeful the decommissioning work will provide jobs and local content opportunities.

"Working early and jointly (with the government) is critical for maximising opportunities for local content," he said.

"We are in the final phase of Bayu Undan we have complex models to predict when production will end."

He said the gas and water rates being recorded confirmed ConocoPhillips' predictions.

"The most critical piece of data is the volume of water that will be produced from each well… we've seen a decrease in water production these past few years and therefore know it's time to start planning for the next phase.

Source: Energy News Bulletin

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Origin and Falcon spud highly anticipated Kyalla-1 well

Sonia Harvey — Thu, 10 Oct 2019 00:35:55 GMT

ORIGIN Energy and Irish joint venture partner Falcon Oil & Gas, have spud the Kyalla 117 N2 onshore appraisal in the Beetaloo Basin in the Northern Territory.

The spudding of the well was met with cheers from both industry and the Northern Territory government, with both noting the symbolism of the well in marking a new era of investment for the Top End.

"Origin successfully drilling in the Beetaloo is another significant milestone reached off the back of completion of all pre-exploration recommendations from the Pepper Inquiry in July, as part of their exploration program," NT minister for primary industry and resources Paul Kirby said.

Meanwhile industry lobby body the Australian Petroleum Production and Exploration Association said the resources being targeting would play a "vital role in revitalising the Territory's economy".

The horizontal well will be drilled to 1,750 metres depth into the Kyalla and Velkarri Formations before a horizontal section is drilled for approximately 1,000m. Once completed the well will be fracced and production tested.

In a statement yesterday Falcon said the principle objective of the well was to assess hydrocarbon maturity, saturation and reservoir quality of the formation as well as collect data for future drilling campaigns.

Source: Energy News Bulletin

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Total and Santos get more time to decide on Beehive

Sonia Harvey — Thu, 03 Oct 2019 00:45:46 GMT

SANTOS and Total will have another month to decide whether or not to acquire a 40% interest each in the offshore Beehive prospect in WA-488-P off the coast of Western Australia.

Melbana Energy, which has a 100% stake in the license currently, has granted Santos and Total until November 4 to elect to acquire their interests.

In a statement today, Melbana noted that the two much larger operators had completed technical assessments of the Beehive prospect.

"The additional time requested is needed by the parties to finalise their commercial analysis and seek internal approvals," Melbana said.

Beehive has been assessed by independent experts McDaniel & Associates as holding a best estimate 388 million barrels of oil equivalent; however future exploration is needed to determine the existence of a significant quantity of hydrocarbons.

Should Santos and Total take a combined 80% stake in the permit, a well will be drilled in the second half of next year at an estimated cost of US$40 million - US$60 million.

Source: Energy News Bulletin

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GR Engineering forecasts profit hit if NOGA can't recover

Sonia Harvey — Wed, 02 Oct 2019 05:23:48 GMT

ASX-listed GR Engineering has flagged a hit to annual profits following news that Northern Oil & Gas Australia has gone into voluntary administration.

Nearly a fortnight ago administrators were appointed to Northern Oil and its associated subsidiaries TOGA Services and Timor Sea Oil & Gas Australia.

The company's administration came just months after its Northern Endeavour FPSO in the Timor Sea was shut down by the federal regulator over safety and environmental concerns.

GR's wholly owned subsidiary, Upstream Production Solutions, is the contracted operator of the Northern Endeavour FPSO.

Yesterday, GR told the market it had conducted "extensive discussions" with the administrators of Northern Oil and assessed its exposure at more than $17 million.

"GR Engineering's assessment of the group's exposure to the [Northern Oil] contract is circa $17.4 million representing receivables and work in progress ($15.9 million) and the finalisation of commitments to vendors and suppliers ($1.5 million)," GR said in a statement.

The administrators have agreed to pay GR costs for services from the date Northern Oil was placed into administration, subject to funding from a secured lender.

Source: Energy News Bulletin

Read more here

Empire planning 2020 NT spud

Sonia Harvey — Tue, 01 Oct 2019 05:25:27 GMT

Empire also advised it has received ministerial consent for its 2D seismic program in the Northern Territory in permit EP187 and expects acquisition to begin soon.

"We have established a solid foundation for growth in the McArthur and Beetaloo Basins," he said.

It expects final Territory approvals for its work program soon, it said this morning. It will be the first junior to recommence on the ground operations in the area, though unlike Santos and Origin is not close to spudding a well.

"Government approvals for drilling operations are proceeding well," it said.

"Empire anticipates it will have all necessary approvals to commence exploration drilling by the commencement of the 2020 dry season, or in the second quarter of next year."

Empire holds 14.5 million acres in the McArthur and Beetaloo Sub-basins

Source: Energy News Bulletin

Read more here

SA greenlights AGIG's hydrogen plans

Sonia Harvey — Mon, 30 Sep 2019 05:27:08 GMT

THE South Australian government has approved Australian Gas Infrastructure Group subsidiary Australian Gas Networks’ development application for the construction and operation of a A$11.4 million renewable hydrogen production facility.

he planned facility will be located at the Tonsley Innovation District to the south of capital Adelaide.

The planned Hydrogen Park SA (HyP SA) will be producing from the middle of next year.

"This is a significant milestone in South Australia's continuing transition to a cleaner energy future. It propels the State's status as a leader in renewable technology and a first mover in hydrogen," AGIG CEO Ben Wilson said.

"At HyP SA we will be building a 1.25MW electrolyser as the first Australian demonstration project of its scale and size, with small quantities of renewable hydrogen produced and blended into the local gas distribution network next year."

He said by next year residents in Adelaide's Mitchell Park would be using gas with 5% hydrogen added to the mix.

The state government has thrown $4.9 million to the project via its Renewable Technology Fund.

Source: Energy News Bulletin

Read more here

Allseas wins Barossa contract

Sonia Harvey — Fri, 27 Sep 2019 05:33:15 GMT

SANTOS and ConocoPhillips have awarded a major contract for the development of the Barossa gas field to Allseas Groups for the engineering, procurement, construction and installation of the 260 kilometre gas export pipeline.

The project area encompasses petroleum permit NT/RL5 located in Commonwealth waters offshore Northern Territory.

Barossa, which will go as backfill to the Darwin LNG once the Bayu Undan field depletes early next decade, is currently in its front-end engineering and development phase before final investment decision.

Development will include a floating production storage and offloading vessel, subsea production system and a gas export pipeline, which will tie into the Bayu Undan-to-Darwin pipeline.

"This is another big step towards Barossa FID and follows the award of the subsea production system and installation support contract in May," Santos managing director Kevin Gallagher said.

"Evaluation of tenders for the FPSO and development drilling contracts is well progressed."

Source: Energy News Bulletin

Read more here

Jadestone completes major capital project on Montara

Sonia Harvey — Fri, 27 Sep 2019 05:31:45 GMT

SINGAPORE-based junior Jadestone Energy has completed a major capital project, installing new subsea umbilical cables across the Montara oilfield, offshore Western Australia in the Timor Sea.

The AIM-listed midcap producer noted that the replacement umbilical installation project was identified by the previous operator of the Montara field as a "high priority."

The umbilicals are an integral part of the deepwater control system on the field, providing electrical power and control signals to the subsea well heads.

The project was conducted using the DOF Subsea Skandi Hercules vessel, which was mobilised from Singapore in August.

The installation project was previously identified by the former operator PTTEP as a "high priority," however work was deferred until Jadestone completed its acquisition of the field and formally became operator.

Jadestone was formally awarded operatorship for the Montara field in July, but had effectively operated the field since acquiring it from PTTEP last year.

Jadestone CEO Paul Blakeley said the major project was completed on budget and without incident.

"Early on, we recognised the need to replace the control link to the Montara subsea wells, and this was done as soon as possible, following acceptance of Jadestone's safety case for Montara," Blakeley said.

"I think of this as a one-off maintenance project, and having it completed now will provide greater confidence in our ability to deliver guidance volumes from Montara."

Since acquiring the field last year, the Montara field has delivered record cash for Jadestone, turning the company from loss to profit in a 12 month period.

Source: Energy News Bulletin

Read more here

Timor-Leste's first oil and gas conference opens next week

Sonia Harvey — Fri, 27 Sep 2019 05:29:52 GMT

NEXT week marks Timor-Leste’s inaugural oil and gas conference, which Energy News will cover from Dili.

The event comes just after the nation's independence 20th anniversary when Australian Prime Minister Scott Morrison travelled to capital Dili to sign the Marine Border Treaty into effect, effectively allowing development of both the Greater Sunrise and Buffalo fields.

The summit runs October 3 and 4 and will be sponsored by SundaGas and hosted by petroleum authority ANPM.

This is the first time the body will be sharing on- and offshore updates for the region's leading oilers and new opportunities for smaller producers.

National oiler Timor Gap will discuss its plans for Timor-Leste and the wider industry.

"With more exploration and production projects on the way, the need for

new partners is higher than ever," it said.

The nation's most senior ministers and oil company executives will speak, as will Carnarvon Petroleum COO Phil Huizenga and Timor Resources Suellen Osborne.

Source: Energy News Bulletin

Read more here

LNG driving NT economy

Sonia Harvey — Thu, 26 Sep 2019 05:24:27 GMT

THE Northern Territory follows Western Australia in record export figures driven largely by a ramp up of new LNG projects in the year.

The government has recorded its highest-ever international export figures to 2019 with a balance of A$8.1 billion or a 111.5% increase on the previous year thanks in large part to Inpex's LNG exports from its Darwin plant which drove 70% of the balance, it said.

"Resources, live export and the commencement of LNG export from the Inpex site which commenced in 2018 top the Territory's major export list," it said this morning.

The Northern Territory has recorded a surplus each year for a decade thanks to energy and minerals in large part.

In 2018-19, the NT's total value of goods exported increased by 65.5%, a rise of $3.8 billion to $9.5 billion, in current prices, driven by "significant" rises in exports to Japan, China and Taiwan.

Japan is the Top End's biggest export destination taking 44.6% of all exports, followed by China at 27.4% and Taiwan at 5.9%. All three import significant quantities of LNG, with Japan's Inpex sending a large number of cargoes to the nation.

As LNG is considered a "confidential" item actual figures were not released by the government.

"Almost doubling our international trade balance is a huge outcome for the Northern Territory, for the economy and for jobs," Minister for Primary Industry and Resources Paul Kirby said.

"The Territory export economy has a bright future and figures like these reinforce the importance of our export market for jobs and the economy.

Source: Energy News Bulletin

Read more here.

Hydraulic fracturing Community Bulletin #27

Sonia Harvey — Thu, 26 Sep 2019 05:22:22 GMT

Methane monitoring in the Beetaloo Sub-basin – Final Report

Independent baseline measurement and monitoring of landscape methane emissions in the Beetaloo Sub-Basin was completed in February 2019 by CSIRO’S Gas Industry Social and Environmental Research Alliance (GISERA), with the final report now available online.

This baseline monitoring was conducted in accordance with recommendation 9.3 from the Scientific Inquiry into
Hydraulic Fracturing in the Northern Territory’s Final Report.

The Northern Territory Government commissioned CSIRO GISERA to complete three mobile survey campaigns over a six-month period between July 2018 and February 2019, capturing both the wet and dry seasons. These surveys were conducted across all exploration permits in the Beetaloo Sub-basin, involving all the pastoral leases in this area.

The surveys showed that the majority of the methane concentrations recorded were within the average range, with isolated pockets of slightly elevated levels mostly attributable to grazing cattle.

The vehicle surveys covered approximately 15,000 kilometres on roads and tracks over a cumulative total of 29 days.

Average atmospheric methane concentration across the survey area ranged from 1.80 to 1.82 parts per million – equivalent to the background concentration of approximately 1.80 ppm expected in rural or natural areas.

Each survey observed isolated sources of slightly elevated methane concentrations in some areas; identified to be attributed to grazing cattle, townships, fires, termites, wetlands and a small section of above-ground pipeline.

No elevated methane concentrations were detected at the 11 plugged and abandoned or suspended petroleum wells, or 21 water bores that were specifically investigated.

An additional four water bores had slightly elevated concentrations, however, each bore had hundreds of cattle within close proximity, acknowledged to be a contributing factor to the slightly elevated concentration.

This demonstrates that plugged and abandoned petroleum wells are not ‘leaky’ and have been undertaken in a manner that is safe, not detrimental to the environment and in accordance with legislation and well operations’ standards.

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

Individual reports are available for each of the three surveys produced, in addition to the final report, and can be viewed on the GISERA website.

Read CSIRO’s GISERA media release: CSIRO’s GISERA completes baseline studies in Northern Territory’s Beetaloo Sub-basin

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

Ireland will phase out oil production but 'transitional' gas to stay

Sonia Harvey — Wed, 25 Sep 2019 05:43:02 GMT

JUST two months after Ireland’s government killed off a piece of legislation aimed at banning offshore oil and gas exploration and production, Ireland’s head of government Taoiseach Leo Varadkar delivered a speech at the UN Climate Summit in New York pledging to phase out oil exploration.

During his speech, the Irish prime minster said the Irish independent Climate Change Advisory Council had recommended exploration for oil should end, "as it is incompatible with a low carbon future," and the government would no longer issue exploration licenses.

"I accept this advice and Ireland will now act on it," Varadkar said.

Under the government's plans exploration licenses already awarded will be unaffected until 2035. However future oil exploration permits will no longer be granted in the majority of offshore Ireland.

"In practice, and initially, it means a moratorium on exploration in 80% of our waters," he said.

While oil exploration will be affected, gas exploration will be encouraged.

"[The CCAC] recommended that exploration for natural gas should continue for now, as a transition fuel that we will need for decades to come while alternatives are developed and fully deployed," Varadkar said.

The speech flies in the face of the government's position just months ago, when the government said banning oil and gas would only increase the need to rely on importing resources.

Varadkar said he wants Ireland to be known as a "green country" that will "act on the climate and environmental challenges facing our planet".

Source: Energy News Bulletin

Read more here

Timor Resources to drill in Timor-Leste 2020

Sonia Harvey — Wed, 25 Sep 2019 05:37:40 GMT

TIMOR Resources will drill Timor-Leste’s first onshore well in almost 50 years in January 2020.

The company has commissioned Eastern Drilling to mobilise a rig to Timor-Leste, according to a company statement.

The country has not had an onshore drilling campaign since 1972, when the Portuguese still controlled the country.

In 2017, the privately-listed Timor Resources won the rights to explore and develop 2,000 square kilometres of onshore acreage on Timor Leste's south coast and holds two production sharing contracts via joint venture with state-owned Timor Gap.

The first well, Karau, at a depth 1,080 meters, will target the Viqueque formation, with the company expecting approximately 430 meters of gross reservoir interval, which is known to be oil bearing in the near surface from evidence of the oil seeps.

"This play type is proven in the Bula field on the Isle of Seram where 20 million barrels of oil have been recovered," Timor Resources general manager Jan Hulse said.

"The Timor Resources drilling campaign targets four different play types, maximizing the chance of commercial discovery.

The deepest well in the five well campaign is 2,740 meters and targets the Triassic Jurassic Formation, according Hulse.

Source: Energy News Bulletin

Read more here

"The time to act is now, to seize the moment": Finkel on hydrogen

Sonia Harvey — Tue, 24 Sep 2019 05:31:25 GMT

AUSTRALIA’s chief scientist Dr Alan Finkel opened today’s International Conference on Hydrogen Safety in Adelaide, the first time the event has been held in the Southern Hemisphere.

Finkel is overseeing the nation's hydrogen roadmap and speaks often on the huge potential it could offer Australia across the energy system, and as a new export.

"The time to act is now, to seize the moment," he said.

Finkel began with praise of Australia's Antarctic unit, which first developed hydrogen for use at the Mawson Station 2005, using wind power and electrolysers to split water into its component parts and cut back on diesel reliance in one of the most distant and least hospitable places in the world.

"What a staggering feat of ingenuity - proving that even in the coldest, darkest, most-hostile continent on Earth, where special materials and construction techniques are often required, hydrogen energy can be safely and effectively harnessed for human benefit," he said.

Finkel sees a plan where Australia has worked its way thought the benefits, risks and barriers to using hydrogen as transport fuel by 2030 before the country realises "the opportunities for clean hydrogen production and storage to contribute to the resilience of Australia's electricity systems," he said.

He also wants to see it introduced into gas networks, something most of Australia's major pipeliners like ATCO and APA Group have been looking at in varied ways, and, following from the federal government's focus, wants to create an export industry to take advantage of the hydrogen roadmaps proposed by North Asia's major economies.

Finkel's speech was a general one and based around his view of Australia's future hydrogen roadmap, and focused on collaboration, safety and transparency, the themes of the conference.

He didn't delve into how the fuel could, or should be made, whether from renewable energy and electrolysers to split water, or from fossil fuels and carbon capture and storage technologies.

But in a separate interview on the sidelines he spoke to the ABC's Radio National and the inevitable question of 16-year-old climate activist Greta Thunberg's speech to the United Nations came up, where she said should governments not act now her generation would never forgive them.

Source: Energy News Bulletin

Read more here

GR Engineering nervous over NOGA administration

Sonia Harvey — Tue, 24 Sep 2019 05:27:57 GMT

ASX-listed GR Engineering has gone into voluntary suspension following news Northern Oil & Gas Australia has been placed in administration.

On Friday morning a published notice on the Australian Securities and Investment Commission website stated that Robyn Duggan and Peter Gothard from KPMG had been appointed to Northern Oil & Gas and its associated subsidiary companies TOGA Services and Timor Sea Oil & Gas Australia.

The appointment of administrators comes just months after regulator the National Offshore Petroleum Safety and Environmental Authority took the extraordinary measure of shutting down the companies' Northern Endeavour floating production storage and offloading vessel.

GR's subsidiary, Upstream Production Solutions, is the contracted operator of the Northern Endeavour FPSO in the Timor Sea offshore Western Australia.

Today, GR requested to be placed in a voluntary suspension to "manage its continuous disclose obligations" between UPS and NOGA.

"The agreement represents a material contract for the company. The company awaits additional clarity," GR said.

In particular the company said it required information on the administrators' intention and capacity to continue to manage the Northern Endeavour and whether or not the FPSO would be brought back online.

GR also noted that Northern Oil had "accrued obligations" to UPS.

"The company has initiated dialogue with the administrator and TOGA's senior secured lender," GR said.

Source: Energy News Bulletin

Read more here

Career opportunities with INPEX

Sonia Harvey — Thu, 19 Sep 2019 05:29:11 GMT

Programmed, together with INPEX Operations Australia Pty Ltd (INPEX), is proud to offer Northern Territorians the opportunity to undertake operations traineeships at the Ichthys LNG onshore processing facilities in Darwin.

INPEX-operated Ichthys LNG incorporates some of the world’s largest and most advanced offshore and onshore processing facilities.This is an exciting opportunity to be an integral part of the LNG industry.

Applications are now open online until Thursday 17 October 2019

Programmed and INPEX value a diverse workforce. Women and Larrakia people, as well as other Aboriginal and/or Torres Strait Islander peoples are strongly encouraged to apply.

Hydraulic fracturing Community Bulletin # 26

Sonia Harvey — Mon, 16 Sep 2019 01:46:19 GMT

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its fifth meeting in Darwin on 28 August 2019.
Established to provide a forum for government to seek advice and share information, the Reference Group received updates on:

baseline methane monitoring and groundwater characteristics of the Beetaloo Sub-basin
the public comment process for Environment Management Plans
the progress of the Framework for Strategic Regional Environmental and Baseline Assessments (SREBA)
key actions to support industry development, and position NT businesses to benefit from development of the onshore gas industry, which include:
- a study into the infrastructure and logistics required to support development of the onshore industry
- a study to map existing industry capabilities and what work is being delivered by local firms and joint ventures to support the development of the offshore industry
- planning for an NT Oil and Gas Service and Supply Strategy and Action Plan to identify and build local capability, strengthen local procurement strategies, workforce capability and local participation.

The Reference Group discussed the implementation priorities for 2019-20, and acknowledged that as at 28 August 2019, 54 of the 135 recommendations were fully implemented with a further 73 commenced.

Communique 5 from this meeting has been published and is available here

The Petroleum Reserved Block Policy (no-go zones) is available here

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

Darwin to become a manufacturing hub thanks to Beetaloo: Canavan

Sonia Harvey — Fri, 06 Sep 2019 01:47:51 GMT

FEDERAL Minister for Resources and Northern Australia Matt Canavan told the South East Asia Australia Offshore and Onshore Conference yesterday, that the federal government will support the development of a manufacturing hub in Darwin and that the key to a flourishing industry lies in the Beetaloo Sub-basin.

Speaking at the conference, the minister noted that the government had learned from mistakes from the past - namely the lack of a gas reservation policy in Queensland over the last decade which has seen gas produced for export and little left for the domestic market.

Canavan told conference-goers that the government was keen to establish a national gas reservation scheme to ensure gas produced from the Beetaloo would support the manufacturing industry and domestic market.

"We are determined not to repeat the mistakes that we made in Queensland, in the Northern Territory," he said.

"Almost a decade ago now when the Queensland coal seam gas fields were being developed, no one was in charge of looking at what their development would mean for the domestic gas market.

"We shouldn't make the same mistakes twice though. That is why the government has announced that we will consult on the design of a national gas reservation scheme.

The suggestion of a gas reservation policy for the NT comes around 12 months after Santos chief Kevin Gallagher urged a rethink on reservation for the top end.

"The Northern Territory and the Beetaloo Basin are obvious candidates to benefit from such a scheme," Canavan said.

Canavan also used his speech to reaffirm the government's commitment to support the Northern Territory to develop its "world class" oil and gas resources, which he said would lead to the establishment of a massive industrial hub in the state.

Earlier this week chemical manufacturer Coogee announced it would build a $500 million methanol plant in Darwin which would require 40 terajoules of gas per day.

Source: Energy News Bulletin

Read more here.

Start of Gas Manufacturing Industry in NT: 1000 Jobs in Construction through Methanol Project Planned for NT

Sonia Harvey — Wed, 04 Sep 2019 01:53:42 GMT

West Australian chemical company Coogee has commenced a feasibility study into a methanol plant near Darwin.

The 350,000 tonne per annum methanol plant would be located at Middle Arm industrial precinct. A final investment decision is expected in Quarter 1 early 2021, with construction commencing soon after.

The Project will cost approximately $500 million and commence operating in 2024, and is estimated to create around 1000 jobs during construction and 350 direct and indirect jobs on an ongoing basis.

Last year Chief Minister Michael Gunner unveiled the NT Government’s 5-Point NT Gas Strategy – aimed at driving Government’s vision for the Territory as a world class hub for gas production, manufacturing and services by 2030.

Methanol is used as a fuel additive and in the manufacture of products such as textiles and pharmaceuticals.

Coogee are currently working with the NT Government’s Gas Task Force as they undertake these studies and the Power and Water Corporation, and gas owners, on options to supply up to 40 TJ’s of gas per day.

Coogee owns Australia’s only methanol plant, which operated for 22 years before closing in March 2016 due to high east coast gas prices.

Middle Arm is already home to the ConocoPhillips Darwin LNG Plant and the INPEX Ichthys Onshore LNG Processing Facility.

Quotes from Chief Minister Michael Gunner:

“The Territory Government’s focus is on creating jobs for Territorians - this project will support over 1000 jobs during construction, and a further 350 direct and indirect jobs during operations, meaning it will create the kind of long term jobs the Territory needs.

"There is enormous opportunity in the Territory to build a manufacturing hub, which will create many hundreds of permanent local jobs. I have long said the Northern Territory can be a world class hub for gas production and manufacturing – it is a value-add industry right here in the NT.

"I’ve met with Coogee and have been encouraging them to invest right here in the Top End.

"They believe in the Territory’s economy and are keen to invest in Territory jobs."

Quotes from Coogee Chief Executive Officer and Managing Director Dr Grant Lukey:

“The proposed Methanol Plant will be strategically located in Darwin to take advantage of its abundant gas supply and its proximity to the south east Asia market. The proposed plant will use innovative, low-emission technology.”

Media Contact: Cameron Angus 0404 021 192

Falcon cashed up for Beetaloo campaign

Sonia Harvey — Fri, 30 Aug 2019 04:58:25 GMT

DUBLIN-based explorer and producer Falcon Oil & Gas said it is in a solid financial position for its upcoming drilling and fraccing program with Origin Energy in the Beetaloo Basin, onshore Northern Territory.

Falcon released its interim six month financials overnight, noting it had US$14.6 million cash in the bank, double what it had at the end of 2018.

The company posted a net loss of US$900,000 for the six months to June 30, compared to a net loss of $1.1 million for the same time last year.

It also announced it would cease trading on Euronext Dublin on September 25.

It will however remain on the AIM exchange in London and Canada's TXS venture exchange.

Over the last six months Falcon which holds a 30% stake ion EP76, EP98 and EP117, alongside Origin Energy (70%) announced contingent resource estimates for the Middle Velkerri B Shale Pool with an estimated 2C gas resource estimate of 6.6 trillion cubic feet of gas.

In January the joint venture signed a rig contract with Ensign Australia for Rig 963 for stage 2 of the Beetaloo drilling program with an option to extend the contract to 2020.

Preparatory work is ongoing in the Beetaloo and Falcon notes that two horizontal appraisal wells will be drilled this calendar year.

The environmental management plan for both drilling, fraccing and testing the wells was approved by the Northern Territory government last week.

The first well to be drilled will be the Kyalla 117-N2 well, targeting the Kyalla shale liquids rich gas fairway.

Source: Energy News Bulletin

Read more here

JADESTONE AWARDS AIRNORTH CONTRACT EXTENSION FOR CHARTERED AIR SERVICES

Sonia Harvey — Fri, 30 Aug 2019 04:43:27 GMT

Airnorth has successfully retained the contract to provide chartered air services to Jadestone Energy between Darwin, Northern Territory and Truscott- Mangalalu Airport, Western Australia.

The contract extension highlights Jadestone’s confidence in Airnorth and its capability to service large oil and gas contracts.

Airnorth CEO Daniel Bowden was delighted to retain the extension, expressing that “The team at Airnorth are proud of the service we have delivered to PTTEP over the past 4 years, and that this has been recognised by Jadestone the new operators of the Montara Project. We look forward to supporting Jadestone and their staff with twice weekly flights on Tuesday and Thursday with our Embraer E120 fleet.”

Airnorth will continue to operate two weekly air services to Truscott-Mungalalu Airport located 520kms westsouthwest of Darwin. The route will be serviced with Airnorth’s Embraer 120 fleet, a 30-seat aircraft proven to be successful due to its size and speed, allowing for faster and more direct air services from its home base in Darwin.

For more information, please contact:

Airnorth Media:

Teyghan Stadelbauer

M: +61 (0) 400 230 684 E:

Teyghan.stadelbauer@airnorth.com.au

Montara field delivers record cash for Jadestone

Sonia Harvey — Wed, 28 Aug 2019 04:48:41 GMT

JADESTONE Energy has posted record cash from operations, as revenue soared four-fold to US$171.7 million (A$254.2 million) in the first six months of the calendar year, compared to just $35 million in the first half of 2018.

Profit after tax for the six-month period to June 30 was $30.9 million, a major achievement considering the company made a loss of $21.5 million in the first half of 2018.

The Singapore-headquartered mid-cap's strong results were driven by its acquisition of the Montara oilfield off Western Australia, which once online more than tripled the company's production over the last six months.

Overall production from Montara and the nearby Stag fields reached 13,315 barrels of oil per day in the second quarter, despite a shutdown due to cyclone Veronica in April.

With increased production, sales also lifted to a total of 2.3 million barrels over the six months, at an average realised price of $71.7/bbl.

"We are building a material business that is strongly cash flow generative, while providing growth through organic investment, both within our existing producing assets in Australia, as well as the new gas developments in Vietnam," CEO Paul Blakeley said.

"Our balance sheet is in excellent shape, with net debt effectively eliminated by mid-year, just nine months since we closed the Montara acquisition with a US$120 million RBL financing arrangement."

Jadestone was formally awarded operatorship for the Montara field in early this month, but had effectively operated the field since acquiring it from PTTEP last year.

It conducted a riserless light well intervention program in June to restore gas lift to the Skua-11 and Swift-2 wells as well as perforated additional sands in the Swallow-1 well.

The work delivered rapid payback and marked the company's first major investment in the field this year.

Jadestone planned to drill an additional infill well, H6, at Montara in the latter half of this calendar year; however, its guidance noted a tightening rig market would likely push the drilling of the well into next year.

Source: Energy News Bulletin

Read more here

TechnipFMC votes to split into two companies

Sonia Harvey — Wed, 28 Aug 2019 04:45:03 GMT

GLOBAL oilfield service provider and tech developer TechnipFMC will separate into two independent, publicly-traded companies following a unanimous decision by the board of directors.

It has been two years since the formation of TechnipFMC following an initial merger of Technip and FMC Technologies, however on Monday the company said it would spin off its engineering and construction operations into a separate company called SpinCo.

SpinCo will focus on LNG, downstream and petrochemicals, building on the legacy Technip position in those areas.

The second company, RemainCo, will be a technology and services provider focused on energy development.

According to analysis from Wood Mackenzie, the demerger is a "bold move" that is less about ‘correcting' something but a "proactive positioning move for a longer-term market shift."

"The upstream company, termed RemainCo for now, will be in essence, the legacy FMC Technologies' equipment and services business, plus Technip's subsea, umbilical, riser and flowline manufacturing business," WoodMac principle analyst Mhairidh Evans said.

"The demerger provides focus and flexibility for each of its divisions, which were already fairly distinct. We'd expect the subsea division to build on its market leadership - perhaps by considering other acquisitions or strategic directions that the wider TechnipFMC couldn't support."

Source: Energy News Bulletin

Read more here

Falcon and Origin set to spud Beetaloo campaign

Sonia Harvey — Fri, 23 Aug 2019 05:03:49 GMT

JOINT VENTURE partners Falcon Oil & Gas (30%) and operator Origin Energy (70%) have received approval to drill the planned Kyalla 117 N2 horizontal appraisal well.

Falcon said yesterday afternoon that its plans to drill, frac, and test the well had been approved by the Northern Territory Department of Environment and Natural Resources.

According to Falcon well pad construction is now underway and civil works is nearing completion. Drilling is expected to begin as soon as next month.

Kyalla 117 will be drilled to a vertical depth of 1,875 metres, before drilling horizontally targeting the Kyalla shale liquids rich gas fairway for a further 3,000m.

It will then be fracced over 20 stages.

"Today's announcement relating to the approval of the Kyalla 117 N2 well EMP targeting the Kyalla shale liquids rich gas fairway is an exciting development for Falcon shareholders. We look forward to the commencement of drilling operations," Falcon CEO Philip O'Quigley said.

The approval from the Northern Territory government is the final hurdle the joint venture needed to jump over before the drilling campaign could get underway.

Kyalla 117 N2 will be the second horizontal well following Amungee NW1-H in 2016 which was completed just before the moratorium was introduced.

Kyalla 117 N2 is the first of two wells under stage 2 of Origin's farm-in with Falcon. Origin plans to drill and frac a second well before the wet season returns in November.

Source: Energy News Bulletin

Read more here

Activists ramp up anti-fraccing campaign

Sonia Harvey — Fri, 23 Aug 2019 05:01:05 GMT

ENVIRONMENTAL activists in Western Australia and the Northern Territory are stepping up their campaign against fraccing following state and Territory government decisions to relax moratoria on operations.

Following yesterday's announcement that the Territory government had granted Origin Energy and venture partner Falcon Oil & Gas permission to finally drill and frac the Kyalla 117 N2 appraisal well, Lock the Gate hit out at Origin calling them a "dodgy gas company" which showed ‘total disregard" for the health and safety of Territorians.

The JV was in fact granted permission August 13 but the news onl;y made public yesterday.

"Many of the data sheets for the chemicals Origin plans to use are data deficient, stating there is ‘no data available'," Lock the Gate spokesperson Graeme Sawyer said.

"There are also a number of threatened and endangered bird species, such as the Gouldian Finch, that could inadvertently drink from open air toxic sludge ponds - the so called mitigation measures put forward are not enough."

"The Pepper Inquiry recommended that these pits be covered, yet the government has caved to industry lobbying and allowed Origin to leave them open anyway."

In Perth, veteran Frack Free campaigner Jane Hammond hit the streets of the CBD with a small group of activists to gather signatures on a petition that called on the WA McGowan government to reinstate a complete moratorium on fraccing.

Source: Energy News Bulletin

Read more here

Hydraulic fracturing Community Bulletin #25

Sonia Harvey — Thu, 22 Aug 2019 04:57:30 GMT

Origin Energy Environment Management Plan approved for onshore gas drilling, stimulation and well testing in the Beetaloo Sub-basin

Minister for Environment and Natural Resources, Eva Lawler, has approved Origin Energy’s Environment Management Plan (EMP) for onshore gas drilling, hydraulic fracture stimulation and well testing for Exploration Permit 117 (EP117) N2 in the Beetaloo Sub-basin.

The approved EMP was prepared with reference to the NT Petroleum (Environment) Regulations 2016 and the Code of Practice: Onshore Petroleum Activities in the Northern Territory.

This is the first EMP to be approved for hydraulic fracturing activities since all 31 pre-exploration recommendations within the Hydraulic Fracturing Inquiry report were completed in July 2019.

The scope of the EMP covers the regulated activities required to enable Origin to drill, hydraulic fracture stimulate, test, maintain and decommission a horizontal petroleum exploration well at one location (N2-1) within the 2019-2024 period.

A total of 6,311 public submissions, including 275 from Territorians, were received and considered by the Minister in making her decision. The Minister also obtained advice from the independent Northern Territory Environment Protection Authority to inform her decision.

The approved EMP and the Minister’s statement of reasons can now be viewed at www.denr.nt.gov.au/onshore-gas

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

Shell awards Flowserve maintenance contract for Prelude

Sonia Harvey — Wed, 14 Aug 2019 01:40:13 GMT

FLOW control and general service provider Flowserve has been awarded a five-year maintenance contract for Shell Australia’s Prelude FLNG facility offshore Western Australia.

Flowserve will support Prelude from its recently refurbished Quick Response Centre in Darwin to provide the maintenance services, and said today it was looking to substantially increase its workforce from local pools to meet the contract.

"Flowserve values the successful projects and relationships we have developed with Shell through the years," Flowserve CEON Scott Rowe said.

"We look forward to helping maximize the uptime and productivity of the Prelude facility with highly responsive maintenance and repair services."

It said today it has expanded its capabilities to include repair services for centrifugal pumps and heat exchangers.

Flowserve did not reveal the financial value of the contract.

It will also expand its repair services to cater for fans and blowers and hydraulic power units.

Flowserve said it would look to increase its indigenous workforce and offer skills training to lead to permanent employment opportunities.

Shell Australia was not able to confirm the scope of the work, but reiterated the importance of using a local workforce.

Source: Energy News Bulletin

Read more here.

NERA: $2m to drive Australia’s next generation of energy technology innovation

Sonia Harvey — Mon, 12 Aug 2019 01:45:40 GMT

Australia’s energy technology ecosystem is being supported with the announcement of $2 million in new funding to help drive the future of energy resources innovation.

The funding, which is being provided by NERA (National Energy Resources Australia), was announced today by Minister for Industry, Science and Technology, the Hon. Karen Andrews MP and Minister for Resources and Northern Australia, Matt Canavan.

NERA Chief Executive Miranda Taylor said the funding will support industry-led projects that can strengthen Australia's position as a global hub for excellence in energy resources innovation.

“We know collaborative partnerships between industry and innovators can produce truly transformational results, and NERA is committed to continuing to support our sector adopt and adapt to new technologies that generate competitive industry outcomes, efficiencies and deliver value and jobs across the nation,” Ms Taylor said.

“Through this new project funding announcement, we hope to work with local innovators to build their capacity and capability in fields of robotics and artificial intelligence, which are critical to improving the future productivity and safety of the energy resources sector, as well as developing transferable skills and technologies with benefits across the Australian economy,” Ms Taylor said.

“By continuing our sector-wide initiatives, we can unlock more than $10 billion in new value and achieve our vision of Australia as a global energy powerhouse, a sought-after destination for investment and the leading source of knowledge and solutions.”

NERA’s $2 million future technology project fund is open to all applicants who meet the Expression of Interest guidelines, and NERA is encouraging applicants with projects/initiatives that have one or more of the following focus areas impacting the energy resources sector:

· Remote operations, robotics and Artificial Intelligence

· Unconventional gas technologies

· Hydrogen

· Decommissioning

Project proponents who can demonstrate innovative approaches, clear commercialisation applications and clear project timeframes should consider applying.

Projects must have matched industry funding, be undertaken in Australia and address one or more of the Knowledge Priorities identified in the NERA Sector Competitiveness Plan — a strategic roadmap for Australia's oil, gas, coal and uranium industries and value chains.

Applications must be received by 30 September 2019. The funding is part of NERA’s collaborative $15.6 million Project Fund. For more information, visit www.nera.org.au.

Ichthys LNG is our pride and joy: INPEX CEO

Sonia Harvey — Wed, 07 Aug 2019 01:42:54 GMT

INPEX chief outlines road ahead following meeting with Prime Minister Morrison and Darwin board

ENERGY News spoke with INPEX President and CEO Takayuki Ueda last week following his meeting with Prime Minister Scott Morrison to discuss the future of the company in Australia. This comes as the company's board held its annual meeting in Darwin, the first time it has been held outside of Japan.

"We are using this opportunity to showcase our achievements here to our directors, many of whom are visiting Australia for the first time, and to discuss opportunities to expand our business here," Mr Ueda said.

"Ichthys LNG is the crown jewel in our global portfolio of projects.

"Ichthys is vital to the future of INPEX. Australia is very important in this regard and Ichthys LNG is our pride and joy."

INPEX announced the final investment decision for the project in January 2012, with the first LNG cargo departing the Ichthys LNG onshore facilities at Bladin Point near Darwin on 22 October 2018.

Since that first cargo, more than 100 cargoes of all product types (LNG, LPG and condensate) have safely departed Australia - with each cargo supporting a brighter future for communities here in Australia and across the globe.

"We are currently focused on the smooth ramping up of our Ichthys LNG onshore facilities, but at the same time there is potential to expand production in Australia through onshore and offshore opportunities" he said.

"We consider surrounding areas in the vicinity of the Ichthys Field to be highly prospective. In the future, offshore gas could be accessed through the five tie-in points that are strategically located along the Ichthys Gas Export Pipeline.

"We have room for up to four additional LNG processing trains in Darwin. For example, gas to feed an expansion train could come from the onshore Beetaloo Basin, or large gas fields in the offshore Bonaparte Basin.

"Of course, any new gas find would need to be commercially viable to support the development of a third train at Bladin Point."

Recently securing agreement from the Indonesian government for the Abadi LNG Project Plan of Development, INPEX is also looking to this huge development as a cornerstone of future expansion and production in the region.

Source: Energy News Bulletin

Read more here.

Australian parliament approves Timor-Leste border treaty

Sonia Harvey — Fri, 02 Aug 2019 01:57:01 GMT

CANBERRA has approved the Timor-Leste maritime border treaty, with the legislation to end the decades-long dispute finally passing both houses of parliament on Monday night after Dili signed it into effect last week.

The treaty was first signed in March last year by both nations' foreign ministers at United Nations headquarters in New York and apart from demarcating a final and agreed boundary also mandates how revenue from oil and gas fields, including the giant Sunrise gas field are carved up between the two.

In passing the treaty parliament made way for Prime Minister Scott Morrison to officially sign it at his next visit to Timor-Leste next month.

"This treaty is an historic achievement for Australia and Timor-Leste and its implementation is firmly in Australia's national interest," foreign minister Marise Payne said in parliament last night.

"Through this treaty, Australia and Timor-Leste have settled a long-running dispute over our maritime boundaries, agreed upon a pathway for the development of Greater Sunrise and laid the foundation for a new chapter in our bilateral relations."

Under the treaty Timor-Leste will hold the rights to the largest share or revenue from the Greater Sunrise field and will pocket 80% of the revenue from the field should the gas be processed in Australia and 70% if it is processed onshore Timor-Leste.

Morrison said the parliament's decision to approve the treaty would establish a "stable legal framework" for the development of oil and gas in the Timor Sea.

"It upholds Australia's commitment to international rules and the peaceful resolution of disputes, and reflects our full commitment to the independence, sovereignty and economic sustainability of Timor-Leste," Morrison said.

"With the passage of the treaty's implementing legislation today, Australia is now ready to partner with Timor-Leste to jointly develop the Greater Sunrise gas fields for the benefit of both countries."

The Timor-Leste government has been pushing to have the gas processed at an LNG plant on its southern coast.

Source: Energy News Bulletin

Read more here.

How is the NT's moratorium lift working out?

Sonia Harvey — Thu, 01 Aug 2019 01:59:14 GMT

THE Northern Territory finally approved the first environmental plan since lifting its fraccing moratorium early last year, giving Santos the greenlight for its two-well campaign in the Beetaloo Sub-basin for this year’s dry season.

It has cheered industry but those with unconventional NT acreage are watching especially closely, hoping to ramp up drilling campaigns of their own; however, much land is now designated reserved and off limits permanently to exploration the road isn't clear yet.

Yesterday in its quarterly Origin Energy said it expects drilling approval this month and to that end preparation work continues for its two planned horizontal appraisal wells this year, with a water extraction licence already in hand for its well to target the Kyalla liquids-rich gas play.

Water bores have been drilled and the access road and well pad construction are near built.

Meanwhile for its Velkerri play the water license is in place, while the water board and access roads have been approved, it is just waiting on well pad civils and drilling approval, but did not give an expected date.

Earlier week the Reg Nelson-led Vintage Energy told the market it expected some delays to its planned campaign in the Northern Territory thanks to conservation issues and may now have to wait until next year's dry season.

Nelson likes the distant onshore Bonaparte Basin acreage so much he bought it twice. Once, when heading up Beach Energy in 2014 and then from Beach this February.

Blue Energy, which has NT onshore holdings along with its Bowen and Galilee basin permits in Queensland, said yesterday in its quarterly said it is watching the space closely, especially since Santos was greenlit in July.

Blue has three exploration permits with work permits that have been suspended until February next year.

"The main Beetaloo Basin Operators, Santos and Origin are "road testing" the new Government approvals process for Environmental Management Plans plus the approvals process to drill, frac and test oil and gas wells, which now sit in two different Government Departments," it said,

"If Origin and Santos can successfully drill, frac and test their wells this dry season, it will go some-way to establish the new process as effective, and give the broader industry some confidence that the new legislation and approval process is navigable in a reasonable timeframe.

In its quarterly of yesterday Empire Energy it notes shortly after the end of the June quarter the NT Department of Environment and Natural Resources had accepted the company's 2D seismic environmental management plan for final assessment.

Empire is hoping to gain a better understanding of the same thing both Santos, and Origin Energy and joint venture partner Falcon Oil & Gas are targeting: the Velkerri shale and Empire too thinks approval of Santos' plan has opened the way for drilling this year.

It noted that earlier this year the Federal budget allocated A$8.4 million for feasibility studies of the Beetaloo

"The Federal government recognises that the Beetaloo and McArthur basins have the potential to be a major source of cost-effective gas supply fir the critically supply constrained east coast gas market in coming years," it said.

Empire too will see some of its former acreage potentially off-limits to exploration but has made submissions to the government,

Importantly its "key near term" blocks EP127 and EP(A)188, which target the Velkerri will not affected and it said yesterday its "continuing to progress its exploration programs according to schedule".

Consultancy EnergyQuest has will be watching Santos' and Origin's upcoming campaigns too. Several months ago it published a rundown of wells to watch this year, putting the Beetaloo spuds at the top of its list.

"These are no ordinary onshore wells. Falcon Oil & Gas disclosed last month as part of a US$9 million capital raising that the gross estimated capex for stages 2 and 3 (a total of four wells drilled and fracture stimulated) was US$130 million," it said.

"The wells in 2019 will go a long way to establishing whether the hype about the Beetaloo is justified. There is plenty of scepticism, due in part to disappointments with unconventional exploration in other Australian onshore basins."

Source: Energy News Bulletin

Read more here

McDermott, BHGE awarded Ichthys contract

Sonia Harvey — Wed, 31 Jul 2019 02:01:49 GMT

MCDERMOTT International and Baker Hughes GE have been awarded contracts for development work on Inpex’s Ichthys LNG project off the coast of Western Australia.

The award includes a joint subsea umbilicals, risers and flowlines and subsea production systems, comprising a new subsea well gathering system, tied back to the existing central gathering systems.

Water depths in the field range from 240 to 270 meters.

Both companies will lead the project from offices in Perth while the fabrication of the URF equipment will be carried out at McDermott's fabrication facility in Batam, Indonesia.

BHGE will deliver the SPS scope, including vertical christmas trees, associated production control systems, distribution equipment and topside controls as well as associated installation and commissioning support services.

Offshore installation of the URF and SPS equipment will commence in 2020 and be completed in 2023.

The field development will be carried out using state-of-the-art assets, including McDermott's derrick lay vessel, DLV 2000.

"McDermott's majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects," McDermott senior vice president for Asia Pacific Ian Prescott said.

"Our experience will ensure delivery during the next phase of this key gas field development."

"We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG," BHGE regional OFE vice president Graham Gillies said.

Source: Energy News Bulletin

Read more here

INPEX Holds a Meeting of the Board of Directors in Darwin, Australia

Sonia Harvey — Wed, 31 Jul 2019 01:53:02 GMT

TOKYO, JAPAN - INPEX CORPORATION (INPEX) announced today that it held a meeting of the Board of Directors in Darwin in the Northern Territory of Australia to highlight its long-term commitment to Australia.

Darwin is the location of the INPEX-operated Ichthys LNG onshore gas liquefaction facilities. INPEX is also engaged in various other oil and natural gas development operations in Australia.

The Meeting of the Board of Directors held at the INPEX-operated Ichthys LNG onshore gas liquefaction facilities near Darwin in the Northern Territory This marks the first time that INPEX has held a meeting of the Board of Directors outside of Japan.

The meeting focused on the steady ramp-up in production at Ichthys LNG and the pursuit of exploration and development initiatives surrounding the offshore Ichthys Field and at INPEX’s onshore acreage in the Northern Territory.

The Board of Directors also discussed future expansion opportunities in Australia, additional investments and contributions to the local communities, and applying the knowledge and capabilities nurtured through operating the Ichthys LNG facilities to various projects to be implemented around the world including the Abadi LNG Project in Indonesia.

Ichthys LNG has, as of the end of July 2019, shipped a total of 65 LNG cargoes, 14 LPG cargoes and 30 condensate cargoes since shipments began in October 2018.

INPEX will continue to work toward the creation of a brighter future for society through its efforts to develop, produce and deliver energy in a sustainable way.

This will be done with the understanding and cooperation of all its Australian stakeholders including project partners, the local communities, the Australian federal government and the governments of the Northern Territory and Western Australia.

About INPEX INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and a mid-tier E&P player just behind the world’s oil majors.

INPEX is currently involved in approximately 70 projects across more than 20 countries, including the Ichthys LNG Project in Australia as Operator. Through sustainably growing its oil and gas development business, developing a global gas value chain business and reinforcing its renewable energy initiatives, INPEX aims to become a leading energy company and continue providing a stable and efficient supply of energy to its customers.

For more information, visit https://www.inpex.co.jp/english/index.html. Media Contact: INPEX Tokyo Office, Public Relations Group, Tel) +81-3-5572-0233

INPEX commits for the long haul in the NT

Sonia Harvey — Wed, 31 Jul 2019 01:48:52 GMT

Ichthys LNG ramping up – focusing on future opportunities Darwin, Australia – INPEX Corporation has strengthened its commitment to the Northern Territory highlighting a series of announcements to benefit local students and Aboriginal communities.

The announcements come as the INPEX Corporation Board of Directors visits Darwin for the first time, signalling the importance of the NT and Australia to the company’s global operations and long-term ‘Vision 2040’ growth strategy.

INPEX strengthens its NT commitments:

• Six new scholarships for students studying at Charles Darwin University (CDU)

• $24 million Larrakia Ichthys LNG Foundation Trust

• More than $3.4 million invested in NT community organisations and initiatives since 2012.

INPEX Corporation President and CEO, Mr Takayuki Ueda said it was an honour to be in Darwin and that many INPEX Board members were visiting the Top End and Australia for the first time.

“We take our commitment to the Northern Territory very seriously and we are delighted to be in Darwin for our first ever Board meeting held outside of Japan,” said Mr Ueda.

“We are using this opportunity to re-inforce our support for local people and communities, visit our state-of-the-art Ichthys LNG onshore processing facilities and to discuss opportunities for further expansion of our business in Australia.”

The INPEX scholarships, totalling $90,000, will be for Northern Territory students at the university who are enrolled in full-time undergraduate courses relevant to the oil and gas industry. The courses are Bachelor of Engineering Science, Engineering Honours, Science, Environmental Science, Accounting, Business, Computer Science or Information Technology. The scholarships will support two new students commencing studies in each of the following years – 2020, 2021 and 2022.

The scholarships build on the $3 million investment made by INPEX and its Ichthys LNG joint venture participants in the North Australian Centre for Oil and Gas. The centre is a training hub for the oil and gas industry and was opened at CDU in 2012.

“We are excited to partner with Charles Darwin University for the INPEX scholarships that will directly benefit students in the Northern Territory,” said Mr Ueda.

“The education of our next generation and building the capability of our future workforce locally in the Northern Territory is very important to us – it’s one way that we can create shared value for the community and our industry.”

INPEX AUSTRALIA MEDIA RELEASE 31 July 2019 Page 2 of 3 The INPEX scholarships form part of a broader commitment to the NT that encompasses substantial economic and community benefits including the $24 million Larrakia Ichthys LNG Foundation Trust.

Launched in November 2018 with a $3 million payment, the Package (part of an historic agreement between INPEX, its Ichthys LNG joint venture participants and the Larrakia People) is considered to be the most significant long-term package of benefits and opportunities provided outside of native title obligations.

The Larrakia Development Corporation is now providing benefits from the Package to the Larrakia People through the Larrakia Scholarship and School Participation programs.

The recently released INPEX 2019-2022 Stretch Reconciliation Action Plan represents INPEX’s commitment towards reconciliation and builds on INPEX’s solid engagement with the Aboriginal and Torres Strait Islander communities where it operates.

INPEX President Director Australia, Mr Hitoshi Okawa said Aboriginal and Torres Strait Islander-owned businesses have shared in the success of Ichthys LNG.

“We are also committed to delivering on our Solid Pathways program which ensures employment opportunities for Aboriginal and/or Torres Strait Islander people while also encouraging subcontractor employment and business opportunities,” said Mr Okawa.

“We are very proud that through Ichthys LNG and other projects we will be delivering economic and community benefits for decades to come in the communities in which we operate.

“That’s why we are pleased to support organisations, initiatives and events that deliver positive outcomes and opportunities for Territorians. We have invested more than $3.4 million into community programs in the Northern Territory since 2012.

“We particularly focus on young Territorians, health and wellbeing and local business capability. Some of the programs we support include the Volunteer Coastguard, Darwin Festival, the Girls Academy and Volunteering NT.”

Mr Okawa said the focus in Australia was to continue to ramp-up Ichthys LNG towards full production levels, while looking for future expansion opportunities.

Since October 2018, Ichthys LNG has safely produced 65 LNG, 14 LPG and 30 condensate cargoes.

Media Contact: Ms Susie Pantall, Communications Manager, INPEX Australia Office: +61 (0) 862136634 Mobile: +61 (0) 403330020 Email: susie.pantall@inpex.com.au

INPEX supports CDU students

Sonia Harvey — Tue, 30 Jul 2019 01:55:05 GMT

INPEX announced today it is funding six students at Charles Darwin University (CDU) to support their studies in courses relating to the oil and gas industry.

Through a five-year partnership, the students will each receive $5000 a year, for three years of their course. The scholarships will directly support

Territory students and enable them to pursue their studies at CDU and go on to build their careers in the Northern Territory.

The Territory’s onshore gas reserves alone contain an estimated 200 trillion cubic feet of reserves and contain enough gas to power Australia for 200 years.

Recent Deloitte Access Economics research found developing these resources could create up to 6300 new long-term jobs.

CDU Acting Vice-Chancellor Professor Sue Carthew said CDU was ideally positioned to help Territorians to equip themselves with the skills to take advantage of the emerging opportunities in the oil and gas sector.

“The oil and gas industry is playing an increasingly important role in the economic development of the Territory and CDU. With the generous support of INPEX, these scholarships will ensure Territorians can access these opportunities and the industry has a strong supply of suitably skilled new employees,” Professor Carthew said.

INPEX Corporation Representative Director, President and CEO Takayuki Ueda said INPEX was committed to supporting education and employment opportunities for young people.

“We are excited to partner with Charles Darwin University for the INPEX scholarships that will directly benefit students in the Northern Territory,” said Mr Ueda.

“The scholarships will help students to complete their studies and go on to build careers in the Northern Territory.”

The $90,000 commitment to scholarships builds on the $3 million investment made by INPEXoperated Ichthys LNG to support the establishment of the North Australian Centre for Oil and Gas.

Hydraulic fracturing Community Bulletin #24

Sonia Harvey — Thu, 25 Jul 2019 00:47:49 GMT

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Implementation of pre-exploration recommendations completed

The Northern Territory Government has completed all recommendations summarised in Table 16.1 of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory Final Report.

This means the Northern Territory Government can assess applications for drilling of petroleum wells and hydraulic fracturing.

The Government has also finalised its Petroleum Reserved Block Policy, following consultation in May/June 2019.

This policy completes the Final Report’s recommendation on reserved blocks, which stated there should be areas that are off limits to any petroleum activities due to unique values of these areas, or their important role in providing environmental, social, health and cultural benefits to surrounding communities.

The areas to be declared reserved blocks are:

areas of high tourism value,
towns and residential areas (including areas that have assets of strategic importance to nearby residential areas),
national parks, conservation reserves,
areas of high ecological value,
areas of cultural significance and
Indigenous Protected Areas.

The formal establishment of the no-go zones under the Petroleum Act will occur in a staged process, with up to 49% of the Territory identified to be protected from petroleum activity.

Action will be taken immediately to declare no-go zones. Further consultations and negotiations will be undertaken with stakeholders, including Land Councils, to determine whether they want to declare areas within ALRA as no-go zones.

Eighty-seven areas will be declared Reserved Blocks as a priority as part of Tranche 1 of declaring no go zones. This is about 11% of the NT.

The remaining areas for declaration requires notifications to park or reserve’s Board of Management (Tranche 2), negotiation with a petroleum company if the area interacts with a granted exploration permit (Tranche 3) and consultation with Land Councils (Tranche 4).

Government is also including the municipalities of Katherine and Alice Springs as a reserved block as well as the Alice Springs airport and the two bore fields that are the current and future town water supply for Alice Springs’, being the Roe Creek and Rocky Hill bore fields.

The Monitoring and Compliance Strategy has also been released which outlines how key Government agencies will undertake active compliance, monitoring and surveillance to detect any non-compliances in the gas industry. Visit the NTG Newsroom to read more.

For information on progress towards the implementation of each of the 135 recommendations from the Inquiry – including the completion of the 31 recommendations required for exploration – go to: https://hydraulicfracturing.nt.gov.au/action-items

Information outlining no-go zone areas, the no-go zone policy and associated maps are available to view here: https://nt.gov.au/industry/mining-and-petroleum/land-tenure-and-availability/petroleum-reserved-blocks

Submissions received during no go zone public consultation period are available to view here: https://haveyoursay.nt.gov.au/

First Onshore Shale Gas Exploration Drilling Environment Management Plan Approved

The first Environment Management Plan (EMP) for Onshore Shale Gas Exploration Drilling has been approved in the McArthur Basin, following the completion of the 31 recommendations required to be completed prior to exploration and drilling recommencing. Visit the NTG Newsroom to read more.

Independent Oversight

Implementation of the recommendations has required careful management and coordination. The appointment of the Independent Officer to oversee the implementation of the recommendations ensures increased transparency and accountability of the implementation process, outside normal government reporting systems. Recognising the importance of this role, the Chief Minister has extended the Independent Officer’s appointment beyond the end of 2019, to ensure this independent oversight continues. In his role as Independent Officer overseeing implementation of the recommendations, Dr David Ritchie is now set to stay in this role for a further six months.

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

Onshore Shale Gas Community and Business Reference Group

The Onshore Shale Gas Community and Business Reference Group (Reference Group) are instrumental in providing feedback to government on the development of the implementation framework and its subsequent execution, in accordance with recommendation 16.4. The Reference Group has proven to be a valuable medium for stakeholders in the wider community to communicate their views. It has been an essential forum for sharing information and providing opportunities for collaboration with a diverse group of stakeholders from across the community, environmental groups, local business, land councils, gas industry and local government.

The Chief Minister has invited the Reference Group to extend their tenure beyond the initial 12 month period.

The fifth Onshore Shale Gas Community and Business Reference Group meeting is scheduled for 28 August, 2019.

To contact the Reference Group, email CBreference.Group@nt.gov.au

If you have any further questions, you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Exploration to Begin

Sonia Harvey — Wed, 24 Jul 2019 04:04:29 GMT

The Territory Labor Government has announced no-go zones for gas exploration and production, and released the Compliance and Monitoring Strategy.

All 31 recommendations identified by the Scientific Inquiry into Hydraulic Fracturing (Inquiry) as requiring implementation before exploration drilling and fracking can occur have now been implemented.

The Territory Labor Government has implemented the criteria for no-go zones from the Inquiry, coupled with areas where there is no petroleum potential.

The formal establishment of the no-go zones under the Petroleum Act will occur in a staged process, with 49% of the Territory identified to be protected from petroleum activity.

Action will be taken to declare immediate no-go zones. Further consultations and negotiations will be undertaken with stakeholders, including Traditional Owners, to determine whether they want to declare areas within Aboriginal Land as no-go zones.

Following community consultation and feedback, Katherine and Alice Springs municipalities are both to be declared as no-go zones.

The Compliance and Monitoring Strategy outlines how key Government agencies will undertake active compliance, monitoring and surveillance to detect any non-compliances in the gas industry.

For information on progress towards the implementation of each of the 135 recommendations from the Inquiry – including the completion of the 31 recommendations required for exploration – go to: https://hydraulicfracturing.nt.gov.au/action-items

Information outlining no-go zone areas, the no-go zone criteria are available to view here: https://nt.gov.au/industry/mining-and-petroleum/land-tenure-and-availability/petroleum-reserved-blocks

Submissions received during public consultation are available to view here: https://haveyoursay.nt.gov.au/

The Compliance and Monitoring Strategy is available to view here https://denr.nt.gov.au/onshore-gas/onshore-gas-in-the-northern-territory/industry-compliance-and-reporting

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

“The Territory Labor Government has done exactly what we promised to do.

“Today we have reached a significant milestone with the completion of all the pre-exploration recommendations.

“Our Government will make sure that as the Territory’s onshore gas industry emerges, our unique natural environment is protected and local jobs come first.

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

“Our natural environment is one of our best assets and it’s a large part of what makes living in the Territory so special.

“It is important that our unique environment and the jobs that rely on it are protected – and that is exactly what this Government is doing.

Media Contact:

Hannah West (Minister Kirby) 0436 641 108

Ellie Clancy (Minister Lawler) 0436 646 689

First Onshore Shale Gas Exploration Drilling Environment Management Plan Approved

Sonia Harvey — Wed, 24 Jul 2019 03:53:07 GMT

From Minister Eva Lawler

The first Environment Management Plan (EMP) for Onshore Shale Gas Exploration Drilling has been approved in the McArthur Basin, following the completion of 31 recommendations from the Scientific Inquiry into Hydraulic Fracturing required before shale gas exploration and drilling can commence.

The Santos McArthur Basin EP 161 Drilling Program 2019 EMP received 22 submissions as a result of the public consultation process, a process that was implemented by this Labor Government.

Santos revised their EMP following the public consultation process, including the wastewater management plan and spill management plan, ensuring that environmental risks will be controlled and reduced to a level that is as low as reasonably practical and acceptable.

The Territory Labor Government is restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines around how the environment must be protected in accordance with the recommendations of the Scientific Inquiry into Hydraulic Fracturing and is meeting the principles of ecologically sustainable development.

As part of the decision to lift the moratorium on hydraulic fracturing, new regulations require the Minister for Environment and Natural Resources to publish an EMP for public comment on the Department of Environment and Natural Resources (DENR) website where the activity involves the drilling of a petroleum well or hydraulic fracturing, and the outcome of the decision, including a statement of reasons.

For more information on EMPs under consideration or outcomes of decisions, go to https://denr.nt.gov.au/onshore-gas/environment-management-plan

Quotes from the Minister for Infrastructure, Planning and Logistics, Eva Lawler:

“Our environment is important and the Territory Labor Government understands that it is a large part of what makes living in the Northern Territory so special.

“As a Government, we are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines on how the environment must be protected – good environment policy is smart economic policy.

“Providing the community with a legislative right to have their say on an EMP relating to drilling or fracking will help restore trust and transparency - a process that did not exist under the previous CLP government.”

Media Contact: Ellie Clancy 0436 646 689

Santos and AGL switch on the solar

Sonia Harvey — Thu, 04 Jul 2019 05:55:47 GMT

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."

Barossa to DLNG Confirmed

Sonia Harvey — Fri, 28 Jun 2019 05:47:41 GMT

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.

Hydraulic fracturing Community Bulletin #23

Sonia Harvey — Mon, 17 Jun 2019 07:47:31 GMT

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

Hydraulic fracturing Community Bulletin #22

Sonia Harvey — Fri, 14 Jun 2019 02:37:57 GMT

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

Creating Jobs, Protecting the Environment: Code of Practice Finalised

Sonia Harvey — Wed, 12 Jun 2019 04:45:25 GMT

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).

FIRST LNG CARGO SHIPPED FROM PRELUDE FLNG

Sonia Harvey — Wed, 12 Jun 2019 00:19:10 GMT

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

Event announcement: SmartEnergy NT Action Alliance

Sonia Harvey — Wed, 05 Jun 2019 03:19:25 GMT

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

Inpex and Indonesian government reach deal over Masela

Sonia Harvey — Tue, 04 Jun 2019 03:10:58 GMT

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

APPEA chief "absolutely happy" to meet Lock the Gate

Sonia Harvey — Tue, 04 Jun 2019 03:08:26 GMT

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

Hydraulic fracturing Community Bulletin #21

Sonia Harvey — Fri, 31 May 2019 03:14:40 GMT

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

ConocoPhillips Innovative Darwin LNG Battery Project to Reduce Carbon Emissions

Sonia Harvey — Wed, 29 May 2019 03:41:59 GMT

DARWIN – ConocoPhillips Australia, as operator of Darwin LNG, today announced that it will invest in an innovative battery project projected to reduce the facility’s carbon emissions from power generation by 20 percent.

The battery will enable the existing turbines to run at maximum efficiency and remove the need to run an additional turbine, saving thousands of tonnes of fuel gas and reducing maintenance costs.

Darwin LNG will become the world’s first LNG plant to install a battery to reduce emissions, providing a template for other LNG facilities.

ConocoPhillips Australia West President Chris Wilson said the project continues Darwin LNG’s record of innovation and leadership in carbon management.

“The battery has significant potential to integrate with other opportunities currently being considered by Darwin LNG to increase energy efficiency and reduce emissions such as alternative energy generation,” Wilson said.

“DLNG has been an industry leader in environmental performance and carbon management for over a decade through its role establishing the West Arnhem Land Fire Abatement project (WALFA), pioneer of the savannah-burning offset industry now central to Australia’s emission reduction efforts.

“WALFA remains one of Australia’s largest offset projects and has been emulated by more than 80 other programs, offsetting more than 2 million tonnes of CO2e emissions whilst improving biodiversity outcomes, creating Indigenous jobs and protecting ancient cultural sites from intense wildfire.”

Wilson also noted that ConocoPhillips’ leadership on managing climate-related risks is highlighted by a global commitment to reduce greenhouse gas intensity of operations by 5 to15 percent by 2030.

The Darwin LNG Joint Venture comprises ConocoPhillips (56.9 percent and operator), Santos (11.5 percent), INPEX (11.4 percent), Eni (11.0 percent), JERA (6.1 percent) and Tokyo Gas (3.1 percent).

READ FULL MEDIA RELEASE HERE

Contact Michael Marren +61477 739 478 Michael.A.Marren@conocophillips.com

Hydraulic fracturing Community Bulletin #20

Sonia Harvey — Wed, 29 May 2019 03:39:28 GMT

Changes to the Regulation of the Northern Territory’s Onshore Gas Industry

The Northern Territory Government has implemented changes to the regulation of the onshore petroleum industry to protect the environment, ensure accountable industry practice and provide transparency and clarity in the decision making process. Download detailed information here

Key changes have been implemented in accordance with recommendations set out in the independent Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry) and include;

The Northern Territory Minister for Environment and Natural Resources is now responsible for the regulation of environmental management of the onshore petroleum industry
Water use for onshore petroleum industry activities is now regulated through the Water Act 1992 with specific requirements for petroleum activities
A legally enforceable Code of Practice clearly defines standards and requirements of petroleum industry operations
Publication of draft Environment Management Plans (EMP) for public comment for the drilling of petroleum wells and hydraulic fracturing prior to consideration by the Minister.

New elements of the assessment of EMPs include:

Publication of EMPs for drilling petroleum wells and hydraulic fracturing for public comment
Alignment with the new Code of Practice
Disclosure of hydraulic fracturing chemicals used, flowback fluid and produced water composition
Baseline weed assessment and weed management plans in place
Northern Territory Sacred Sites Act 1989 authority certificates for protection of sacred sites required before an EMP can be approved
Baseline groundwater and methane monitoring to be completed before drilling and hydraulic fracturing can commence
Mandatory assessment of potential cumulative effects.

There are also important changes to laws to increase the transparency around decision making, in addition to EMPs published for public comment, including that public comments will be taken into consideration by the Minister in her decision making. Public comments, and a statement of reasons will now be published on the Department of Environment and Natural Resources website, should an EMP be approved.

No-Go Zones Released

Sonia Harvey — Mon, 27 May 2019 02:24:11 GMT

The Territory Labor Government will keep almost half of the Territory free from hydraulic fracturing exploration or production activities as part of its commitment to protect our natural environment and create jobs.

Proposed No-Go Zones Consultation Paper

As part of recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, areas exempt from petroleum activity, called no-go zones, will cover 48.44 per cent (654,900km2) of the Territory.

The Inquiry determined, through its research and consultation, there should be areas that are off limits to any petroleum exploration or production activities, due to these areas’ unique values and their important role in providing environmental, social, health and cultural benefits to surrounding communities.

In identifying these areas the Territory Government has taken into consideration a number of existing factors such as granted exploration permits, Aboriginal Land and current land use.

The Territory Government will consult with Traditional Owners through the relevant Land Councils to determine whether or not they would like to declare areas within Aboriginal Land as reserve blocks.

By consulting we are ensuring that these areas not only meet the recommendations of the Inquiry, but they also meet the expectations of Territorians.

Territorians can now have their say on the proposed areas to be declared a reserved block via the website haveyoursay.nt.gov.au

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

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

“Our Government respects the rights of Traditional Owners under the Aboriginal Land Rights Act to determine what activity occurs on their land.

“We are delivering stronger regulation and at the same time creating certainty for companies planning for onshore gas exploration this dry season.”

Media Contact: Cameron Angus 0404 021 192

Hydraulic fracturing Community Bulletin #19

Sonia Harvey — Fri, 24 May 2019 02:53:15 GMT

Public consultation now open on No Go Zones for onshore gas

Territorians are invited to comment on which areas should be exempt from exploration or production activities related to onshore petroleum.

A reserved block, or No Go Zone, is land that is not able to be considered as part of a land release for exploration, and companies are not able to apply for an exploration permit or licences for these areas.
A consultation paper has been developed and expands on the commitments made by the NT Government to protect certain areas of the Territory from ever being subject to petroleum exploration or production activities as part of the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

This will be achieved by declaring areas of land as reserved blocks (no-go zones) under the Petroleum Act 1984. The areas identified include: areas of high tourism value; towns and residential areas (including areas that have assets of strategic importance to nearby residential areas); national parks; conservation reserves; areas of high ecological value; areas of cultural significance; Indigenous Protected Areas and areas that are not prospective for onshore gas.

In detailing these proposed reserved block areas the government has considered a number of other existing factors such as granted exploration permits that have potential reserved block areas within them and Aboriginal Land Rights (Northern Territory) Act 1976.

There will be some areas that can be declared reserved blocks very quickly, while other areas will take some time, and likely require negotiation with exploration permit holders.

Comments received from the public during the consultation will be considered by the Territory Government before it finalises reserved block areas where onshore petroleum activity will not occur in the Territory.
The Territory Government will consult with Traditional Owners through the relevant land councils to determine whether or not they would like to declare areas within Aboriginal Land as reserved blocks.

The Territory Government will negotiate with petroleum companies who hold granted exploration permits and have applications for exploration permits (that are not on ALRA land) to ensure the areas the Inquiry identified should be declared reserved blocks are removed from existing permits and not be considered during the permit application process.

The consultation paper is available to view online at Territory Government’s Have Your Say website https://haveyoursay.nt.gov.au/

Submissions can be made via the website or via email at info.dpir@nt.gov.au

Public submissions are open until 21 June 2019.

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

Read the Consultation Paper: Proposed reserve blocks (no-go zones) for petroleum activities in the Northern Territory here
Alternatively, you can provide feedback via the Have Your Say Portal here

IICA Darwin Technology Expo - 12 June 2019 - No Entry Fee

Sonia Harvey — Thu, 23 May 2019 05:29:02 GMT

IICA Technology Expo - Darwin on 12 June - Delivering a World-Class Engineering Exhibition

Exciting New Exhibitors coming to the region at this year Darwin IICA Technology Engineering Expo!!

A unique opportunity to see the newest and cutting-edge innovations in the Engineering industry and the ever changing Technology in the Instrumentation, Control & Automation industry.

Meet and talk with over 40 World Leading Companies National, International & local Exhibitors, best in the industry!

Happy Hour 5pm - 6pm - Plus Refreshments
No Entry Fee to Register Plus Door Prizes!

All welcome to attend - For more information and to register visit - www.iica.org.au

Or Email me with your contact details or return Registration form at the bottom of website page

Major Barossa contract awarded

Sonia Harvey — Tue, 21 May 2019 06:55:24 GMT

CONOCOPHILLIPS and Santos have awarded a major contract for a subsea production system contract for the Barossa gas field development to TechnipFMC Santos suggests this puts Barossa gas and condensate field ahead to be the leading candidate to backfill Darwin LNG.

The engineering procurement and construction contract "represents a commitment to long-lead items in advance of a final investment decision," Santos said.

The contract includes the engineering, design and fabrication of wellheads, manifolds and control system as well as installation and commissioning assistance.

"This is the first EPC contract to be awarded for Barossa and a big vote of confidence in its position as the leading project to backfill DLNG," Santos managing director and CEO Kevin Gallagher said.

Gallagher said the joint venture is making good progress in the front-end engineering and design phase and is evaluating bids for the gas export pipeline.

"We are also looking at technical proposals for the floating production storage and offloading facility from both MODEC and the Technip/Samsung Heavy Industries consortium."

"An invitation to tender for the development drilling contract has also been released, further advancing the project to meet DLNG's backfill timetable."

"We continue to focus on strong cost discipline with all our selected contractors, developing the certainty of cost, schedule and execution planning required to compete in our global portfolio and support a final investment decision," ConocoPhillips Australia West president Chris Wilson said.

Barossa would more than double Santos' northern Australian production should it go ahead.

Source: Energy News Bulletin

Read more here.

Libs in shock win as APPEA calls for climate policy

Sonia Harvey — Mon, 20 May 2019 07:04:16 GMT

IN an unexpected upset the Liberal-National coalition led by Prime Minister Scott Morrison has been delivered back into power with an estimated 77 seats at this point and the ability to form a majority government.

What exactly this will mean for energy policy isn't clear given going into the election the incumbent party spent little time campaigning on climate and emissions targets. However Scott Morrison has already told radio shock jock Alan Jones the government's energy policy will remain on the same course.

"We set out all our energy policies at the election, and that's what I'm going to do. It includes a continuation of coal fired power as part of the baseload power. It includes hydro. It includes gas," he said after Jones asked for a specific commitment to coal-fired power to reduce household energy prices.

"There's no change to our policies there. What I took to the election is what I'm going to do," Morrison said.

"The next term provides an opportunity for the industry to work with the government to deliver better results for households and businesses," Australian Energy Council CEO Sarah McNamara said.

"We acknowledge and thank minister Angus Taylor for his work in the last term and we look forward to a continued relationship with the Morrison government for the benefit of all energy customers."

Taylor has kept his seat of Hume in Victoria, but there have been questions as to whether he will retain his portfolio.

Sarah Henderson, the Liberal who joined protests against Equinor's plans to drill a well in the Great Australian Bight, lost her ultra-marginal seat of Corangamite to Labor.

Labor's ambitious emissions targets are no longer as the Coalition does not have a target.

Whether the Liberals may the National Energy Guarantee is an open question.

Labor's emissions target may have concerned business, but the loss of its policy to allow carbon credits offshore - so companies with emissions heavy projects in other nations can invest in cheaper projects there rather than Australia - may be a blow to some.

Woodside Petroleum managing director Peter Coleman has suggested an Australia-only policy would be expensive as land could be scarce and compete with agricultural projects.

With no emissions target in place from government businesses have been working to the Paris climate accord target of no more than 2C warming over pre-industrial levels.

Labor's loss could also sink plans to spend $1.5 billion on a pipeline network to send gas from Queensland's Bowen and Galilee basins to market, and to develop the Beetaloo Basin in the Northern Territory, though resources minister Matt Canavan is especially gung ho on the development of Beetaloo.

Australian Petroleum Production and Exploration Association CEO Andrew McConville has called for a climate policy now the election is over.

Source: Energy News Bulletin

Read more here.

Falcon raises cash for Beetaloo exploration

Sonia Harvey — Mon, 20 May 2019 07:00:11 GMT

FALCON Oil & Gas has raised £7 million (A$13 million) through a share placement of 50.5 million shares at £0.14 (26c) per share on the London Stock Exchange, which it will use to fund its share of further drilling and appraisal work in the Beetaloo Sub-basin in the Northern Territory.

The Ireland headquartered oiler has a 30% stake in the unconventional play which consists of three permits (EO76, EP98 and EP117) alongside Australia's Origin Energy which owns the remaining 70%.

Falcon and Origin are expected to bring drilling the next well in its exploration campaign as early as next month.

To date the joint venture has drilled four wells under the stage one work program, which resulted in the discovery of 6.6 trillion cubic feet of 2C gross contingent resources.

A 57 day extended well test resulted in cumulative production of 63 million cubic feet of gas and flow rated of 0.8-1.2MMcf of gas per day.

The focus will be on the liquids-rich Kyalla Formation and Velkerri Shale.

Origin and Falcon have now agreed to evaluate the potential of the liquids-rich gas fairways in both the Kyalla and Velkerri shales as part of the stage two work program, and plan to drill a further four horizontal wells mid this year.

Under the stage two work program two wells will also be fracced. A third stage work program is planned for 2020.

The estimated gross capital expenditure for stage two and stage three is US$130 million. Under the terms of the Farm-out Agreement, Falcon Australia is carried for up to A$113 million (US$80 million) for the costs of Stage two and Stage three, equating to US$24 million net benefit to Falcon, with Falcon's net cash contribution estimated at US$15 million, before contingency.

"Falcon is delighted with the proposed placing to conditionally raise £7 million. This placing will see the company being adequately funded through the next US$100 million of capital expenditure on the Beetaloo project," Falcon chief executive Phillip O'Quigley said.

"Preparations continue for the recommencement of drilling of stage two in mid-2019, which will include the drilling and hydraulic fracture stimulation of two horizontal wells, and we look forward to updating the market in due course."

Source: Energy News Bulletin

Read more here.

Territory Investment Potential on Show

Sonia Harvey — Sun, 19 May 2019 00:15:13 GMT

The Territory’s plan to be a world-class hub for gas production, manufacturing and services will be outlined in a series of sessions aimed at the oil and gas industry and investors on the East Coast.

Team NT Executive members Paul Tyrrell and Clare Martin will lead the pitch. Their role is to advocate the Territory’s investment, business and lifestyle prospects nationally and internationally and harness investment opportunities.

Mr Tyrrell, as former head of the Territory’s public service, and Ms Martin, former Territory Chief Minister, are credited with playing key roles in significant initiatives such as attracting the Ichthys Project onshore LNG facilities to Darwin.

The oil and gas industry is supported by the Territory Labor Government’s Budget 2019 which included $6.5 million to continue the $26 million Resourcing the Territory program to stimulate resource exploration and investment attraction.

Among the points highlighted at the sessions will be:

The Territory’s five-point plan to diversify and grow the Northern Territory gas industry, including creating a new gas demand centre in Darwin to develop a range of gas processing and manufacturing industries, research and cluster centres.
Prospective onshore gas developments in the Territory and the significant opportunities for gas supply to East Coast industrial and residential customers. This comes after the first gas flowed from the Territory to East Coast gas markets via the Northern Gas Pipeline in January this year.
The Territory’s record of successfully facilitating large-scale investment projects across a range of industries including oil and gas, mining and agribusiness. Examples of gas sector developments include the INPEX-operated Ichthys LNG Facility, the ConocoPhillips-operated Darwin LNG Facility, Jemena’s Northern Gas Pipeline and the Tanami Gas Pipeline.
Darwin’s role as a strategically located LNG hub supplying Asian markets. The Territory is strategically positioned to secure gas from existing offshore gas reserves in the Timor Sea or from future onshore gas developments.

The sessions will be held this week in Brisbane, Sydney and Melbourne. They are being held in cooperation with the AI Group, Manufacturing Australia, and Chemistry Australia.

Quotes from the Minister for Trade and Major Projects, Michael Gunner

“Continuing to sell the Northern Territory as an attractive investment destination is a priority of the Territory Labor Government.

“The oil and gas industry plays an important role in growing our economy and creating jobs through further onshore and offshore investment.

“Team NT’s sessions are an important element of showcasing what the Territory has to offer and will help maximise opportunities for investment and job creation.”

Media contact: Cameron Angus 0404 021 192.

Hydraulic fracturing Community Bulletin #18

Sonia Harvey — Thu, 16 May 2019 00:16:16 GMT

Stronger Protections for Surface and Groundwater

Parliament this week passed amendments to the Water Act 1992 that fulfil several key recommendations (7.6, 7.8(a), 7.9 and 7.17) of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry).

This means:

The disposal of hydraulic fracturing waste to surface water and aquifers is prohibited (s17A);
The use of surface waters for petroleum activities is prohibited (s45A); and
Any proposed groundwater extraction for hydraulic fracturing within 1km of an existing bore will be required to have the written agreement of the bore owner or be supported by a detailed hydrogeological investigation to the satisfaction of the Controller of Water Resources which demonstrates there will not be adverse impact on the existing bore (s60A)

Passage of the Water Amendment Bill 2019 through Parliament removed any discretion the Controller of Water Resources previously had in relation to implementing these recommendations of the Inquiry Report.

This ensures future decision makers are held to the same high standards of water resource protection.

The Bill also eliminates the potential for legal challenges and future weakening of the required protections, and provides certainty to industry regarding water related requirements and to the community that these high standards of protection will continue to be applied into the future.

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

Gas features front and centre in NT budget 2019

Sonia Harvey — Thu, 09 May 2019 00:56:27 GMT

THE Northern Territory Michael Gunner-led Labor government has released its 2019 Budget reaffirming the Top End’s commitment to the oil and gas sector.

The government has established a five-point plan to develop the gas industry in the Territory and allocated $820,000 in the budget to re-establish the NT Gas Task Force to implement its plan.

Under the plan the government hopes to "propel" the Territory into a world class hub for gas production and manufacturing by 2030 by expanding Darwin's LNG export hub, growing gas supply and establishing a manufacturing industry.

The plan also outlines ambitions that include growing research and training capacity and establishing further pathways to contribute to national energy security across the east coast.

Up to $5 million per year will be available to the task force and industry to pursue gas projects.

A further $1.48 million has been earmarked to implement the recommendations of the Scientific Inquiry into Hydraulic Fracturing in the NT which will include coordination and advice on petroleum environmental management matters.

There is also $1 million for strategic studies, including for gas developments in the Beetaloo Sub-basin, Darwin Harbour and Middle Arm.

The government also plans to spend $6.5 million to continue to deliver the four-year $26 million Resourcing the Territory Program in an effort to stimulate further exploration and encourage investment.

Australian Petroleum Production and Exploration Association external affairs director Matthew Doman said the oil and gas industry continued to play a "crucial role in revitalising the economy."

"The industry remains committed to working with the Territory government and local businesses to maximise opportunities for employment," Doman said.

Major projects in both the private sector and government facilitated projects took centre stage in this year's budget papers with the government noting that some of the world's largest resource projects are located in the Northern Territory, including the $37 billion Inpex-led Ichthys LNG project.

Handing down the budget in parliament yesterday, NT treasurer Nicole Manison told the parliament there were many "exciting opportunities for onshore gas exploration and development."

"[The] government has plans for the Territory to become a new downstream gas processing industry and manufacturing hub, attracting billions of dollars in international investment and creating thousands of local jobs across the Territory," Manison said.

"In the Beetaloo Basin alone, there is an estimated 500 trillion cubic feet of gas in one shale formation - enough to power the nation for 400 years."

Source: Energy News Bulletin

Read more here

Santos makes huge NWS gas hit

Sonia Harvey — Wed, 17 Apr 2019 06:47:07 GMT

SANTOS has said this morning the Corvus-2 appraisal well offshore Western Australia in the Carnarvon Basin has discovered a significant gas resource, intersecting a gross interval of 638 metres, making it one of the largest ever columns ever discovered across the North West Shelf.

It was drilled to almost 4000 metres in water depths of 63m.

Wireline logging has confirmed 245m of net hydrocarbon pay across the target reservoirs in the North Rankin and Mungaroo formations, between 3,360-3,998m.

"Corvus-2 has delivered a fantastic result and has opened up a number of additional exploration opportunities in the region," managing director Kevin Gallagher said.

"It is particularly exciting to have realised a higher liquids content and significantly bigger resource volume than we expected."

The well also encountered higher permeability zones than in Corvus-1 from initial pressure sampling which indicates a "significantly higher" condensate to gas ratio of some 10 barrels per million cubic feet, and CO2 content of 7%.

It is three kilometres southwest of Corvus-1, drilled almost 20 years ago, 28km from the Reindeer platform that sends gas to the Devil Creek domestic gas plant in Karratha, and 62km from the Varanus Island tie in point, all of which Santos owns outright since its takeover of Quadrant Energy last year.

Gallagher suggested Corvus-2 could be tied back to either facility and could increase their utilisation and provide backfill and extend the plateau "well into the 2030s".

The Noble Tom Prosser drilled the well, which will be plugged and abandoned once logging operations are complete.

Read more here

Source: Energy News Bulletin

Shell and Conoco complete Greater Sunrise sale

Sonia Harvey — Wed, 17 Apr 2019 06:42:14 GMT

SHELL and ConocoPhillips have both announced the completion of the sale of their shares of the Greater Sunrise gas field to Timor-Leste for a combined US$650 million. Shell said late yesterday the sale of its 26.5% share to three wholly-owned nominees of Timor Gap, the national oil company for $300 million had completed.

"We understand the importance of this resource to the Timor-Leste nation and respect the Government's determination to pursue an alternative path to development through an onshore facility," Shell chair Zoe Yujnovich said.

ConocoPhillips made the announcement Monday on selling its 30% share for US$350 million

"ConocoPhillips recognizes the importance of the Greater Sunrise Fields to the nation of Timor-Leste, and this sale gives them a significant working interest in this important development," executive vice president and chief operating officer Matt Fox said.

First ConocoPhillips and then Shell moved out of the project late last year, announcing the sale of the assets to the small nation which used its $17 billion sovereign wealth fund to pay for the transactions.

This gave it a 56% share of the field, which Woodside (33.5%) still operates. Osaka Gas has the remaining 10% share.

Woodside did suggest the original contract gave it veto power and it could possibly block the sale if it chose.

Timor-Leste has long said onshore development of the fields via an LNG plant is "non-negotiable", underlining it again in March when the ambassador to Australia and head of the petroleum and mines body spoke at the Australasian Oil & Gas conference in Perth.

Petroleum and minerals authority president Gualdino do Carmo da Silva told Energy News then "for us it's non negotiable".

Read more here

Source: Energy News Bulletin

Hydraulic fracturing Community Bulletin #17

Sonia Harvey — Fri, 12 Apr 2019 01:26:42 GMT

The first Environment Management Plan (EMP) for exploration drilling of onshore shale gas in the Northern Territory has been accepted for assessment by the Minister for Environment and Natural Resources.

The EMP has been submitted by Santos and covers two proposed wells in the Beetaloo Sub-basin.

The EMP is an activity specific plan that must identify all environmental impacts, and demonstrate that the impacts and risks associated with the activity are reduced to a level that is as low as reasonably practicable. The EMP must also show how appropriate environmental management practices will be implemented.

The Minister will consider the EMP and will only approve the activity if satisfied that the objectives and approval criteria of the Petroleum (Environment) Regulations 2016 have been met.

The proposed Santos drilling program opened for public comment today and will remain open for the full 28 day consultation period. All submissions will be shared with Santos and published online.

Comments will be considered by the Minister in order to make a fully informed decision as to whether or not to approve the EMP.

If an EMP is approved, it will be published on the Department of Environment and Natural Resources website, including a statement of reasons outlining why the decision was made.

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

NT leading the pack with remote community solar development

Sonia Harvey — Thu, 11 Apr 2019 05:45:59 GMT

THE construction phase of the Northern Territory Solar Energy Transformation Program has now finished, replacing diesel and fossil fuel generators across 25 sites in regional parts of the territory.

The rollout cost A$59 million and was co-funded by the Territory government and Australian Renewable Energy Agency.

All 25 of the projects were engineered and constructed by Territory Power and Water Corporation.

The project integrates 10MW solar generation facilities with existing diesel power stations without compromising power quality.

The program included a unique project at Nauiyu (Daly River) that combined a 1MW solar array with a 2MWh battery, allowing for 100% of solar energy use during the day with diesel engines operating at night.

The NT government said the primary goal of the program was to reduce diesel use by 15% in targeted communities, which adds up to 94 million litres of diesel savings over the 25-year life of the program.

"This is a fantastic achievement for all involved in completing this ambitious project to deliver the largest rollout of renewable energy to remote, off grid communities in the Northern Territory," ARENA CEO Darren Miller said.

"By installing solar power systems across these 25 communities, this project will help these communities to reduce their reliance on diesel. Now integrated, these communities can increase their uptake of renewables and have the option to add batteries to store their solar energy in the future."

Source: Energy News Bulletin

Restoring Trust: Release of Draft Environment Protection Legislation Community Engagement Report

Sonia Harvey — Thu, 11 Apr 2019 01:26:42 GMT

Office of the Minister Eva Lawler

The Territory Labor Government has moved one step closer to introducing its new environment protection legislation following extensive community consultation.

The consultation resulted in 35 stakeholder groups interviewed, 33 written submissions and 178 form letters.

Several amendments to the draft legislation will be made as a result of the consultation process to ensure the legislation retains its principle focus on mitigating the environmental impacts of development while protecting the environment.

The Environment Protection Bill is due to be introduced to Parliament in May and represents the first stage of environmental regulatory reforms promised by the Territory Labor Government.

Establishing a new environment protection legislative framework aims to build community trust, facilitate investor certainty and deliver better environmental outcomes.

The new Bill:

replaces the current Environmental Assessment Act;
provides for a new environmental impact assessment system;
provides the introduction of a single environmental approval issued by the Environment Minister;
will be supported by new regulations which provide for different levels of assessment; and
enables prescribed timeframes for each decision in the environmental impact assessment system.

A comprehensive response to the submissions received can be viewed at https://denr.nt.gov.au/environment-information/environmental-regulatory-reform/submissions-draft-environment-protection-bill-and-regulations together with the Report and individual submissions.

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, and good environmental policy is smart economic policy.

“The Territory’s current environment protection legislation is confusing and outdated – that is why the Territory Labor Government will introduce a new Environmental Protection Bill that will support industry and protect the environment.

“The implementation of this legislation is another solid example of our Government delivering on our promises to protect the environment and create jobs.

“The Territory Labor Government has balanced the views of stakeholders to construct an environmental regulatory framework that provides for public participation and greater transparency, certainty and timeliness of decisions.”

Media Contact: Ellie Clancy 0436 646 689

Restoring Trust: Public Comment Invited on the First Onshore Shale Gas Environment Management Plan

Sonia Harvey — Thu, 11 Apr 2019 01:23:53 GMT

Office of Minister Eva Lawler

The first Environment Management Plan (EMP) for onshore shale gas exploration drilling since the Territory Labor Government lifted the moratorium on hydraulic fracturing in the Northern Territory has been accepted for assessment.

The Santos QNT Ltd (Santos) McArthur Basin EP 161 Drilling Program 2019 (EMP) has been published at https://denr.nt.gov.au/environment-information/onshore-gas-in-the-northern-territory/environment-management-plan with the 28 day consultation period open from tomorrow.

The EMP is an activity specific plan that must show all environmental impacts and risks have been considered and appropriate environmental management practices implemented.

The Territory Labor Government is restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines around how the environment must be protected in accordance with all 135 recommendations of the Scientific Inquiry into Hydraulic Fracturing.

The Petroleum (Environment) Regulations require the Minister for Environment and Natural Resources to publish an EMP for public comment, where the activity involves drilling of a petroleum well or hydraulic fracturing.

Interested parties may submit written comments on the EMP during the consultation period and the Minister will consider these comments in deciding whether to approve an EMP.

All EMP decisions will be published on the Department of Environment and Natural Resources (DENR) website, including a statement of reasons outlining why the decision was made.

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

“This Government is making it easier to invest in the Territory as these reforms will ensure our unique environment and the jobs that rely on it are protected, while also providing further opportunities for investment and new jobs for the Territory - protecting the environment creates jobs, and good environmental policy is smart economic policy.

“I thank Santos for submitting its EMP and encourage the community to have a look at it and provide their comments so I can make a fully informed decision.

“Providing the community with a legislative right to have their say on the approval of an EMP relating to drilling or fracking will help restore trust and transparency - a process that did not exist under the previous CLP government.”

Media Contact: Ellie Clancy 0436 646 689

Growing the Territory: Vision for Critical Minerals

Sonia Harvey — Tue, 09 Apr 2019 01:32:49 GMT

Office Minister Paul Kirby

The Territory Labor Government is outlining a vision for the NT to become a globally-significant producing, processing and manufacturing centre for critical minerals.

Released today, the Territory Critical Minerals Plan is designed to further grow the industry, create jobs and stimulate the economy.

The Territory Critical Minerals Plan helps position the Territory as a strategically significant jurisdiction in critical minerals important to the high technology, battery and defence sectors, and seeks to:

Accelerate exploration for critical minerals
Support critical minerals projects to commence production
Grow refining, processing and manufacturing of critical minerals in the Territory

There are potential critical minerals projects progressing in the Territory including TNG Limited’s Mount Peake Project, KGL Resources Limited’s Jervois Project, Arafura Resources Limited’s Nolan Project and Core Lithium Ltd’s Finniss Lithium Project. The Territory Critical Minerals Plan helps support these projects.

A more comprehensive Territory Minerals Industry Development Strategy is under development by the Departments of Trade, Business and Innovation and Primary Industry and Resources with a view to being released by the end of 2019.

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

“The Territory is attracting international investment interest with strong reserves in critical minerals including copper, lithium, vanadium, rare earths, tungsten and cobalt, and with established logistics capability for exporting critical minerals to international markets.

“The Territory Labor Government supports the development of new critical minerals projects. Establishing new mines creates local jobs for Territorians.

“The Territory Critical Minerals Plan will help develop the Territory’s strategic mineral reserves and will showcase the Territory’s competitive advantages to potential investors, other jurisdictions and the Australian Government.”

Media Contact: Carl Pfeiffer 0417 910 720

Construction Completed on Australia’s Largest Rollout of Solar Power in Remote Communities

Sonia Harvey — Tue, 09 Apr 2019 01:30:50 GMT

Office Minister Dale Wakefield

The Territory Labor Government’s target of 50% renewables by 2030 will deliver local jobs, and cheaper, cleaner power.

Construction is now complete on the Solar Energy Transformation Program (SETuP), which is Australia’s largest rollout of solar power to remote communities.

SETuP is a $59 million program co-funded by the Territory Government and the Australian Renewable Energy Agency (ARENA).

The program was rolled out to 25 sites across the Territory.

SETuP integrates 10MW of solar PV in remote locations with existing power stations, resulting in remote hybrid power generation. This reduces reliance on costly diesel for electricity generation, and delivers reliable and safe power to remote locations.

The primary goal of the program is to reduce diesel use by 15% in targeted communities, which adds up to 94 million litres of diesel savings over the life of the program (25 years).

The SETuP program was delivered by Power and Water Corporation and the existing funding agreement with ARENA will go through to April 2022 for performance reporting.

Quotes from Minister for Renewables, Energy & Essential Services, Dale Wakefield

“The SETuP program is an important step forward in achieving the Territory Labor Government’s target of 50% renewable energy by 2030. SETuP will help to support cleaner power for Territorians in remote communities by reducing reliance on costly diesel, and also air pollution.

“ARENA is our partner in this significant program that will deliver for remote Territorians in decades to come. I thank them for their continued partnership and investment in the Territory.

“The SETuP program was delivered by Power and Water. The program has won engineering excellence awards and due to the hard work and innovation by staff, the Territory is now seen as a leader in remote hybrid power generation. I congratulate and thank all involved.”

Quotes from CEO of the Australian Renewable Energy Agency (ARENA), Darren Miller

“This is a fantastic achievement for all involved in completing this ambitious project to deliver the largest rollout of renewable energy to remote, off grid communities in the Northern Territory.

“By installing solar power systems across these 25 communities, this project will help these communities to reduce their reliance on diesel. Now integrated, these communities can increase their uptake of renewables and have the option to add batteries to store their solar energy in the future.

“SETuP is part of ARENA’s Regional Australia’s Renewables - Community and Regional Renewable Energy (CARRE) Program, where the Agency worked collaboratively with key regional energy suppliers and distributors to assess, plan, fund and share the results from projects like SETuP, with an aim to replicate the program's successes across further communities.”

NOTE: See attached list and map of the 25 remote communities that are part of the SETuP program. Also attached are images of solar PV panels constructed in Atitjere (Hart’s Range) and Gunbalanya (Oenpelli).

Media Contact: Paige Nguyen 0428 727 244
paige.nguyen@nt.gov.au

Shell to plant trees to offset carbon

Sonia Harvey — Tue, 09 Apr 2019 01:28:03 GMT

SHELL yesterday announced a range of new carbon offset plans from forest planting to expanded carbon credits and ways users can offset their own emissions via purchase of its high octane fuel Shell V-Power as part of its drive to reduce emissions by 2%-3% in the next three years.

For Australia that means an 800 hectare reforestation project in Queensland and internationally it will partner with independent Dutch state forestry service Staatsbosbeheer to plant over five million trees in the next 12 years.

The forester will plant new trees after ash trees were affected by what it calls "an aggressive fungal disease" in the Netherlands.

Shell has also signed on with Land Life for a 300 hectare reforestation project in Spain, with 300,000 trees to be planted in the Castilla y Leon region by the end of 2019.

"Combined with a technology-driven approach, reforestation can now be achieved and optimised at scale, maximising the impact of this investment," Land Life CEO Jurriaan Ruys said.

It is also expanding carbon offset opportunities for businesses to purchase a wide variety of carbon credits to offset CO2 from their vehicle fleets.

Shell said it buys these from "a global portfolio of nature-based projects, including Cordillera Azul National Park Project in Peru, Katingan Peatland Restoration and Conservation Project in Indonesia and GreenTrees Reforestation Project in the US".

Each credit is third-party verified and is worth 1 tonne of CO2.

Source: Energy News Bulletin

Read more here.

Hydraulic fracturing Community Bulletin #16

Sonia Harvey — Fri, 05 Apr 2019 01:28:57 GMT

Code of Practice open for Public Consultation

The Northern Territory Government has worked with independent scientific experts to develop a draft Code of Practice for Onshore Petroleum Activities in the Northern Territory and is now seeking public feedback.

The Code of Practice has been drafted to clearly define the standards and requirements that petroleum companies operating in the Northern Territory will need to abide by.

The Code of Practice incorporates a number of recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory; including offset and set back distances, multilevel water monitoring bores to be installed, and pressure testing of petroleum wells.

The requirements of the Code of Practice will also be incorporated in Environment Management Plans (EMPs). These requirements must be complied with by petroleum companies carrying out activities.

The draft Code of Practice will be out for public consultation for four weeks. The public can provide comment via the Have Your Say website until Thursday 2 May 2019.

To read the proposed draft Codes of Practice, please visit Have your say

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

NT drops gas development draft code for comment

Sonia Harvey — Thu, 04 Apr 2019 05:58:18 GMT

THE Northern Territory government has released its draft Code of Practice for onshore gas development a day after the Federal budget allocated $8.4 million over four years for feasibility studies in the Beetaloo Sub-basin, where Santos and Origin are expected to drill two wells each before the wet season.

The Top End government calls it "a major step forward in delivering a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting the environment".

The 120 page draft code, based around the 135 recommendations of the scientific inquiry into fraccing of last year, is available for public comment until May 2.

"Our government is taking action so that as the Territory's onshore gas industry emerges, our unique natural environment and existing industries are protected," the minister for primary industry and resources Paul Kirby said.

"The Inquiry said that the design and implementation of a robust regulatory framework was a fundamental precursor to the development of any onshore shale gas industry in the NT.

CSIRO senior research scientist energy Dr Cameron Huddlestone-Holmes called the code's development "technically sound and pragmatic".

"Over the past six months, working under the direction of the NT Government, we have collaborated with policy makers, industry representatives, and CSIRO's own technical experts to develop a Code of Practice that addresses the relevant recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing.

"The Code of Practice draws on similar regulatory instruments in other jurisdictions, NT government policy and the Independent Scientific Inquiry into Hydraulic Fracturing's final report," he said.

However, something to be noted is the code is not restricted to unconventional exploration but will apply "to all activities involved in both conventional and unconventional oil and gas exploration, appraisal, development and production and ancillary activities in the Northern Territory. This Code covers all petroleum activities," it said.

Energy News will update with more information soon.

SOURCE: Energy News Bulletin

The code can be downloaded here: https://haveyoursay.nt.gov.au/44527/documents/101939

Hon. Selena Uibo MLA confirmed to speak at the upcoming Indigenous Economic Development Summit

Sonia Harvey — Tue, 02 Apr 2019 04:08:39 GMT

Energy Club NT are proud to be a supporting partner of this years Indigenous Economic Development Summit being held in Darwin 15-17 May.

The Hon. Selena Uibo MLA, Minister for Aboriginal Affairs, Education and Workforce Training, NT Government has been confirmed to speak at the upcoming Indigenous Economic Development Summit (15-17 May | Darwin)

Joining her will be over 30 of the most experienced and influential thought leaders from Government, industry, land councils and the wider Indigenous community. The summit will showcase some of the most effective strategies to expand the Indigenous business sector and advance economic opportunities.

Key topics to be covered include:

· Government initiatives to advance Indigenous economic development: Hon Warren Snowdon MP, Eddie Fry and various Federal and State departments will explore policies and plans to boost the Indigenous business sector and increasing Indigenous engagement and participation through government procurement processes.
· Case studies on successful Indigenous start-ups and enterprise: Leverage lessons from successful entrepreneurs and discover effective strategies to build capability in Aboriginal businesses.
· Strategies to boost Indigenous employment and build impactful partnerships: In-depth discussions on how organisations can increase Indigenous employment and create strong partnerships with government and Aboriginal corporations to deliver better outcomes for Indigenous communities.
· Initiatives to boost economic development on local Aboriginal land: National Native Title Council and various land authorities across NT, WA, QLD and VIC will discuss boosting Indigenous industry development and commercial land development on local Aboriginal land.

Visit http://www.ied.aventedge.com/ for more information or register now here: http://elm.aventedge.com/ied-reg

Hydraulic fracturing Community Bulletin #15

Sonia Harvey — Mon, 25 Mar 2019 07:05:20 GMT

Progress towards developing a highly-regulated onshore gas industry: Petroleum Act Amendment Bill 2018 passes and new CSIRO Methane Monitoring Report released

Significant progress implementing the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory is continuing, with amendments to petroleum legislation passed in Parliament last week and the release of CSIRO’s second interim methane monitoring report for the Beetaloo Sub-Basin.

Passing of the Petroleum Legislation Amendment Bill 2018

Petroleum Legislation Amendment Bill 2018 addresses a number of key recommendations including:

Creating provisions for judicial review, with any person now able to have proceedings heard in the Supreme Court to challenge the lawfulness of particular decisions or determinations under the Petroleum Act 1984 and Petroleum (Environment) Regulations 2016 if they believe the legal process was not followed correctly.
Ensuring gas companies applying for an exploration permit or production licences must be a “fit and proper person”, with past history and performance taken into consideration.
Enforcing adherence to mandatory Codes of Practice under the Petroleum (Environment) Regulations 2016.

The mandatory Codes of Practice will be vital to the strong regulatory regime being implemented, addressing well integrity, well decommissioning and abandonment, methane monitoring, surface activities and wastewater management.

These amendments, along with the implementation of other recommendations summarised in table 16.1 of the Final Report of the Scientific Inquiry into Hydraulic Fracturing, will allow exploration to commence this year.

Release of CSIRO’s Ground Survey Monitoring Baseline Emissions in the Beetaloo Sub-basin

CSIRO has published a second interim report following its second round of monitoring of baseline methane emissions in the Beetaloo Sub-basin.

The Inquiry recommended that baseline monitoring of methane be undertaken ahead of the granting of exploration approvals for unconventional gas under recommendation 9.3. The NT Government commissioned the CSIRO through the Gas Industry Social and Environmental Research Alliance (GISERA) to conduct baseline methane monitoring in the Beetaloo Sub-basin.

The CSIRO’s second interim report presented data from surveys conducted over a nine-day period during the fire season between the 6 and 15 November 2018. The first published report presented data from surveys undertaken earlier in the dry season. Additional surveys were conducted during the wet season in early 2019, with findings to be presented in a third report in the coming months.

The surveys of atmospheric methane concentrations within the Beetaloo Sub-basin region were conducted using two gas analysers mounted in a four-wheel-drive vehicle. Vehicle surveys covered approximately 5,300 km on trafficable roads and tracks during the nine-day survey period.

Most of the survey areas include pastoral land, crown land and exploration leases. Where accessible, targeted surveys made during the first survey were repeated at 10 of the 11 plugged and abandoned or suspended petroleum wells, and 16 of the 21 water bores visited during the first survey, and three additional water bores.

The interim report found that overall the majority of methane concentrations recorded during the surveys were within the range of 1.77 to 1.85 parts per million (ppm) with a median value of 1.81 ppm, which is very close to normal background concentrations expected in rural or natural areas, of about 1.8 ppm. This was similar to the results from the first survey.

Isolated pockets of slightly elevated methane concentrations were observed in some areas; the sources of these were identified as grazing cattle, urban areas, pipeline infrastructure and local fires. The observations were expected given these activities are known to generate emissions and were within expected ranges, being very low above background levels.

To read CSIRO’s latest Baseline Methane Monitoring Interim Report click here.

To access detailed information about key legislative and administrative changes, and the implementation of each specific recommendation, visit www.hydraulicfracturing.nt.gov.au

You can download Actions by Recommendation for a full overview of the implementation process.

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

Shell may become Oz renewable power retailer

Sonia Harvey — Wed, 20 Mar 2019 04:27:30 GMT

SHELL may move into power retailing in Australia suggesting plans for a “substantial” electricity business at a Bloomberg event in Sydney yesterday, with a focus on renewables as the Dutch oil major sees increasing electrification of the power sector.

The plans are part of its switch to lower carbon energy, though it apparently still sees a future for gas in industry and across the developing world.

"For us to remain relevant, if we are no good at low-carbon power, we will lose our customer face business. That would be a shame because we are really good at it," global head of gas and new energy Maarten Wetselaar said, according to media reports.

"It will depend a bit on the opportunity set in Australia and how quickly we want to have all the pieces of the puzzle together, but I'd be very disappointed if we don't have an integrated power business in Australia in the course of a decade, and if we're going to have it, it might as well be substantial."

"We think there is value to be had on the generation side, the solar farms, wind farms and storage solutions, and the ways with which gas can plug the gaps.

"You add in the customer side …and trading in the middle…. and you can make value in all three bits and then you make some value by connecting all three," he said.

He suggested in two decades time houses would be fully electrified for all heating and cooling purposes and said "the provision of electrons" to retail, commercial and industrial customers was part of Shell's longer term strategy.

Earlier Shell announced it was purchasing Germany's sonnen, a battery company.

In February at a Melbourne Mining Club speech Shell Australia chair Zoe Yujnovich also announced plans for a 120 megawatt solar plant for its operations.

"On the drawing board have well-advanced plans for our first solar project − a 120-megawatt solar plant consisting of about 400,000 solar panels," she said.

Sonnen, meanwhile, put Germany's largest virtual battery into operation, based on a network of home electricity storage systems, though what the oiler paid was not disclosed.

Source: Energy News Bulletin

Read more here.

Hydraulic fracturing Community Bulletin #14

Sonia Harvey — Wed, 20 Mar 2019 02:46:04 GMT

The third meeting of the Onshore Shale Gas Community and Business Reference Group (Reference Group) took place in Darwin on 12 March 2019.

Established to provide a forum for government to seek advice and share information, the Reference Group discussed the suite of regulatory changes introduced to date, further changes to come, and the overall progress of implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

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

an Industry Development presentation, including an overview of lessons learnt throughout the development of the shale gas industry in Pennsylvania, USA – presented by Director Tom Murphy from the Penn State Marcellus Center for Outreach and Research (MCOR), via videolink;
an update on planned exploration activities for the 2019 dry season, and an insight into how the new regulatory regime has impacted industry – delivered by Origin and Santos Industry representatives;

The Reference Group discussed the current status of regulatory changes and key reforms and noted that significant progress has been made to date.

Having already provided input into the Quarterly Progress Report to December 2018, the Reference Group discussed key priorities for Government for the rest of 2019 as well as upcoming public consultation and engagement activities.

The Reference Group will meet again in May 2019.

A communique from the meeting has been published and will be available here

The CBRG meets 4 times per year and includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government.

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

To read more about the legislative changes that have been progressed to date, please visit Community Bulletin 12

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

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

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

Contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Parliament Week Two: Delivering Important Legislative Changes

Sonia Harvey — Mon, 18 Mar 2019 04:31:44 GMT

Office Minister Natasha Fyles

Parliament continues in the Northern Territory this week, with Parliament set to debate the Petroleum Legislation Amendment Bill 2018. The Bill includes reforms needed to implement recommendations from the Pepper Enquiry, which will go towards allowing a well-regulated hydraulic fracturing industry to develop.

Parliament will also debate the Electoral Legislation Amendment Bill 2018, which delivers on the Government’s election promise to return to full preferential voting for Northern Territory elections.

Two bills will be introduced and passed on urgency this week, to make important technical amendments to current legislation.

The Criminal Code Further Amendment Bill 2019 will address a shortcoming in legislation that could affect the prosecution of historic child abuse cases.

The Youth Justice Act Amendments Bill 2019 will clarify and tighten the existing framework for managing safety and security risks within youth detention centres.

Other Bills for introduction during sittings this week are:

The Youth Justice and Related Legislation Amendment Bill 2019
The Care and Protection of Children Amendment Bill 2019
The National Disability Insurance Scheme (Authorisations) Bill 2019

Quotes from Leader of Government Business, Natasha Fyles:

“The Territory Labor Government continues to deliver for Territorians by introducing a number of Bills that will create jobs and generational change, and help us build safer, fairer and stronger communities.

“A fair and just legal system is important for all Territorians, and the Criminal Code Further Amendment Bill 2019 will help us better achieve that for victims of historic child sex abuse cases.”

Media Contact: Leanne Hudson 0427 687 079

Creating Jobs: Confidence in Territory’s Mining Future

Sonia Harvey — Mon, 18 Mar 2019 04:22:14 GMT

Office Minister Paul Kirby

The Annual Geoscience Exploration Seminar (AGES) kicks off in Alice Springs today with the highest amount of registrations since 2013, underpinning increased confidence in the Territory’s resources sector.

The Territory’s premier mineral and petroleum exploration event, the two-day AGES gathering has already received registrations from around 250 people, making it the best attended AGES conference in six years.

More than 50 exploration companies from around Australia and globally are sending delegates to AGES, including some that are looking at investing for the first time in the Northern Territory.

Minister for Primary Industry and Resources, Paul Kirby said the Territory’s exploration sector is growing, driven by strong exploration for commodities such as zinc, copper, gold and lithium, and AGES was an opportunity for the industry to share information on exploration results and new discoveries.

The seminar comes off the back of some encouraging new data released by the Australian Bureau of Statistics (ABS) showing that:

The Territory’s mineral exploration expenditure in the 2018 calendar year was $123.2 million – up 35 per cent on 2017.
The NT’s December 2018 quarterly mineral exploration expenditure of nearly $40 million was the strongest quarter of exploration in the Territory since the mining boom days of 2012.

The ABS stats build on the Territory’s already strong results from financial year 2017/18 where the value of mineral production in the NT reached a record $4.49 billion – a 24 per cent increase on the previous year and the first time the value of the Territory’s mining sector has passed the $4 billion mark.

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

“Our Government will continue to support the Territory’s resources sector – driving investment into the Territory, creating local business opportunities, and delivering local jobs.

“Under the Territory Labor Government, there is confidence in the resources sector – with record values of mineral production in the Territory, increasing minerals exploration activity and certainty for the future of onshore gas exploration.”

Media Contact: Carl Pfeiffer 0417 910 720

"Extraction of lithium from oil and gas well sources is a broad paradigm shift"

Sonia Harvey — Thu, 07 Mar 2019 08:08:18 GMT

One of Eureka’s water treatment facilities MGX Minerals and Eureka Resources are planning a joint venture to extract lithium from water produced at non-conventional oil and gas sites in eastern US.

he pair signed a letter of intent to form an exclusive JV, planning to use MGX's "rapid lithium extraction technology" at Eureka's treatment plants to recover the battery material ingredient.

Eureka said it converted 10,000 barrels a day of "produced water", from oil and gas operators in the Marcellus and Utica shale formations, into valuable co-products including fresh water and high-purity sodium chloride.

"Through this joint venture, Eureka will begin extracting lithium as well," the companies said.

MGX president and CEO Jared Lazerson said the JV would not only look to install an initial rapid recovery system immediately but viewed it as "the first step in executing the strategic vision of petrolithium".

"The extraction of lithium from oil and gas well sources is a broad paradigm shift for the energy sector," he said.

Source: Energy News Bulletin

Read more here.

Montara acquisition triples Jadestone's output

Sonia Harvey — Thu, 07 Mar 2019 07:05:40 GMT

JUNIOR producer Jadestone Energy has released its 2019 guidance ahead of announcing its full year results, and expects its overall production rates to triple thanks to its recent acquisition of the Montara oil field in offshore Western Australia.

Jadestone secured 100% of Montara from PTTTEP recently, adding it to the Stag field in northwest Western Australia and its pre-development and exploration assets in Vietnam and parts of Southeast Asia.

Average Montara production over the last month reached a rate of 15,369 barrels of oil per day, following some flush production from Montara's restart and continued natural flow from the Skua-11 and Swift-2 wells.

Average unit production from both Montara and Stag costs between US$21-24 per barrel, the junior reported.

Jadestone estimates this year oil output across its producing assets will average between 13,500-15,500bopd.

"Following our acquisition of the Montara asset, offshore Australia, we have tripled production, all of it high quality and premium-priced oil from offshore Australia, and are making good progress on a significant development project in Vietnam, which we expect to sanction this year," Jadestone CEO Paul Blakeley said.

"As we increase our influence and control over the Montara asset, in preparation for taking over operatorship, we are identifying more opportunities to generate value for shareholders, including innovative ways to add reserves and resources, while optimising both production rates and operating costs."

Source: Energy News Bulletin

Read more here.

Hydraulic fracturing Community Bulletin #13

Sonia Harvey — Thu, 07 Mar 2019 06:42:18 GMT

The second quarterly update on implementation is now available to view online.

This second report provides detail on the status of implementation as at 31 December 2018. The staged approach to implementation of the recommendations is provided in a narrative format under the six reform areas listed in the Implementation Plan:

Strengthening Regulation
Ensuring Accountable Industry Practice
Safeguarding Water and the Environment
Respecting Community and Culture
Maximising Regional Benefits and Local Opportunities
Planning for Industry

To read the second quarterly report and updates on the implementation of all recommendations, please visit Hydraulic Fracturing Progress.

The Independent Officer overseeing the implementation of the recommendations, Dr David Ritchie, has provided comment on the progress of implementation of the recommendations outlined in the quarterly report. Read Dr Ritchie’s advice here

The third Onshore Shale Gas Community and Business Reference Group (CBRG) meeting will be held in March 2019. The meeting will include:

Web Presentation by Marcellus Center for Outreach & Research, USA, about lessons from the industry development in the USA;
Presentation by industry representatives about exploration plans for 2019; and
Progress report on implementation of recommendations, detailed briefing and feedback on policy issues

The CBRG meets 4 times per year and includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government.

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

A copy of the communique for the third CBRG meeting will be available online following the meeting. Read the communiques of previous meetings here

To read more about the legislative changes that have been progressed to date, please visit Community Bulletin 12

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

To read the Implementation Plan or access additional information regarding the progress of implementation, please visit hydraulicfracturing.nt.gov.au To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Stimulating the Mining Industry, Creating Jobs

Sonia Harvey — Thu, 07 Mar 2019 00:25:10 GMT

Minister Paul Kirby

Applications are open for the latest round of collaborative grants for exploration drilling and geophysics in the Northern Territory, an NT Government initiative which will help to create jobs and provide economic benefits.

The Geophysics and Drilling Collaborations program provides collaborative funding of 50 per cent for up to $125,000 per project of the total costs for drilling and geophysical programs by industry. The projects must be in areas of the NT where there is a lack of geological information.

The collaborative grants program is part of the Northern Territory Government’s $26 million Resourcing the Territory initiative, which includes geoscience and industry stimulus programs to maximise resources exploration in the NT.

With an aim to address gaps in the critical understanding of the geology of the NT, the collaborative grants program will encourage projects that may open up new areas for exploration and ensure the data is made available to the wider exploration community.

Now up to its 12th round of collaborative grants, 2018 saw a record number of applicants received for the program, with 15 projects from 12 different companies potentially receiving more than $1 million in funding.

The Geophysics and Drilling Collaboration project funding is for programs to be undertaken during 2019, and applications will close on 15 April 2019. Guidelines and assessment criteria can be found at www.minerals.nt.gov.au/collaborations.

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

“The Territory Labor Government’s number one priority is jobs.

“Initiatives like this increase the Territory’s profile as a resources investment destination and will bring in investment and exploration expenditure.

“Research shows the economic return on programs like this is ten times more than what the NT Government spends on the initiatives themselves.”

Media Contact: Carl Pfeiffer 0417 910 720

Hydraulic fracturing Community Bulletin #12

Sonia Harvey — Fri, 01 Mar 2019 07:22:37 GMT

Regulatory Reform of Petroleum Activities

Regulatory reform of the onshore gas industry reached an important milestone on Wednesday (27 February 2019) with the Minister for Environment and Natural Resources (the Minister) assuming responsibility for environmental regulation of the onshore petroleum industry.

This recent change to the Administrative Arrangement Order, has occurred in accordance with Recommendation 14.34 of the Final Report:

That prior to the grant of any further exploration approvals, in order to ensure independence and accountability, there must be a clear separation between the agency with responsibility for regulating the environmental impacts and risks associated with any onshore shale gas industry and the agency responsible for promoting that industry.

With this change, the Minister now holds responsibility for approval of and compliance with Environment Management Plans (EMPs), the primary environmental approval for petroleum activities under the Petroleum (Environment) Regulations 2016, and the environmental harm offences within Part V Division 2 of the Petroleum Act 1984.

Government remains committed to implementing all 135 recommendations in the Final Report from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory and this separation of responsibilities delivers on a key recommendation of the Final Report.

Petroleum companies with granted petroleum interests (such as Exploration Permits or Production Licences) are required to submit an EMP for assessment and the Minister must approve the EMP before any regulated activities can occur. Regulated activities are defined in the Petroleum (Environment) Regulations 2016 as activities which have an environmental impact or environmental risk and include seismic surveys, drilling of wells and hydraulic fracturing.

The Minister for Primary Industry and Resources will continue to hold responsibility for all tenure related matters under the Petroleum Act 1984, petroleum resource management and operational approvals including well operations.

Having a clear separation between the Minister promoting the Industry and the Minister responsible for regulating environmental impacts of the Industry will ensure the Territory has a robust and transparent regulatory framework that enables the onshore gas industry to develop in a manner that protects the environment and provides certainty to industry and the community.

Since October 2018, a number of Legislative and administrative changes have been progressed, including;

Water Legislation Amendment Bill 2018 passed through the parliament that will ensure that the requirement for water licensing and permits to access water resources will apply to mining and petroleum activities; along with updating offences and penalties (recommendation 7.1);

Passing of the Environment Protection Authority Amendment Bill 2018, providing the Northern Territory Environment Protection Authority (NTEPA) additional members with specialist skills and experience in the assessment and management of the environmental impacts of onshore gas development, positioned to deliver independent expert advice to the Minister for Environment to inform decision making (Recommendation 14.34);

Introduction of the Petroleum Legislation Amendment Bill 2018 to the Legislative Assembly in November 2018, with proposed amendments to ensure petroleum companies, as applicants, are ‘fit and proper’ to hold exploration permits or production licences (Recommendation 14.12); providing provisions for open standing for judicial review for decisions made under the Petroleum Act 1984 and Petroleum (Environment) Regulations 2016 (Recommendation 14.23); and ability to ensure codes of practice that are established are enforceable by law and that companies can be penalised if they do not abide by them (recommendation 5.1); The Scrutiny Committee report is due 12 March 2019; and

The amendments to Petroleum (Environment) Regulations 2016 ensure that all draft Environment Management Plans for the drilling of petroleum wells and hydraulic fracturing activities, must be published in print and online and available for public comment prior to Ministerial approval, and that all comments made on draft Environment Management Plans must be published online (recommendation 14.15); that cumulative impacts are given consideration (recommendation 14.19); that all notices and reports of environmental incidents and reportable incidents are published online (recommendation 14.16); and that hydraulic fracturing fluids proposed to be used are disclosed and published and flowback and produced water composition must be reported and published (recommendation 7.10).

Territorians will now have the opportunity to comment on Environment Management Plans for drilling of petroleum wells and hydraulic fracturing before they are considered by Government. The Minister will be bound by law to consider the comments before making a decision to approve or refuse the Environment Management Plan.

An Environment Management Plan will only be approved if the Minister for Environment and Natural Resources is satisfied that certain approval criteria have been met. Click here to access the fact sheet about Environment Management Plans.

To read more about the legislative changes that have been progressed to date, please visit Community Bulletins
To access the Administrative Arrangements Order, please click here
To read the latest from the NTG Newsroom, please visit NTG Newsroom

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

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

Contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Zenith favouring build, own, operate after strong half year

Sonia Harvey — Thu, 28 Feb 2019 08:23:57 GMT

REMOTE power specialist Zenith Energy has secured $40 million in additional corporate debt facilties two days after releasing half-year results that showed growth from its move from engineering, procurement, construction specialist to a build, own, operate model.

The money will be used on capital expenditure on new and existing projects, with some left over for acquisitions and general corporate spend.

The company has been able to gain an overall reduction in associated funding costs as well as the extend the debt maturity date.

Yesterday the company announced it had received certification of full diesel completion after satisfying diesel performance testing requirements at the 62 megawatt power station it built for Newmont Mining's; Tanami gold mine.

It will now begin commissioning the Wartsila gas generation capacity before testing the full completion performance testing in the weeks to follow.

Meanwhile during its half year results of Tuesday it reported 61% growth in BOO megawatt growth over the previous corresponding period, a 53% growth in BOO revenue compared to the last period, 123% growth in BOO EBITDA, and 19% growth in total megawatts under control from 395MW to 428MW over the period.

Group net profit after tax was down $4.8 million compared with the previous period thanks to what Zenith calls a "refocus on growing BOO operations".

PP&E increased from $76 million in the second half of financial 2018 to $114 million in the first half of this financial year and inventory increased fro $700,000 to $12 million

Source: Energy News Bulletin

Read more here.

Santos releases climate change strategy focusing on gas development

Sonia Harvey — Fri, 22 Feb 2019 08:20:31 GMT

SANTOS yesterday released its climate change report for 2019, the same day it released its full year 2018 financial report, and put its case for a low carbon future with a focus on gas and a goal of becoming completely emissions free by 2050. This is the company’s second climate change report.

The company's vision is to be Australia's leading onshore gas company by 2025 and grow its gas portfolio "safely and sustainably, in partnership with communities," and in tandem play a leading role in the reducing global emissions.

Santos said its strategy is economically resilient under all of the International Energy Agency's Energy Technology Perspectives 2017 scenarios.

"Our climate change policy fits with both our vision to be Australia's leading onshore natural gas company by 2050, and with our purpose to provide sustainable returns for shareholders by supplying reliable, affordable, clean natural gas to improve the lives of people in Australia and Asia," Santos managing director and CEO Kevin Gallagher said.

The report outlines the company's three medium-term carbon targets, which it expects will be achieved by 2025, centring on the role of gas in reducing emissions.

"The three targets look to reduce emissions from our operated activities and work on step-change technologies with the potential to provide significant carbon offset opportunities."

Target one is the ‘Reduction of global emissions through LNG export growth' and will see the company grow LNG gas exports to at least 4.5 million tonnes per annum by 2025 to "contribute to the growing demand for clean gas" and will displace the equivalent of 15% of Australia's total cumulative coal emission reduction target over the next five years.

The company said that overall, Australian LNG exports could reduce global emissions by up to 300 million tonnes of carbon dioxide per year three times that of Australia's annual emission reduction target under the Paris Agreement.

Target two will be to economically reduce emissions from the company's base operations by more than 5% across existing sites in the Cooper Basin and Queensland.

This equates to approximately 400,000 tonnes of carbon dioxide emissions per annum.

Source: Energy News Bulletin

Read more here.

Lack of Australian rigs a fallacy: Senex CEO

Sonia Harvey — Fri, 22 Feb 2019 00:01:10 GMT

THE last down turn in onshore drilling work at the start of last year saw rig contractors park their fleets until the market bounced back, but now that it inevitably has explorers are cautious that a lack of experienced hands could be having a negative impact.

Received wisdom suggests rig demand is outstripping supply but it could be the people who operate them that are missing.

Speaking during a half-year results conference call Tuesday Senex Energy CEO Ian Davies said that the view that rig availability is tight was not an issue facing the sector.

"I think it is something that is a little opaque in the market. We're out for tender as we speak for rig lines and well services. We understand exactly which rigs are available and it's a fallacy that there are no rigs available.

"There are plenty of rigs, it is just lining up the actual rigs with the work program and timing. And we've got that well in hand.

He said experienced rig crews were few and far between, something that came down to the low oil price in recent years which saw experienced hands leave the industry for good.

"I think [that it is] important to get the good rig hands and the good operators back into the industry because the last time there was a down turn in the industry we lost a lot of people - and they were lost permanently - so you think rig hands in particular the crews that operate the rigs we had a permanent drain across the industry the last downturn.

"We're seeing some of them come back, and I think one of the things to note when people talk about a lack of rigs, its generally a lack of rig crews that has actually been the issue more than anything else," Davies said.

He also welcomed recent wage growth, something he touched on in the recently released quarterly results also.

"We are seeing wage inflation across the industry [which] I actually see as a positive because the industry was zero to negative wage growth over the past few years," Davies said.

"In terms of cost inflation, the fact that we're out to tender will bear the results of any cost inflation out. But what we're not seeing material cost inflation across the board," Davies said.

While rig availability is not an issue facing Senex, Davies did make the observation Longer term contracts like the one Senex currently has out for tender has the potential to encourage people to return to industry, something the company says is already having an effect.

A Senex spokesperson told Energy News today that while drilling companies lost people over the past few years, they retained enough experienced professionals and are continually developing their workforce.

MAJOR OIL AND GAS PLAYERS HEADLINE PERTH EVENT

Sonia Harvey — Thu, 21 Feb 2019 00:36:42 GMT

Perth will again host the region’s biggest annual outlook event for the oil and gas sector in March at the 38th Australasian Oil and Gas (AOG) Exhibition & Conference.

The three-day Exhibition and Conference will cover a range of topics centred around the theme ‘An Energy Shift’, highlighting changing trends in the industry such as the rising confidence of the oil and gas market; effective transitioning of projects from construction to operations and maintenance; new uses for liquefied natural gas (LNG); and new energy.

The conference program includes updates and insights from Woodside Energy, Chevron Australia, NERA, Deloitte and Scottish Development International and the Department of Jobs, Tourism, Science and Innovation.

“The industry has had a tough few years; however, a recovery in global oil prices, Australia’s world dominance of LNG exports and a resurgence in investment in the sector have set the scene for a vibrant program across all three forums,” said AOG Event Director Bill Hare.

The vast AOG exhibition space will showcase more than 250 companies and provides a unique opportunity for policymakers, operators and service providers to meet, network and debate the future roles for natural gas and oil. Mr Hare said for the first time in 2019, AOG would emphasise a targeted focus on drilling and completions featuring both technical presentations and a dedicated exhibition zone.

“This exciting space has been added due to interest from past visitors and will feature the latest products, technology and services in drilling and well completion from Halliburton and the Society of Petroleum Engineers to name a few,” continued Mr Hare.

The AOG Exhibition & Conference – which is supported by Federal and WA State Government, the City of Perth and the local oil and gas industry – is considered one of the leading events on the global oil and gas calendar.

“Last year the conference and exhibition attracted more than 8,000 oil and gas leaders, policymakers, experts, innovators and educators from 45 countries – including official delegations from Norway, Scotland, Belgium, Malaysia, Poland and the UK. We are expecting to again host many delegations from leading global oil and gas producing regions in 2019, and this provides a unique opportunity to liaise with these influential decision-makers.

AOG 2019 will run between 13 -15 March at the Perth Convention and Exhibition Centre and is free of charge. For more details, visit the AOG website or register for a free AOG visitor pass, here.

Energy market 'continuing to strengthen': Valmec

Sonia Harvey — Wed, 20 Feb 2019 22:24:56 GMT

VALMEC reported revenue of $47.7 million for the half-year ending December with EBITDA of $3.2 million and says it has a strong order book heading into the second half of the financial year and then into 2020.

It expects total financial 2019 earnings to be higher than the previous year.

Valmec qualified its results however, saying, "whilst strong is reflective of the delayed start to construction activity across Valmec's energy clients.

"A significant increase in construction activity is expected in the second half if he year, underpinned by over $40 million of new contracts secured since December 2018, including the recent award of the Jemena Atlas gas pipeline project," it said.

The Atlas project will be worth $22.1 million, renewal of long term services contracts with Origin Energy's Australia Pacific LNG export consortium is worth $15 million, and APTS testing and inspection services on the Tanami gas pipeline for MPC Kinetic was worth $4.7 million.

Australia Gas Infrastructure Group announced the pipeline went into operation yesterday.

Revenue from the energy construction segment was $23.1 million, while services was up over 43% from the previous corresponding period at $24.4 million.

It has an order book of over $80 million with the company suggesting a "robust tender pipeline across new and existing clients".

Managing director Steve Dropulich said that "with operating conditions within energy and infrastructure markets continuing to strengthen Valmec has been able to grow its longer term order book and tender pipeline".

“You can’t be what you can’t see” – women leading the charge for STEM careers

Sonia Harvey — Tue, 19 Feb 2019 01:42:06 GMT

To celebrate the United Nation’s 4th International Day of Women and Girls in Science Brighter hosted a roundtable discussion with experts to discuss what can be done to further encourage young girls and women into STEM careers.

Strong role models, mentors and consistent exposure to science from an early age are just some of the ways we can encourage young girls into STEM jobs, according to women who are trailblazers in their own respective careers.

To recognise the United Nation’s International Day of Women and Girls and Science, the Brighter program hosted a roundtable discussion with women who are at different points in their STEM careers – some studying, some leaders and emerging leaders, some already retired.

Moderated by Director – Communications for the Brighter program, Sarah Browne, the discussion was centred on the initiatives already in place to promote STEM among women and young girls, and what else can be done to further encourage them to pick a STEM career.

Verity Blackman, board member for the UN Women National Committee Australia spoke to the group about the importance of role models and working with children, right around the world, to provide them with opportunities to try new things.

“You can’t be what you can’t see – this is why role models are critical for young people.”

Sue Barrell, vice president of Science Technology Australia, and former Chief Scientist for the Bureau of Meteorology said:

“We need to get everyone – boys and girls – on a level playing field when it comes to STEM and build their confidence.”

Sarah Browne said: “It was a fantastic opportunity to get these women, from different backgrounds and experiences, to share their story.”

“What was apparent is that everyone around the table agreed on the same thing – young children, and young girls in particular, need a consistent and strong support network to introduce them to the big, interesting world of science, technology, engineering and mathematics,” she said.

“This should start from an early age so young girls go on to finish high school, they are confident to pick an engineering degree at university or go on to study their STEM-based PhD without fear of being overlooked or dismissed because of gender.”

Virtual DLNG – the future of collaboration

Sonia Harvey — Mon, 18 Feb 2019 01:46:31 GMT

The DLNG team has taken innovation to a new level, trialling 3D visualisation technology ‘Virtual DLNG’ which will revolutionise Perth-Darwin collaboration.

Read more here.

State of the art photographic scanning was recently completed at DLNG creating a google-maps-style simulated walkthrough of the plant. This software will allow designers and engineers to virtually ‘visit’ DLNG at any time, enabling unprecedented facility access.

The idea was born when Reza Dashti, Project Engineer, created a 3D tour for his rental property to help conduct inspections. When sharing this with his colleagues, they commented “we need this for DLNG!” and the idea was born. Innovation can stem from something as simple as a chat between workmates.

Collaboration in action – Perth and Darwin staff using Virtual DLNG

A collaboration room at the Integrated Operations Support Centre in Perth has been set up with a 360 degree camera, allowing multi-site meetings to run as though everyone is in the same room. Virtual DLNG enables immediate access for engineers and designers across locations to view plant equipment in a matter of minutes, improving efficiency in the inspection and decision making process. Furthermore, this creates cost saving benefits, decreases HSE risk to personnel, while optimising site visit requirements.

The software has embedded ‘tagging’ functionality allowing for equipment, scopes of work, engineering documents and even videos to be interactively tagged into the ‘virtual tour.’ Examples include hyperlinks to controlled documents (e.g. SAP), an embedded time-lapse video showing how to safely change out a turbine or filter, or even access to view a past scaffold build.

Virtual DLNG visualisation

Although the 3D visualisation was initially produced for the team working on DLNG backfill, there is limitless potential for innovative process improvements within other functions of the Business Unit. From providing a Perth-based accountant an understanding of the facility they support, to enhancing site inductions for shutdown crews, Virtual DLNG is the future of ABU-West. The Backfill team are also continually looking for more ways to create value with the tool, including using it to create a true One Team project with the Engineering, Procurement and Construction contractors.

Members from the Timor-Leste process team travelled to Perth to help tag the scopes of work within the visualisation. Their assistance will help finalise Virtual DLNG as a tool for internal and external stakeholders to fully understand the scopes and associated physical constraints.

Canavan has a plan, and it involves the Beetaloo

Sonia Harvey — Mon, 18 Feb 2019 00:52:56 GMT

THE move comes as the Morrison government decides to scuttle its ‘big stick’ energy plan until after an election but it’s good news for explorers as the minister for resources underlines how much energy exports to a growing Asia add to the economy.

It outlines how the government aims to support develop new resources and markets, support jobs, attract investment into the wider Australian resources sector and "share the benefits of success with more regional communities".

Rural and regional communities have increasingly become flashpoints over concerns about the impact of large resources projects, particularly new unconventional oil and gas fields, and coal mines, on the water table.

"There is a bright future for the resources sector given the economic growth occurring in our region," Canavan said.

"By 2030, Asia will produce more than half the world's economic output, consume 40% of its energy and be home to a middle class of almost 3.5 billion people.

"Given this growth, and if Australia can maintain its global share of commodity production, at least 24,000 new direct mining jobs could be created, along with the broader prosperity those jobs will bring."

The Australian parliament has three days left to pass legislation before it will be dissolved ahead of the budget and a general election, likely in mid-May, when the Coalition, which has burnt through two prime ministers, faces an electoral drubbing if polls are accurate.

In the remaining sitting days the delivery of the national resources statement, a promised goal of the government's Resources 2030 Taskforce, is unlikely to receive much attention from MPs, with the government keen to focus on boarder security, encryption laws and superannuation

Other legislative items such as a resources and energy policy issues and banking reforms are being sidelined on the parliamentary agenda.

Despite that, Canavan has promised to start work immediately by progressing some elements of the statement in collaboration with the states and territories through apparatuses such as the Council of Australian Governments Energy Council.

He also has plans for his favourite prospective region, the Northern Territory's Beetaloo Basin, saying the plan would support "the development of new resource basins through cooperation with state and territory jurisdictions, like our Memorandum of Understanding with the Northern Territory on the development of the Beetaloo Basin.

"This includes an agreement to establish a new critical minerals work program to boost exploration, develop a data strategy to de-risk investment decisions, and build community confidence in the sector," he said.

Speaking this morning, Canavan said the government would look to promote a national resources brand for Australia, continue its investment in pre-competitive data such as seismic and aero-magnetic surveys.

Source: Energy News Bulletin

Read more here.

Hydraulic fracturing Community Bulletin #11

Sonia Harvey — Fri, 15 Feb 2019 01:44:03 GMT

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Strengthening environmental management of the Territory’s petroleum industry
Strengthening regulation and increasing transparency was the focus of legislative changes made by the Northern Territory Government in the final months of 2018, building foundations for robust decision-making.

A suite of legislative amendments were made to bolster environmental management, including clearly separating the agency responsible for regulating the environmental impacts and the risks associated with onshore gas and the agency responsible for promoting the industry.

During the first quarter of 2019, the transfer of the authority for the Petroleum (Environment) Regulations and the Environmental Offencesprovisions of the Petroleum Act from the Minister for Primary Industry and Resources to the Minister for Environment and Natural Resources will take effect.

The Water Amendment Bill 2019 was introduced to Parliament during the February sittings. This Bill addresses some of the key recommendations of the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, delivering four of the 135 recommendations.

Introduction of the Water Amendment Bill 2019
The series of amendments proposed in this Bill, introduced on Wednesday, fulfils the Government’s commitment to strong environmental protections while supporting economic growth. The Bill also ensures that recommendations in the Final Report regarding relevant prohibitions are clearly legislated.

These prohibitions apply to the taking of surface water for petroleum activities, groundwater extraction close to landholders bores and the disposal of hydraulic fracturing waste to waterways and aquifers.

The Bill will not impede the recycling of water in hydraulic fracturing operations. This would improve water use efficiency and be managed through the risk assessment process associated with any Environment Management Plan approval.

Consultation on key aspects of implementation
Stakeholder consultation is underway and will continue in the first half of 2019 on key aspects of the implementation of the Final Report’s recommendations. Elements where consultation is underway or imminent include;

Publishing of draft hydraulic fracturing EMPs for public comment
The Petroleum (Environment) Regulations were amended and commenced 19 December 2018 to provide for the publishing of draft hydraulic fracturing Environment Management Plans involving well drilling or hydraulic fracturing for public comment and consideration of public comments by the Minister before granting approval.

Code of Practice
Codes of Practice have been drafted to clearly define the standards and requirements for gas company operations, as recommended in the Final Report. The Codes of Practice have been drafted to address a number of the recommendations;

Surface Activities Code of Practice
Well Operations Code of Practice
Wastewater Management Code of Practice
Methane emissions Code of Practice

The Codes of Practice have been developed by technical working groups. Draft Codes of Practice are undergoing independent third party peer review and will be released for public comment in early 2019. The Codes of Practice will be finalised soon after and will be made enforceable via legislation.

Water Extraction Licences for consideration and public comment
Water Extraction Licences by petroleum companies are now subject to the advertising, notification and assessment provisions of the Water Act. These provisions include the public advertising of a notice of intention that triggers a 30‑day period during which submissions can be made.

More information about the water extraction licensing process can be found at https://nt.gov.au/environment/water or by emailing the Water Resources Division of the Department of Environment and Natural Resources at water.licensing@nt.gov.au

The NT Government’s Water Licensing Portal provides information about all pending and current water extraction licences.

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

LOCAL LEADER HEADLINES AUSTRALIA’S PREMIER OIL AND GAS EVENT

Sonia Harvey — Thu, 14 Feb 2019 00:34:11 GMT

The 2019 Australasian Oil & Gas Exhibition & Conference is shaping up to be a must-see event for professionals in the energy sector, with local industry heavyweight, Woodside Energy, front and centre as this year’s official Platinum Sponsor.

Now in its 38th year, AOG will be held in Perth from 13-15 March, bringing together major players from across the globe and cementing the event’s status as the most important in the Australasian region.

As this year’s major supporter, Woodside will offer its valuable insights at a range of forums with a particular focus on effective transitioning of projects from construction to operation and maintenance, new uses for LNG and opportunities in renewable energy.

Headquartered in Perth, Woodside Energy is the largest Australian oil and gas operator, with an expansive global portfolio and a reputation for world-class exploration, development, production and supply capabilities.

Company representatives will be joined by some 8,000 oil and gas industry leaders, policy-makers, experts, innovators and educators from 45 countries. Official delegations from Norway, Scotland, Belgium, Malaysia, Poland and the UK will also be among the attendees.

Woodside was a key participant in the inaugural Collaboration, Subsea and Knowledge Forums at AOG 2017 and an important contributor in 2018. Woodside Chief Operations Officer Meg O’Neill said the company was looking forward to being part of the discussions once again in March.

“As we progress our Burrup Hub growth plans in Western Australia, we want to work with others across the resources sector, within government and the community. AOG is a great opportunity to hear from and speak to those people – from SMEs and start-ups, to innovators and academia and other industry partners,” said Ms O’Neill, who will be delivering a keynote address on the opening morning of the event’s Collaboration Forum alongside Hon. Bill Johnston MLA, Minister for Mines and Petroleum; Energy; Industrial Relations.

Event Director, Bill Hare, said having a company of Woodside’s calibre as a consistent voice highlighted the value that the Australian and global oil and gas sector placed on the annual exhibition and conference.

“The backing we’ve received from Woodside Energy and the wider industry and government has been huge and is a testament to the standing and importance of AOG,” he said.

The AOG event will be staged at the Perth Convention and Exhibition Centre. For more information, visit the AOG website or register for a free AOG visitor pass, here.

Protecting the Environment means Protecting Jobs - Water Amendment Bill 2019

Sonia Harvey — Wed, 13 Feb 2019 00:47:37 GMT

From Minister Eva Lawler's Office.

The Territory Government is better protecting our precious water resources by today introducing the Water Amendment Bill 2019.

This Bill addresses some of the key recommendations of the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, delivering four of the 135 recommendations.

The amendments fulfil Territory Government’s commitment to introduce strong environmental protections THAT support jobs.

A series of proposed amendments within the Bill will ensure that the Final Report recommendations for relevant prohibitions are clearly legislated.

The prohibitions apply to the taking of surface water for petroleum activities, groundwater extraction close to landholder’s bores and the disposal of hydraulic fracturing waste to waterways and aquifers.

The Bill will not impede the reuse of wastewater for future hydraulic fracturing operations. This would improve water use efficiency and be managed through the risk assessment process associated with any Environment Management Plan approval. It also won’t prohibit existing wastewater management practices undertaken by conventional petroleum producers.

The introduction of the Bill demonstrates the Territory Labor Government is serious about protecting our precious water resources that so many jobs rely on.

This is unlike the previous CLP Government whose water policy damaged our unique environment, destroyed trust in Government processes and cost the Territory jobs.

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

"Water is a precious resource and we need to manage it responsibly to ensure its sustainability. Protecting the environment creates jobs — good environmental policy, is smart economic policy.

"The sustainable use of the Territory’s water resources is crucial for the health of our rivers, aquifers and water‑dependent ecosystems and the values that we attribute to them as a community.

"It also crucial to protect the thousands of jobs in the tourism, fishing, cattle and agriculture industries that rely on the health of our water systems."

Media Contact: Carl Pfeiffer 0417 910 720

New Chief Executive Appointed to Key Business Role

Sonia Harvey — Tue, 12 Feb 2019 00:40:44 GMT

12 February 2019

Chief Minister Michael Gunner has today confirmed Mr Shaun Drabsch as the new Chief Executive Officer for the Department of Trade, Business and Innovation (DTBI), following a national recruitment process.

Mr Drabsch has extensive experience in both Government and private enterprise, including developing and implementing economic policy, infrastructure and major investment projects.

With previous experience in senior Government roles in Queensland and Canberra, he has worked on a number of Territory projects and initiative and in broad sectors including resources and energy, transport, agribusiness, education, and telecommunications.

He also brings deep experience with parliament, cabinet and budget processes, land tenure, procurement and stakeholder management and corporate governance.

Quotes from Chief Minister Michael Gunner

“Our number one priority is to create jobs for Territorians and the Department of Business, Trade and Innovation is a key driver of job creation.

“As CEO of DTBI, Mr Drabsch will apply his considerable skills to help grow the Territory’s economy, with oversight of the Territory’s Major Projects.

“With his experience in trade and investment attraction, innovation and economic development, I welcome this appointment and look forward to working with Shaun to develop the Territory to its fullest potential.

Media Contact: Cameron Angus 0404 021 192

Lock the Gate claims Beetaloo hopefuls secretly after oil

Sonia Harvey — Fri, 08 Feb 2019 05:32:26 GMT

FRACCING protest group Lock the Gate is accusing explorers in the Northern Territory of hiding their true motive for exploration activities, suggesting they are searching for oil and not gas in a misunderstanding of the term ‘liquids-rich’.

The protest group has condemned Origin Energy among other operators in the Beetaloo Basin, claiming that companies are hiding plans to frac shale oil and are misleading the public.

The basis for this seems to be the descriptor ‘liquids-rich gas', which was not explicitly defined during the Rachel Pepper-led scientific inquiry into fraccing that lifted the moratorium last year but imposed 135 recommendations for its safe practice.

"This is a case of resource companies and the NT (Michael) Gunner government pulling the wool over the eyes of NT residents," Lock the Gate coordinator Jesse Hancock said in a statement.

"Fracking companies can call it by any name they want but it's shale oil, and oil presents a much greater risk to communities, especially in terms of transportation," Hancock said.

The existence of oil in the Beetaloo is well known and there is little subterfuge around going it after - plenty want to - but Lock the Gate has conflated gas plays with separate oil ones in this case.

Origin told the Katherine Times that Lock the Gate have "simply misunderstood the phrase ‘liquids rich' gas."

Origin plans to appraise the liquids rich Kyalla shale Velkerri shale formations for liquids rich gas this year and also has an interest in developing the Hayfield Sanstone oil and condensate play.

The claims by Lock the Gate come as Federal resources minister Matt Canavan told reporters at a press conference in Darwin that the Beetaloo Basin remained the "best immediate prospect" for domestic oil production.

Source: Energy News Bulletin

Shell picks Crux-to-Prelude FEED partners

Sonia Harvey — Thu, 07 Feb 2019 05:34:21 GMT

SHELL has chosen Wood and KBR to perform front-end engineering and design for the Crux field development and tieback to the floating LNG vessel the Prelude in the Brose Basin 475 kilometres northwest of Broome.

Crux is 160 kilometres northeast of the Prelude field in the Browse Basin and has long been chosen by Shell and partners Seven Group Holdings and Osaka Gas as the primary source of backfill.

The proposal comprises a not-normally-manned platform that will operate five production wells in 165m deep water that will be tied back to the FLNG vessel with a 165km pipeline.

The facilities will dry the gas and export it via a new subsea pipeline.

Wood and KBR will deliver the services over 18 months, with teams based in Perth, with support from Wood's Kuala Lumpur regional base.

The teams will provide a single integrated FEED for the Crux topsides, jacket, export pipeline and subsea pipeline end manifold.

"This contract win to deliver the next generation of offshore facilities for Shell Australia demonstrates our unrivalled subsea pipeline expertise and offshore engineering capabilities," Wood chief executive Robin Watson said.

"Wood has extensive experience in delivering technically complex subsea engineering projects in Western Australia. We are committed to expanding our portfolio in the region, developing local content by investing in industry talent, resources and supply chain."

"KBR is committed to adding value to our customers. That's why we are delighted to partner with Wood to bring together two industry leaders to deliver one world-class complimentary team whilst continuing our long relationship with Shell and Perth, Australia," KBR president and CEO Stuart Bradie said.

Source: Energy News Bulletin

Antifracker Kirby a concern: Canavan

Sonia Harvey — Thu, 07 Feb 2019 00:28:50 GMT

APPOINTING a one-time antifracker as mining minister sends the wrong message to industry, according to federal Resources Minister Matt Canavan.

The appointment of former ETU organiser Paul Kirby as Territory mining minister last week raised eyebrows across the sector given his history as a strong opponent of fracking.

Senator Canavan said he was concerned by the “messaging” of the appointment.

“It comes back to the general principle that the general message coming out of this government is more regulation, more taxes, appointing ministers that don’t seem … to have a passion for the industry from day one,” he said.

“That cumulative effect does have an impact on investment.”

However he said he would give Mr Kirby the “courtesy of being able to prove he’s put that past behind him.”

“Everyone deserves a second chance in life, even people who’ve voted for the Greens,” Senator Canavan said.

Source: NT News

Oil and gas giant ENI to build Australia’s largest solar farm

Sonia Harvey — Thu, 07 Feb 2019 00:24:52 GMT

ITALIAN multinational oil and gas company ENI has entered the Australian Renewable Energy market with the purchase of Australia’s largest construction ready solar farm project near Katherine.

ENI said construction work on the solar farm was expected to start in the next few weeks, with an expected commercial operation date in the final quarter of this year.

The $40 million project will have about 75 ha of solar panels about 5km northwest from Katherine and create more than 100 jobs during construction. The project has already sealed a solar offtake deal with the NT Government owned utility Jacana Energy.

A power purchase agreement (PPA) was signed last year between Jacana Energy and Katherine Solar as part of a series of electricity market reforms to deliver lower cost and reliable power.

Considered one of the global supermajors, ENI has operations in 79 countries, and provides domestic gas to the Territory from its Blacktip gas field in the Bonaparte offshore basin off the northwestern coast of Australia.

It has a non-operated interest in the Bayu-Undan gas and condensate field and in the associated Darwin LNG plant. It is world’s 11th largest industrial company.

In a statement issued from Milan yesterday the company said the acquisition of the project from Katherine Solar Pty Ltd a joint venture between Australia’s Epuron and the UK-based Island Green Power will compliment the company’s existing assets in the region’s oil and gas sector.

“Once completed, the project will be the largest photovoltaic (PV) farm in the Northern Territory, consisting of the installation of 33.7 MWp (Mega Watt peak) PV panels, as well as a battery storage system with a capacity of 5.7 MVA/2.9MWh (Mega Volt Ampere and Mega Watt hour),” ENI said.

ENI said Epuron will have an active role in managing the solar farm once it is operational. Epuron already owns and operates solar power stations in the NT at Alice Springs, Yulara, Kalkarindji, Ti Tree and Lake Nash/Alpurrurulam.

“This project will contribute to the Northern Territory’s government goal to procure 50 per cent of its energy from renewable sources by 2030. Once operational, the PV farm will avoid around 63.000 tonnes/year of CO2 equivalent emissions,” ENI said.

Power from thousands of photovoltaic panels would feed into an upgraded substation in Katherine.

This will then flow through the Darwin network supplying 25 megawatts of green power.

Source: NT News

Jobs in the Pipeline: Commissioning Go Ahead for the Tanami Gas Pipeline

Sonia Harvey — Wed, 06 Feb 2019 04:51:09 GMT

Minister Paul Kirby's Office

Consent to commission means AGI Tanami can now test the pipeline by introducing gas at the pressure under which it will operate. Once testing is successfully completed and independently verified, the pipeline will be able to go into full operational mode.

The Tanami Gas Pipeline will provide gas to Newmont’s Granites gold mine located approximately 550km north-west of Alice Springs in the Tanami Desert. Historically the mining operations have had to rely on diesel to operate, which meant a pause in production if roads became impassable and diesel could not get through.

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

“The Territory Labor Government supports the delivery of job-creating infrastructure, so I am pleased to approve the next stage of works for the Tanami Gas Pipeline.

“Newmont’s Territory mining operations are some of the most successful gold operations in Australia. This pipeline will provide year-round, cleaner power – supporting existing jobs and creating the potential for more jobs.

“The Territory Labor Government will continue to focus on attracting private sector investment across the Territory, and on getting job-creating projects out of the ground as quickly as possible.

Media Contact: Leanne Hudson 0427 687 079

Supporting our Job-Creating Resources Sector: Top Line-Up for Premier Event

Sonia Harvey — Tue, 05 Feb 2019 07:44:11 GMT

Office of Minister Paul Kirby

The program for the Territory’s premier exploration event has been released, and this year’s Annual Geoscience Exploration Seminar (AGES) includes nine companies presenting on their successful exploration programs in the Territory.

AGES, which takes place in Alice Springs, promotes the growth of our job-creating resources sector by bringing together people from across the industry to share their expert knowledge, network, and learn about the very latest technology and discoveries in the Territory’s resources exploration.

Highlights of the program include:

Presentations on new findings and data from the NT Government’s record four-year, $26 million Resourcing the Territory exploration initiative
Discussions on data from major collaborative programs between the NT Geological Survey, Geoscience Australia and CSIRO
The latest updates on promising new base metal discoveries in the Aileron Province and the developing lithium deposits of the Bynoe field
Presentations on the geology and oil and gas potential of the Amadeus Basin
New insights into gold mineralisation and exploration success from the NT’s three main gold provinces
A pre-conference showcase by Geoscience Australia on new datasets acquired over the Tennant Creek-Mount Isa region as part of the Exploring for the Future program.

AGES also incorporates the Mining Services Expo, which showcases NT businesses and promotes Territory local contractors. The event will take place at the Alice Springs Convention Centre on 19-20 March, 2019. To find out more visit www.ages.nt.gov.au

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

“Our Government knows Territorians want safe, well-paid, local jobs. By supporting a strong and well-regulated resources sector, including through events like AGES, our Government is focused on delivering those jobs for Territorians.

“We have invested record funding into the resources exploration sector – $26 million over four years through our Resourcing the Territory initiative – creating more jobs for Territorians and more work for Territory businesses.

“This year’s AGES will provide the most up-to-date information on the Territory’s resources potential to investors and explorers, demonstrating why the Territory is a great place to invest and do business.

“AGES is also a chance for industry to hear about resources success stories, and the program this year includes presentations on successful findings in a range of commodities, including gold, lithium, cobalt, copper, oil and gas.

“Territory businesses that service the mining sector benefit from AGES too, as the Mining Services Expo runs alongside the main event, allowing them to showcase their capabilities to explorers and miners.”

Media Contact: Leanne Hudson 0427 687 079

Hydraulic fracturing Community Bulletin #10

Sonia Harvey — Tue, 05 Feb 2019 07:39:53 GMT

New Minister for Primary Industries and Resources appointed

Minister Paul Kirby was appointed the new Minister for Primary Industries and Resources by the Chief Minister on 31 January this year.

The Chief Minister said Minister Kirby has years of experience working with the oil and gas industry and has worked closely with Territory businesses since being elected to the Northern Territory Parliament in 2016.

The Chief Minister also announced that he would assume the Business and Innovation portfolio.

To view the full media release regarding the new Northern Territory Government Ministry please visit http://www.newsroom.nt.gov.au/mediaRelease/28641

More information

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

Here’s how a 100% renewable energy future can create jobs and even save the gas industry

Sonia Harvey — Thu, 24 Jan 2019 01:10:21 GMT

Looking for an interesting perspective on the gas vs renewables debate? Grab a cuppa and read more at The Conversation.

AGIG boss backs "bipartisan" hydrogen plans

Sonia Harvey — Wed, 23 Jan 2019 07:17:39 GMT

THE Australian Gas Infrastructure Group’s CEO Ben Wilson told Energy News he views hydrogen as a rare bright spot of bipartisan energy policy, with both the Opposition Labor and Coalition government supporting the development of a hydrogen industry in Australia.

Wilson welcomed Labor's announcement yesterday of $1.14 billion for development of a broad hydrogen industry, with $1 billion going to the Clean Energy Finance Corporation.

"We very much see this as a national strategy and welcome the momentum it brings," he said.

"We're very keen on hydrogen as a business, and COAG (the Council of Australian Governments) has been very supportive."

"I really see hydrogen as a candidate for bipartisan support," he said.

Last year the government announced $50 million of funding to a brown coal-to-hydrogen project in Victoria led by Kawasaki Heavy Industries worth an ultimate $498 million that aims to develop hydrogen that can be liquefied and shipped to Japan.

The CO2 left over from the conversion process would then be injected deep underground in a carbon capture and storage process.

Aside from mentions of ‘renewable' and clean industries and some funding for electrolysers Labor hasn't suggested whether its hydrogen will be ‘green' - made from water split into its parts via solar powered electrolysers - or ‘blue' - made from methane or coal and subject to disapproval from some environmentalists.

It also hasn't made a statement on the Victorian La Trobe Valley project.

Echoing the national energy guarantee proposed by then-energy minister Josh Frydenberg Wilson said "a technology neutral approach" to hydrogen was needed.

"We need emissions targets with affordability and I don't think we should be picking winners.

"We're very excited about green hydrogen but if you can produce it with carbon capture and storage then why not, if it's viable and can be successful and supports jobs in the La Trobe Valley."

Source: Energy News Bulletin

Read more here.

Labor plans $1.14B spend on hydrogen

Sonia Harvey — Tue, 22 Jan 2019 07:19:40 GMT

LABOR’S National Hydrogen Plan hopes to make Australia a world leader “in the burgeoning hydrogen industry – boosting jobs, exports, fuel security and reducing pollution in our energy, transport and industrial sectors”, the party said today in a pre-election pitch to Queensland voters.

Announced by a hi-vis-clad Bill Shorten, the plan has been roundly applauded by both the petroleum industry's lobby body, APPEA, and some environmental groups that have been critical of projects that link coal and hydrogen.

The $1.14 billion plan is wide ranging and will use existing LNG infrastructure in Gladstone, with plans to shore up transport and export, provide cleaner energy, and possibly up to 16,000 jobs.

If it wins the as-yet undeclared election Labor plans to invest $3 million to establish the National Hydrogen Innovation Hub in Gladstone.

Labor cites an International Energy Agency figure of a global hydrogen market worth US$215 billion by 2022.

Hydrogen is not naturally occurring on Earth, it has be made from something, and there are two types.

‘Blue' hydrogen is made from coal, or methane, the latter via a steam methane reforming process already used widely in the US. Hydrogen made from coal creates more carbon dioxide, which must then be dealt with via carbon capture and storage in order to ameliorate emissions.

Green hydrogen uses electrolysers - which are still expensive equipment - fuelled by renewable power to split water into its component parts.

"From transforming transport, to providing secure, affordable and clean energy for industry, the potential of an Australian hydrogen industry is massive," Labor's one page outline said.

Source: Energy News Bulletin

Read more here.

ECNT Collaborate to Build Talent Pipeline

Sonia Harvey — Tue, 22 Jan 2019 04:19:16 GMT

Energy Club NT has joined the Top End Pathways in Technology (P-TECH) Partnership to help develop the NT Energy industry’s future workforce.

The P-TECH model enables industry, education and community to collaborate to provide students with industry-supported pathways to STEM related qualifications and local employment opportunities.

There are 14 partnerships involved in the Government-funded P-TECH Australia Pilot, and Top End is the only partnership in the Northern Territory.

Top End P-TECH focuses on building Casuarina Senior College students’ STEM and job-ready general skills to prepare them for the jobs of the future in the Energy, and Defence Maritime Sustainment industries.

Energy Club NT joins Norship Marine, Austal, Thales, Royal Australian Navy, Territory Generation and NT Power Water Corporation as an industry partner.

Energy Club NT CEO, Sonia Harvey, says Top End PTECH is a “fantastic opportunity” to connect with local students to promote the extensive career opportunities in the region’s Energy industry.

“It’s essential that we engage students early to ensure these career pathways can be explored,” Harvey says. “Providing Territory jobs for Territory students will help to support existing businesses and new opportunities to come as the industry continues to develop in our region. There is no longer the need to leave the Northern Territory to have access to world class, innovative careers in the Energy industry.”

Energy Club NT encourages members to get involved with Top End P-TECH Partnership. If you are interested in working with local students to provide mentoring and create engaging projects, please get in touch via email (info@energyclubnt.com.au) to discuss opportunities.

To learn more about P-TECH, visit: www.ptech.org.au/topend-p-tech-partnership/.

Falcon and Origin JV hit the gas on Beetaloo

Sonia Harvey — Tue, 22 Jan 2019 02:46:03 GMT

THE FALCON Oil & Gas (30%) and Origin Energy (70%) joint venture have accelerated plans for the second stage of its upcoming exploration and appraisal program in the Beetaloo sub-Basin, signing a rig contract with Ensign Australia and outlining activities for the next 12 months.

The Beetaloo is considered one of the most prospective parts of the Northern Territory and now the Top End has lifted its fraccing moratorium, albeit with 135 conditions, Origin and Irish partner Falcon have committed to conducting the appraisal program over the coming months and have already begun work at some well sites including water bore drilling and water monitoring.

The drilling program will include two horizontal wells and one vertical well, the first of which will spud in June.

The Stage 2 Cost Cap is approximately A$65m for the exploration and appraisal program, including the drilling and hydraulic fracture stimulation costs of the two horizontal wells.

The focus will be on the liquids-rich Kyalla Formation and Velkerri Shale. Together with the Velkerri B dry gas play discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for Stage 3 drilling next year.

Falcon CEO Phillip O'Quigley said the announcement was an exciting development for shareholders.

"We look forward to updating the market as work progresses over the coming months," he said.

Source: Energy News Bulletin

Read more here.

Mineral Lease Granted for New Lithium Mine

Sonia Harvey — Tue, 22 Jan 2019 02:36:57 GMT

Dale Wakefield, Member for Braitling

The Territory Labor Government has granted a mineral lease for a new lithium mine that has the capacity to create up to 150 jobs during construction and 90 during operation.

The project, located around 36km from Berry Springs and 90km from Darwin by road, is being developed by Lithium Developments (Grants NT) Pty Ltd, of Core Lithium Ltd.

Lithium is a vital ingredient in lithium-ion battery technology, used in electric vehicles and energy storage, and the present boom in demand for the resource is expected to continue.

No chemicals are required to turn lithium ore into concentrate, which will be processed at the site then shipped by road to Darwin Port for export.

Quotes from Acting Minister for Primary Industry and Resources, Dale Wakefield:

“Creating jobs is the number one priority of this Government and this is an important milestone for this project.

“If it successfully goes through the rest of the approvals process, this mine could not only provide direct jobs for Territorians on site, but also flow-on effects for Territory businesses through contracts and tenders.”

Quote from Core Lithium Managing Director, Stephen Biggins:

“We are grateful for the strong support of the NT Government in enabling us to be part of a bright new future in the development of the renewable energy industry chain for the Northern Territory.”

Media Contact: Leanne Hudson 0427 687 079

Timorese president OKs LNG funding

Sonia Harvey — Fri, 18 Jan 2019 05:46:44 GMT

TIMOR-Leste president Francisco Guterres has approved use of the nation’s sovereign wealth fund – earned from petroleum revenues – for a US$650 million purchase of ConocoPhillips’ and Shell’s shares of the Greater Sunrise gas project.

The president earlier vetoed the bill allowing the use of the fund, suggesting the monies could be misused, and suggested the proposal would have to first be revised, however having won the approval of parliament Guterres was forced to ratify the unaltered terms.

Reuters says the decree removes the 20% ceiling on state participation in hydrocarbon projects and will allow Greater Sunrise and other projects "to bypass approvals by parliament in future".

The tiny nation moved first on ConocoPhillips, and then Shell, last year to take their interests in the long-stalled development.

That has increased the nation's share of the project to over 56%, making it the majority stakeholder over operator Woodside Petroleum and giving it leverage to push for its preferred development concept of an LNG plant onshore Timor-Leste, rather than Woodside's plan of sending the gas to Darwin.

A permanent maritime boundary with Australia was agreed between the two nations' foreign ministers in April.

The terms of the production sharing contract would see the small nation take 70% of revenue should the gas be sent to its shores and 80% if the plant is developed in Australia.

Source: Energy News Bulletin

Read more here.

South Korea unveils hydrogen economy plans

Sonia Harvey — Thu, 17 Jan 2019 06:30:18 GMT

Ambitious plans to have 80,000 hydrogen (H2)-powered fuel cell vehicles on South Korea’s roads by 2022 were unveiled by President Moon Jae-in today as he announced his government’s determination to build a so-called H2 economy.

The South Korean Government sees H2 as a new engine for economic growth and central in the country’s shift to a low-carbon economy in the long term.

At a government-led event in the southeastern city of Ulsan today, Moon announced a road map which would see the country produce 6.2 million units of fuel cell electric vehicles and build 1,200 refuelling stations by 2040.

The government will provide subsidies for fuel-cell electric taxis and trucks while working with local governments to increase the number of fuel-cell electric buses to 2,000 by 2022. It will also replace all 820 police buses with fuel cell electric buses in 2021.

“Our government’s determination to (build) a hydrogen economy is firm,” the president said at the meeting, as reported by the Korea Times.

“Unlike carbon, which creates greenhouse gas and fine dust, H2 is a clean energy that produces only water as a by-product. Also, H2 cars have the effect of purifying fine dust when in operation.”

“H2 is an endless resource that can be found anywhere. Right now, extracting (energy) from fossil fuels is common, but generating renewable energy from solar, wind and bio energy sources will become more common in the future.”

“We are an energy-poor country that relies on imports for 95% of its energy needs. Once we are able to supply a certain portion of energy through the H2 economy, we may more steadily develop our economy and enhance our energy security.”

“The H2 economy will open doors to a new opportunity for us.”

Source: Gas World

Brighter online series The Chef's Secret: Cooking with Natural Gas

Sonia Harvey — Wed, 16 Jan 2019 06:04:12 GMT

The Brighter program is an initiative of APPEA, the voice of the oil and gas industry. Brighter is a new way of talking to Australians about the role natural gas plays in their everyday life and exists to draw out and champion the positive stories surrounding Australian natural gas.

To reach a broad cross-section of Australians, Brighter has sourced a range of stories that represent the industry, from the role it plays in STEM education to supporting small businesses and the everyday uses of gas in the home.

The Brighter team are excited to announced that their new online series, The Chef's Secret - Cooking with Gas, premiered online on Monday 14 January. They have brought on two well-known Australian chefs, Adrian Richardson and Georgia Barnes, to demonstrate how Australians can make the most of natural gas used for cooking - whether it be on a cooktop, BBQ or even camping stove.

This eight-part series is available to view on the Brighter website (www.bright-r.com.au<http://www.bright-r.com.au>) with new episodes available from 4pm on Mondays.

To spread the word or just learn more - find and follow Brighter through these channels:

Bright-r.com.au
Facebook.com/brighteraustralia
Twitter.com/brighterwithgas
Instagram.com/brighter_au

APPEA Seminar series in Darwin - Introduction to Oil and Gas Industry

Sonia Harvey — Wed, 16 Jan 2019 05:34:23 GMT

Attendees gain an appreciation of the geological, technical and economic aspects of the industry, features of the onshore and oﬀshore environments, as well as the exploration, development and production phases. The seminars oﬀer an invaluable opportunity to understand the key characteristics and global context of Australia’s oil and gas industry, and come to grips with its key concepts and terminology.

These seminars will be delivered nationally and facilitated by Curtin University’s Adjunct Professor Peter Moore and University of Adelaide’s Associate Professor Steve Mackie.

Delegates will gain an understanding in:
- Background information and the global context of Australia’s oil and gas industry
- Geological, technical and economic aspects of the industry
- Features of the onshore and offshore environments
- The exploration, development and production phases of oil and gas
- Key concepts and terminology

2019 Seminar series dates and locations

Brisbane – Tuesday 26 February
Perth – Thursday 21 March
Darwin – Tuesday 26 March
Brisbane – Monday 27 May (APPEA Conference 27-30 May)
Canberra – Tuesday 13 August
Melbourne – Tuesday 17 September
Brisbane – Tuesday 8 October
Perth – Thursday 10 October

Further details available here: https://www.appea.com.au/event/intro-to-oil-gas-industry-seminars/

APPEA Members rates available for ECNT members - contact the office.

Creating Jobs, Delivering Election Commitment: Massive Boost for NT Renewables

Sonia Harvey — Tue, 15 Jan 2019 01:09:31 GMT

Office of the Chief Mnister Media Release

The Northern Territory is set to be powered by 10 per cent renewable energy before the end of the year, thanks to a new, $43 million solar project announced by the Territory Labor Government today.

Australian renewables developer Tetris Energy will soon advance to construction on two 10MW solar farms at Batchelor and Manton Dam, which will generate enough energy to power 5000 homes when completed in the second half of 2019.

The project, in combination with the previously announced 25MW Katherine Solar Farm, will catapult the share of renewable energy use in the NT’s major centres from the current 3 per cent to 10 per cent.

The Territory Labor Government has set a target of 50 per cent renewable energy by 2030.

Up to 70 local jobs will be supported during the construction phase of the project, scheduled to last from March until September.

Jacana Energy and NT Solar Investments have entered into a Power Purchase Agreement (PPA) for the electricity and renewable energy certificates generated by the two farms.

Quotes attributable to Chief Minister, Michael Gunner.

“The Territory Labor Government’s number one priority is jobs for Territorians.

“We are delivering our election promise of 50 per cent renewables by 2030 and that will create local jobs, and cheaper, cleaner, more reliable power, which benefits all Territorians.”

“We have kept our promise to stabilise power prices after massive hikes under the CLP and by delivering cheaper and cleaner electricity, we will put downward pressure on electricity costs.”

Quotes attributable to Minister for Renewables and Essential Services, Dale Wakefield.

“This private sector investment by Tetris Energy will take us to 10 per cent renewable energy by the end of the year, which is a huge step towards our renewable energy target of 50 per cent renewables by 2030.

“The Territory Labor Government knows the NT can be the solar capital of Australia. That’s why we have invested in a $59 million joint investment with ARENA for the Solar SETuP program providing 10MW of solar across 25 remote communities, $5 million into our Rooftop Solar in Schools program, $8.3 million in the 5MW Alice Springs Battery Energy Storage System and $4.5 million in our smart energy grants scheme.

“With the Katherine Solar Farm and these projects announced today, that’s over $150M in renewables investment by the Territory Labor Government.”

Quotes from Frank Boland, Director, Tetris Energy

“Tetris Energy welcomes the opportunity to enter into the Power Purchase Agreement to sell electricity to Jacana Energy from the Manton Dam and Batchelor Solar Farms. This will be an important enabler in moving towards construction at the end of the wet season.

“Jacana Energy customers located all over the Darwin-Katherine network will receive the benefits of clean renewable electricity. By using the latest in single axis tracking Solar PV technology, it will allow the plants to generate more power in the mornings and evenings.

“The Northern Territory has enormous opportunity for renewable energy and Tetris Energy is excited to be a part of the Territory Government’s initiatives to enable this private sector investment in new renewable energy projects. We expect there to be an opportunity of around 70 local jobs during the construction of these two projects and ongoing local roles for service and maintenance.

“Tetris Energy has collaborated with Infigen Energy to advance the development of the Manton Dam and Batchelor Solar Projects.”

Media Contact: Cameron Angus 0404 021 192

Want to join a Brighter community?

Sonia Harvey — Thu, 10 Jan 2019 04:41:49 GMT

The Brighter program is a new way of talking to Australians about the role natural gas plays in their everyday life.

From gas-powered ships and the best public BBQs to the role industry plays in STEM education and supporting small businesses, the Brighter program exists to draw out and champion the positive stories surrounding Australian natural gas.

We’ll be telling these stories through stakeholders and local communities, through a vast array of digital channels, at local forums, through creative media and at live events. We’ll be reaching a broad cross-section of Australians, including those completely unfamiliar with the industry, in a way that’s meaningful to them.

We’d love you to join us to spread the word or just learn more - find and follow Brighter through these channels:

Bright-r.com.au

Facebook.com/brighteraustralia

Twitter.com/brighterwithgas

Instagram.com/brighter_au

Natural gas. Naturally part of every day.

ConocoPhillips and Charles Darwin University - Health Services Traineeship

Sonia Harvey — Thu, 10 Jan 2019 03:10:00 GMT

Health Services Traineeship

ConocoPhillips and Charles Darwin University have developed a Health Services Traineeship for an Aboriginal and Torres Strait Islander cohort. This is a comprehensive, 20 week program that involves 12 weeks of classroom time at CDU, and eight weeks of practical on-the-job training. Participants will receive a wage for the duration of the program. Once all competencies have been achieved, participants will obtain a Certificate III in Individual Support, and ideally, will secure full time employment with the host employer. A Certificate III in Individual Support enables participants to work in aged and disability care, areas that are of high need in the NT.

Entry requirements

There are no minimum admission requirements however applicants who wish to commence this course need to have the required skills and knowledge to undertake the qualification at this level e.g. completion of Year 10 or equivalent and a general command of spoken and written English to be able to meet industry standards for communication.

Selection Criteria

The selected participants will meet the following criteria:

· Willing to take on the 20 week training program and full-time work as part of the work placement component,

· Evidence of managing responsibility in the workplace, home or community,

· Can obtain Police clearance and OCHRE card

· Completion of year 10 (desirable)

· Ability and willingness to undertake shift work during work placement (if applicable)

· Access to own transport, or willingness to arrange suitable transport, to and from work placement location

There are 15 positions are available, and we strongly encourage applications from the Larrakia community. Applications are now open and will close Friday 25 January 2019. An information session will be held at CDU on Wednesday 16 January 2019. The program will commence on Monday 18 February 2019.

More Information

Please contact Amelia Seipel at CDU if you have any questions on 8980 0600, email: amelia.seipel@gtnt.com.au or Jess Ong, External Relations Advisor ConocoPhillips 8919 1808, email: Jessica.Ong@contractor.conocophillips.com

Jadestone keen to restart Montara field

Sonia Harvey — Wed, 09 Jan 2019 04:19:35 GMT

THE COMPANY acquiring the notorious Montara oil field in the Timor Sea off the coast of northern Australia from Thailand oiler PTTEP, has announced that maintenance, testing and completion works at the field have now been completed and operations are expected to resume following an enforced shutdown by Australia’s regulator in November.

Facilities are currently undergoing the final stages of pressure testing to ensure asset integrity and production safety and the company is awaiting regulatory approval to restart production from the well.

Repairs, maintenance and testing have been underway since the National Offshore Petroleum Safety and Environmental Management Authority slammed operator PTTEP with a stop order and forced the platform shut down at the Montara Venture FPSO after the regulator discovered a "number of operational issues".

The FPSO oil train has been successfully leak tested and the gas train is now being tested so that both can start together and allow for immediate gas-lift and gas-reinjection to optimise production operations as rapidly as possible.

"I'm pleased that the shutdown of Montara assets has been safely concluded, which now completes all overdue inspection and maintenance items which we identified during the initial weeks after closing the transaction with PTTEP," Jadestone CEO Paul Blakeley said.

"During the shutdown, Montara personnel logged more than 9,000 hours of work, all executed without a single safety incident."

Source: Energy News Bulletin

Read more here.

EGL buys RCR's energy division

Sonia Harvey — Mon, 07 Jan 2019 04:22:46 GMT

THE piecemeal sale of RCR Tomlinson continues with its energy business being sold to The Environmental Group Limited via administrators McGrath Nicol, announced today.

It will be funded from EGL's existing debt facilities and will complete within the first half of the month, with no purchase price given at the request of McGrath Nicol until the end of this month.

EGL says the business has "a strong track record of profitability" and the buy is earnings per share accretive "on a full year basis" excluding one off costs such as integration.

It "will provide EGL with a recurring revenue stream to balance the project based on revenue of EGL's Baltec and TAPC division," the company said this morning.

EGL purchased Baltec IES last year, announcing a memorandum of understanding in August and acquisition completion in December.

The main point of this new buy is to progress the company's plans for what it calls a "bio / waste to energy platform" given it will be acquiring tech that allows a combination of gasses and waste energy sources to be used to produce electrical power or steam.

It will also help EGL establish a footprint in all states "and build an environmental business to improve air quality, reduce carbon emissions, enhance waste-to-energy and lift water quality".

EGL has said it will absorb the current staff.

Source: Energy News Bulletin

Read more here.

Prelude Starts Production

Sonia Harvey — Wed, 26 Dec 2018 03:13:07 GMT

Shell today announced that the wells have been opened at its Prelude Floating Liquefied Natural Gas (FLNG) facility located 475km north-north east of Broome in Western Australia.

Prelude now enters start-up, ramp-up, which is the initial phase of production where gas and condensate is produced and is moved through the facility. Once this has concluded the facility will be stabilised for reliable production of LPG and LNG.

The focus continues to be on providing a controlled environment to ensure Prelude will operate reliably and safely now, and in the future.

Read more here.

Statement from Chief Minister

Sonia Harvey — Fri, 21 Dec 2018 04:30:14 GMT

Today I have advised Ken Vowles that he has been dismissed from the Cabinet for breaking Cabinet confidentiality.

The Caucus has also dismissed Ken Vowles, Jeff Collins and Scott McConnell from the Caucus.

Ken Vowles, Jeff Collins and Scott McConnell were dismissed for breaking the Caucus values and standards signed up to at the beginning of our term.

When the Territory Labor Government was elected in 2016 we promised to put Territorians first by delivering jobs, putting kids at the centre of government and restoring trust.

Unity of purpose is vital to Government achieving these aims.

Territorians expect and deserve Government to be solely focussed on their concerns and making their lives better.

The Government has made these decisions because now more than ever the Territory cannot afford distractions from the challenging tasks at hand – to deliver jobs, to repair the budget, to deliver for Territorians in the bush and to create a brighter future for all Territorians.

Media Contact:

Maria Billias 0401 119 746

Changes to NT petroleum regulations hit today

Sonia Harvey — Fri, 21 Dec 2018 04:27:53 GMT

CHANGES to the Northern Territory’s petroleum regulatory regime, based on recommendations from the latest, wide-ranging scientific inquiry into fraccing come into effect today.

The regulations come into force as resources minister Ken Vowles makes his way to Adelaide in South Australia for the latest Council of Australian Government energy council meeting.

The NT government claims the recommendations will ensure the consideration of cumulative impacts of fraccing; will require the publication of all notices and reports of environmental incidents, including reports about reportable incidents; provide transparency around proposed environmental management plans prior to ministerial consideration and adopt Western Australian-style disclosure of all fraccing chemical use, plus flowback and produced water composition.

"Among other things, the changes to regulations mean that, for the first time, Territorians have the opportunity to comment on environment management plans for the drilling of petroleum wells and hydraulic fracturing before they are considered by government," Vowles said today.

The inquiry, led by Justice Rachael Pepper, was finalised in July and contained 135 recommendations, suggesting the direct environmental impacts of fraccing could be managed.

Source: Energy News Bulletin

Read more here.

Santos switches to solar

Sonia Harvey — Fri, 21 Dec 2018 04:25:51 GMT

ADELAIDE oiler Santos has received a grant from the Federal government-backed Australian Renewable Energy Agency to transition to 100% renewable energy for its oil well operations in the Cooper Basin as part of the Advancing Renewables Program.

he project will convert all beam pumps at 56 sites to solar and batteries at a cost of A$16 million, with ARENA stumping up 25% of that.

A single, pilot solar beam pump has been in operation since August and Santos says this expansion will provide "adequate scale to achieve supply chain and execution synergies and trial multiple vendors to reduce unit costs".

Santos managing director Kevin Gallagher said the "Australian first" arose from an idea from the company's energy solutions team, which is "dedicated to finding innovative ways to prepare the business for a lower-carbon future".

"The solar beam pump will reduce emissions and waste from oil production, saving 140 barrels of oil per day which is required to fuel the pumps, and instead will be sold for beneficial use," Gallagher said.

"Our own consumption of fuel in the Cooper Basin is equivalent to about 5% of east coast domestic gas demand, so if we can extend our use of renewables to our gas operations, we can also free up more natural gas for sale, which is a good way to put downward pressure on gas prices.

"The solar beam pump is also a perfect demonstration of Santos' strategy to become Australia's safest, lowest cost onshore operator in action."

He said renewables' use would also cut the costs of transporting fuel long distances by road to its remote well locations.

Source: Energy News Bulletin

Read more here.

Community Bulletin # 9 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Fri, 21 Dec 2018 03:28:22 GMT

Progressing the implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the NT

The past two months has seen extensive legislative changes made to strengthen onshore gas regulation, with further recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory coming into effect.

A strengthened regulatory regime will ensure robust decision making by the government and provide Industry with certainty to inform their future work plans. Further regulatory changes are progressing and will be introduced to the house in the coming months.

Read full bulletin here.

Putting Territory Resources on the Map at COAG

Sonia Harvey — Wed, 19 Dec 2018 04:36:31 GMT

Minister for Primary Industry and Resources, Ken Vowles, is in Adelaide to attend the inaugural dedicated COAG Resources meeting and the COAG Energy Council.

Yesterday’s Resources Ministers meeting progressed the coordinated growth and development of Australia’s resources sector. Competitiveness, exploration, innovation, communities and workforce were all on the agenda, along with a minerals strategy.

This strategy is in line with the Territory Labor Government’s approach to developing our resources sector through the Resourcing the Territory initiative.

Among other subjects, today’s COAG Energy Council will discuss a national plan for hydrogen, an industry the Territory is well-placed to be part of.

The Territory is playing a growing role in the nation’s energy security - with the Northern Gas Pipeline completed last week - and the potential of the Beetaloo Basin means the NT is well-positioned to produce gas not only for national energy security and export, but also for more jobs and manufacturing in the Territory.

Quotes from Minister for Primary Industry and Resources, Ken Vowles:

“The Territory Labor Government is focused on creating local jobs, and at COAG I am delivering the message loud and clear – we have the resources that are in worldwide demand and we have the capacity to deliver on major projects.

“The $800 million Northern Gas Pipeline injected millions of dollars into the Tennant Creek region, creating opportunities for local contractors and hundreds of jobs.

“Along with the recent completion of Inpex, this project proved the Territory can deliver when it comes to projects of national and international importance.

“We have invested $26 million over four years in our Resourcing the Territory initiative to develop our minerals sector, and we have the raw materials to take part in a hydrogen industry. The future of the Territory’s resources industry is bright.”

Media Contact: Leanne Hudson 0427 687 079

Strengthening Regulation: Ensuring Accountability for the Onshore Gas Industry

Sonia Harvey — Wed, 19 Dec 2018 04:35:39 GMT

The Territory Labor Government is increasing the level of transparency around onshore petroleum activity, with changes to the Petroleum (Environment) Regulations coming into effect today.

The changes implement recommendations made in the Final Report of the independent Scientific Inquiry into Hydraulic Fracturing.

The changes:

Ensure the consideration of cumulative impacts (recommendation 14.19)
Require the publication of all notices and reports of environmental incidents, including reports about reportable incidents (recommendation 14.16)
Require that Environment Management Plans (EMPs) for the drilling of petroleum wells and hydraulic fracturing must be published and available for public comment prior to Ministerial consideration of the activity (recommendation 14.15)
Require disclosure and publication of chemical use, and that flowback and produced water composition be reported and published (recommendation 7.10)

Quotes from Minister for Primary Industry and Resources, Ken Vowles:

“The Territory Labor Government accepted all 135 recommendations from the independent Scientific Inquiry into Hydraulic Fracturing to develop a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting our environment.

“Among other things, the changes to regulations mean that, for the first time, Territorians have the opportunity to comment on Environment Management Plans for the drilling of petroleum wells and hydraulic fracturing before they are considered by Government.

“The changes also mean operators must now provide more detailed information about their activities, and that information will be made available to the public.

“We are developing the onshore gas industry based on science and in a way that will maximise the benefits and opportunities available to local businesses and communities.”

Media Contact: Leanne Hudson 0427 687 079

Northern Gas Pipeline Construction Complete

Sonia Harvey — Fri, 14 Dec 2018 04:38:35 GMT

Minister for Primary Industry and Resources, Ken Vowles, and Assistant Minister for Primary Industry and Resources, Jeff Collins, are in Tennant Creek today to attend a ceremony at Jemena’s Phillip Creek Compressor Station to mark the completion of construction of the Northern Gas Pipeline (NGP).

The NT Government awarded Jemena the tender to build, own and operate the NGP, and the $800m, 622km pipeline runs from Tennant Creek to Mount Isa, linking to the Amadeus Gas Pipeline and Carpentaria Pipeline.

The NGP has created more than 1,100 hundred jobs in total, and seen Territory contractors share in $52 million of investment, including 11 contracts awarded to Territory Aboriginal businesses.

Quotes from Minister for Primary Industry and Resources, Ken Vowles:

“The Territory Labor Government is developing our resources sector in a safe and sustainable manner, and focused on Tennant Creek as a mining services hub.

“We are creating jobs – which is our number one priority - and supporting local business by becoming a hub for gas production, export, innovation, manufacturing and services.

“The completion of the construction of the NGP shows Territory workers and businesses can deliver on major gas projects, and the NT Government can work through the necessary permit processes complex projects such as this require.

“It also means the Territory is contributing to national energy security, which is in the NT Government’s Five Point NT Gas Strategy.

“Importantly, the construction of the NGP has boosted investment and development in the Tennant Creek region, with many local contractors and workers benefiting.”

Quotes from Jemena Managing Director, Frank Tudor:

“Today we have taken a significant step towards ensuring Australian homes and businesses have the gas they need, when they need it.

“We know that the Northern Territory has enough gas to meet Australia’s future supply needs for the next 200 years or more.”

Media Contact: Leanne Hudson 0427 687 079

2019 APPEA Conference Program is NOW AVAILABLE!

Sonia Harvey — Wed, 12 Dec 2018 04:40:37 GMT

APPEA 2019 is bigger and better than ever before and covers the hottest topics facing the energy industry today.

Download your conference program and register now for APPEA 2019

Central about to sell first east coast gas

Sonia Harvey — Thu, 06 Dec 2018 04:43:59 GMT

THE Gas Sale Agreement between Central Petroleum and its partner fertiliser maker Incitec Pivot will begin between December 29 and January 10 reflecting when Jemena’s Northern Gas Pipeline is expected to be up and running.

Central says it is already selling commissioning gas to Jemena and it expects sales to rise as the date for NGP start up comes closer.

The Mereenie facility upgrade and Palm Valley restart projects have been brought online.

All key processing and production equipment is installed and running except for the new field boost compressor at Mereenie that has been installed and is being tested.

"This is an outstanding result given these projects were fast-tracked to maximise gas sales through the NGP," Central said.

The Mereenie upgrade was delivered just eight months after ordering long lead items, and was commissioned three months earlier than the draft initial schedule, meaning more gas will be sold in the financial year.

When complete Mereenie will be able to deliver 44 terajoules a day of sales gas on a firm basis. The Palm Valley facility currently has 15TJpd of sales gas capacity via three wells already online and one more to be on production soon.

Source: Energy News Bulletin

Read more here.

SANTOS: Bayu Undan infill program completed under budget and ahead of schedule

Sonia Harvey — Mon, 03 Dec 2018 04:47:26 GMT

Santos today announced first gas from the third and final well of the Bayu Undan infill well program, and delivery of the whole project under budget and ahead of schedule.

A final investment decision was made in January last year as part of the long-term development plan for the Bayu Undan gas/condensate project, located in the Timor Sea. The drilling program consisted of two platform wells and one subsea well connecting into existing offshore infrastructure.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “This drilling campaign has been very successful, providing strong subsurface results, with the whole project having been executed approximately 40% below budget and the final well brought on-line over three months ahead of schedule.”

“The program’s success means that we have delivered higher liquids production and increased offshore well capacity. Operator ConocoPhillips has done an excellent job in executing such an efficient drilling program,” Mr Gallagher said.

The wells were drilled with the Noble Tom Prosser rig, which has now been contracted by Santos to undertake a 2019 drilling program, including appraisal of the recent Dorado oil discovery offshore Western Australia.

Santos holds an 11.5% interest in the Bayu Undan joint venture and the Darwin LNG plant, both operated by ConocoPhillips.

Santos also has a 25% interest in the Barossa joint venture. The Barossa gas field is currently in front end engineering and design and is the leading candidate to backfill Darwin LNG when Bayu Undan production ceases. Barossa would more than double Santos’ production in Northern Australia with a final investment decision targeted for late 2019.

Read more here.

Community Bulletin # 8 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Mon, 03 Dec 2018 03:32:39 GMT

A strengthened regulatory regime for the onshore gas industry

The Northern Territory Government is committed to developing a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting our environment.

With indications that the shale gas reservoirs in the Beetaloo Sub-basin are of global significance, it is important that we enable this substantial industry to expand in a well-regulated and planned manner from the outset. Two legislative amendment bills were passed in Parliament last week. This is in response to government’s commitment to implement all of the recommendations outlined in the Final Report from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Read full bulletin here

Restoring Trust: Water Monitoring Begins at Sites in the Beetaloo Sub-Basin

Sonia Harvey — Wed, 28 Nov 2018 03:15:00 GMT

Two companies, Origin and Santos, have received approval to install up to two groundwater monitoring bores near potential exploration sites in the Beetaloo Sub-Basin.

The approval is in line with recommendation 7.11 of the Independent Scientific Inquiry into Hydraulic Fracturing, which requires the collection of six months of baseline groundwater data in preparation for future activities at these sites.

The companies will be required to provide laboratory reports to the NT Government and the data will be published online.

The Environment Management Plans for the groundwater monitoring bores are available on the Department of Primary Industry and Resources website at www.dpir.nt.gov.au/mining-and-energy/public-environmental-reports/reports-for-petroleum-operational-activities

Approval has not been sought or given for any petroleum well drilling or hydraulic fracturing activity.

In line with another recommendation from the Inquiry (14.27), an Onshore Gas Non-Compliance Hotline has also been established as a way for people to report potential non-compliance of the onshore gas industry in the Territory.

The 24-hour toll-free hotline number is 1800 413 889. Calls can be made anonymously.

Quotes from the Minister for Primary Industry and Resources, Ken Vowles:

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

“Territorians can be assured our Government is faithfully implementing all of the 135 recommendations of the Independent Scientific Inquiry into Hydraulic Fracturing.

“This water monitoring forms part of just one of those recommendations and will allow the water to be tested for key water quality indicators prior to any exploration approvals for hydraulic fracturing being given.

“The results from this monitoring will build on a range of environmental baseline data being collected as part of implementing the 135 recommendations, including methane monitoring and regional groundwater monitoring being undertaken by CSIRO/GISERA.”

Media Contact: Leanne Hudson 0427 687 079

SHELL AUSTRALIA WELCOMES NEW VP PRELUDE

Sonia Harvey — Tue, 27 Nov 2018 04:49:31 GMT

Shell Australia welcomes Rob Jager to Perth as the new VP Prelude, taking the reins from David Bird who will be finishing his assignment on 30 November 2018. Rob moves to Perth from New Zealand, where he was the Country Chair & VP for Shell New Zealand / Shell Taranaki for more than 13 years. Shell announced the sale of its New Zealand interests in March 2018.

"It is a privilege to join Shell Australia and lead Prelude to successfully deliver gas to our customers across the globe. My focus will be the safe start-up and reliable operations of Prelude in the years to come” he said.

David Bird has been leading Prelude since 2015. He said that he has seen Prelude shift from a project under construction in Geoje, South Korea, to a facility safely moored offshore and being commissioned.

“To see Prelude now moored off the coast and being commissioned gives me a great buzz” he said.

“Thank you to the extremely motivated team both within Shell and across our partnerships, contractors and community. It has been a pleasure working with you all. I leave Prelude in Rob’s very safe and experienced hands and will continue to watch with interest as Prelude moves into its next phase of steady operations”.

Read more here.

Prime Ministers celebrate official opening of Ichthys LNG onshore facilities and first LPG shipment

Sonia Harvey — Sat, 17 Nov 2018 03:22:11 GMT

Darwin, Australia – The Prime Ministers of Japan and Australia last night joined celebrations in Darwin marking the official opening of the INPEX-operated Ichthys LNG facilities.

The two national leaders, His Excellency Mr Shinzo Abe and the Hon. Scott Morrison MP, congratulated INPEX on its historic milestone at a gala dinner at the Darwin Convention Centre.

INPEX President and CEO Takayuki Ueda said it was a tremendous honour to have two Prime Ministers speak at the INPEX celebration event.

“This is a remarkable global project that will provide lasting benefits to Australia and energy security to Japan for generations to come. It also signifies a new chapter in strengthened trading ties and relationships between Australia and Japan through Darwin, Australia’s gateway to Asia.”

The Ichthys LNG Project is the first large-scale LNG project to be operated by a Japanese company, and is the product of the largest foreign investment ever made by a Japanese company. At peak production, Ichthys will produce 8.9 million tons of LNG per year, of which approximately 70 percent will be supplied to Japanese customers.

Ichthys LNG Project commences LPG shipment

INPEX CORPORATION also announced yesterday that the Ichthys LNG Project commenced shipment of liquefied petroleum gas (LPG) from the onshore LNG processing facilities in Darwin. The first shipment of LPG is destined for Asia.

Ichthys LNG has already commenced shipment of condensate (ultra-light crude oil), that was announced on October 1, 2018, and of liquefied natural gas (LNG), announced on October 23, 2018.

Read more here

INPEX officially opens Ichthys LNG onshore facilities

Sonia Harvey — Fri, 16 Nov 2018 03:20:28 GMT

Darwin, Australia – A landmark celebration has officially opened the onshore LNG processing facilities of INPEX-operated Ichthys LNG – one of the largest and most complex resource developments in the world.

Japanese, Australian and Northern Territory government representatives unveiled a plaque to commemorate four decades of future benefits Ichthys LNG will bring to the Northern Territory, Australia, Japan and the region.

Symbolising the collaboration inherent in global enterprises on the scale of Ichthys LNG, Mr Hiroshige Sekō, Japanese Minister of Economy, Trade and Industry, Senator the Hon. Simon Birmingham, Australian Minister for Trade, Tourism and Investment, Senator the Hon. Matthew Canavan, Australian Minister for Resources and Northern Australia and The Hon. Ken Vowles MLA, Northern Territory Minister of Primary Industry and Resources united to declare the site officially opened.

INPEX CEO, President and Representative Director, Mr Takayuki Ueda said today’s official opening was the culmination of a truly remarkable global enterprise over the last 20 years, and paid tribute to all involved.

“We are standing here today thanks to the contributions of tens of thousands of people drawn from many nations across the world.” Mr Ueda said.

“Ichthys LNG is an iconic project. We are very proud of the economic and social contributions INPEX and Ichthys LNG have made to date – along with 40 years of future operations that will provide lasting economic and social benefits for Australia and energy security for Japan.”

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers. Ichthys LNG will help to meet growing energy demand in the region, while contributing to the Australian way of life.

Read more here

Harnessing the potential of Northern Territory’s gas industry

Sonia Harvey — Thu, 15 Nov 2018 03:24:35 GMT

Media release from the Chief Minister office: Follow this link for a press release regarding an MOU signed between the Northern Territory and Australian Governments that will help realise existing offshore gas reserves and the potential of the Beetaloo Sub-Basin as a new world-class gas province.

MOU NT Gas Industry (pdf 237 kb)

INPEX and Larrakia people sign historic agreement

Sonia Harvey — Thu, 15 Nov 2018 03:17:16 GMT

Darwin, Australia: INPEX, on behalf of Ichthys Joint Venture participants, is proud to announce the signing of a landmark $24 million benefits agreement with the Larrakia people in Darwin.

The 40-year agreement is considered the most significant long term package of benefits and opportunities provided outside of Native Title obligations.

The signing of the agreement marks the culmination of more than a decade of relationship building and collaboration between INPEX and the Larrakia people.

The INPEX Larrakia Advisory Committee, which includes representation from the Larrakia Development Corporation and Larrakia Nation Aboriginal Corporation, will oversee the distribution of benefits to Larrakia people. Initially, the focus is expected to be on education initiatives and on the support of the elderly members of the community.

INPEX Larrakia Advisory Committee Chairman Bill Risk said INPEX was the first company in the Northern Territory to engage Larrakia to undertake heritage surveys to ensure the protection of their cultural heritage for future generations.

“This is an agreement built on a foundation of trust and respect between INPEX and Larrakia,” Mr Risk said.

INPEX President Director Australia, Mr Seiya Ito, noted that the Japanese and Larrakia peoples share deep connections.

“We are both salt water people, we respect our Elders and we celebrate rich cultures in our daily lives,” Mr Ito said.

“Ichthys LNG has benefitted enormously from the support of the Larrakia people over many years. INPEX looks forward to building on our strong relationship with the Larrakia people for decades to come.”

INPEX, on behalf of the Ichthys Joint Venture already provides:  a scholarship program for Larrakia tertiary students to undertake studies at any university in Australia;  a funding program for primary and secondary Larrakia school students; and  an air conditioning program for Elders and people with disabilities.

Read media release here

Renewables to overtake fossil fuels: IEA

Sonia Harvey — Wed, 14 Nov 2018 03:56:08 GMT

RENEWABLES will account for 40% of global energy mix, more than individual fossil fuel energy sources, and Australia is in a prime position to leap ahead of the rest of the world and claim the crown of world’s largest hydrogen producer exporter according to the latest World Energy Outlook released from by the International Energy Agency.

The 2018 annual forecast revealed that renewables, including hydrogen produced from solar, will overtake coal and other fossil fuels by 2040 to account for more than 40% of the global energy mix under the IEA Sustainable Development Scenario.

In power markets, renewables have become the technology of choice, making up almost two-thirds of global capacity additions to 2040, thanks to falling costs and supportive government policies.

This is transforming the global power mix, with the share of renewables in generation rising to over 40% by 2040, from 25% today, even though coal remains the largest source and gas remains the second-largest.

Over the last 12 months wind and solar alone accounted for nearly half of all new capacity.

However it is hydrogen that the authority identified could potentially be one of Australia's biggest opportunities for expansion, if hydrogen infrastructure was developed in conjunction with solar and wind plants.

According to the report, developed counties with a high level of resources could provide nearly 100 million tonnes of oil equivalent of hydrogen - which would be the same output as 3% of global gas consumption today.

The authority's attention to hydrogen mirrors sentiments from Australia's chief scientist, Dr Alan Finkel, who says hydrogen exports could be a multi-billion dollar opportunity for Australia.

The IEA used a Sustainable Development Scenario, which took into consideration changing government policies in response to the Paris Agreement and climate change reduction measures undertaken by world leaders in the development of the outlook.

"Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear; the world's energy destiny lies with government decisions," IEA executive director Dr Fatih Birol said.

"Stable support policy frameworks help drive down costs, in turn providing for increasing policy support while maintaining energy affordability."

Read more here.

Source: Energy News Bulletin

New Battery Energy Storage System Will Reinforce Alice Springs as the Solar Capital of Australia

Sonia Harvey — Fri, 09 Nov 2018 04:00:07 GMT

Minister for Renewables and Essential Services Dale Wakefield today launched the new $8.3 million 5MW Alice Springs Battery Energy Storage System (BESS).

The BESS will help to support cheaper and cleaner power for Territorians and is an important step forward in achieving the Territory Labor Government’s target of 50% renewable energy by 2030.

The Government-owned Territory Generation’s new battery will provide reliable, secure, and cost-effective electricity supply for Territorians and for business. It is also one of the largest grid-connected storage solutions in Australia.

During high solar penetration periods such as in the middle of the day, solar can currently supply up to 40% of the Alice Springs power needs. It is projected that BESS will support an increase of this supply up to 50%.

Other features of the new 5MW battery include:

• Provide a near-instant response to variations in solar load, particularly during cloud cover, and it will improve power generation reliability for the region

• The system has a 5MW capacity, combined with 40 minutes of storage capability, and it is capable of flexing to 8MW for six seconds and 7.5MW for 60 seconds

It is projected that the $8.3 million investment for the battery system will be recouped in four to five years due to efficiency improvements.

The battery system has already provided power into the grid through its rigorous testing and by the end of November it will be fully integrated into the Alice Springs power system.

Since the release of the Roadmap to Renewables Report some of the Territory Labor Government’s other key investments include:

• $40 million private sector investment in the Katherine Solar Farm project that will be the largest renewable energy generator in the Northern Territory. This solar project will increase renewable energy use in the Territory and provide enough power for 8,000 homes

• $59 million joint investment with ARENA for the Solar SETuP program providing 10MW of solar across 25 remote communities. This program is nearing completion. It will also reduce diesel use and take trucks off the roads

• $4.5 million for co-contribution grants of up to $1000 for households to undertake energy efficiency measures such as installation of solar-photovoltaic (PV) systems, batteries, solar pool pumps, smart meters, efficient lighting, solar hot water, energy efficient appliances, and efficiency audits

• $750,000 to Power and Water to develop and validate a dynamic system model which will ensure that increasing levels of renewable energy can be integrated into the grid in a stable and predictable way

Quotes from Minister for Renewables & Essential Services, Dale Wakefield

“The Territory Labor Government’s number one priority is creating local jobs. Delivering 50% renewables by 2030 will deliver local jobs, and cheaper, cleaner power.

“We are investing in Alice Springs to achieve our renewable energy target and become the Solar Capital of Australia. The new Alice Springs Battery Energy Storage System is an important piece of infrastructure that will enable us to integrate more renewables, and provide increased reliability of supply to homes and businesses in Alice Springs.”

Quotes from Territory Generation CEO, Tim Duignan

“Territory Generation’s Battery Energy Storage System will provide near-instantaneous response to changes in solar load, such as cloud cover.

“Reliability and stability of base load power is a critical barrier in the uptake of renewable energy across Australia, and I am pleased that we are at the forefront of tackling this issue right here in Alice Springs.

“The cutting-edge technology in our Battery Energy Storage System will reinforce Alice Springs as the solar capital of Australia by enabling greater solar penetration and grid stability.”

Media Contact: Paige Nguyen 0428 727 244

Community Bulletin # 6 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Fri, 09 Nov 2018 03:35:57 GMT

Release of the first Hydraulic Fracturing Implementation Progress Report and Onshore Shale Gas Community and Business Reference Group update

The Community and Business Reference Group (Reference Group) held its second meeting in Darwin on 23 October 2018 to discuss the progress of implementing the recommendations from the the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, and to provide input into the approach for delivering the framework for the Strategic Regional Environmental Baseline Assessments (SREBAs).

Representatives from CSIRO and the Northern Territory Government gave a presentation relating to the approach to define framework for the SREBAs and the Reference Group participated in these discussions and provided feedback, noting that Reference Group member Tom Stockwell is the Reference Group representative on the SREBA Project Advisory Committee.

The Reference Group also considered the quarterly progress report outlining the status of implementing the recommendations as set out in the Implementation Plan. In developing the Implementation Plan each recommendation was grouped into one of six reform areas and grouped into three delivery timeframes:

 Stage One – Planning, completed at the end of July 2018;

 Stage Two – Preparing for exploration, with a target completion date of December 2018; and

 Stage Three – Exploration and Preparing for Production, with a target completion of December 2021

Read full bulletin here

Hydrogen has billion-dollar potential for Australia: Finkel

Sonia Harvey — Wed, 24 Oct 2018 04:56:10 GMT

THERE is a multibillion dollar potential in hydrogen exports to North Asia and Australia is well placed to take advantage of the demand, according to Australia’s chief scientist, Dr Alan Finkel, who spoke to Energy News on the sidelines of the Gas Technology Conference-14.

Gas know how will come in especially handy for future hydrogen exports, though LNG trains cannot be reconfigured to process the far colder hydrogen and shouldn't need to be given rising global LNG demand, he said.

"The Japanese as part of their national strategy are looking at 10MMtpa per year 2020-2040 (at) US$2/kg," he said.

"That's $20 billion per annum.

"There is potential for South Korea to be an importer, we're talking a substantial industry here. We could be the major supplier to Japan. It's a non-trivial market."

There is also domestic potential via pipe gas, and industrial uses, though hydrogen as an energy source in and of itself is unlikely.

Australia isn't the only nation Japan is looking to; it is trialling varied technologies in Qatar, Norway, Saudi Arabia, Brunei and Chile but Australia's proximity and export history help.

The LNG boom that began in 1979 with the first contract signed and in 1989 with the first shipment from the North West Shelf consortium could be replicated for hydrogen with more haste, he said.

Eventually there will be the same sorts of contracts, company to company, supported by bilateral agreements, spot markets and a trading hub, Finkel said all similar to the rapidly evolving LNG market.

There are multiple technical challenges with hydrogen compared with gas, and though the decades of Australian know how helps there are large differences in that the liquefaction temperature is far lower, over -250C compared with -160C, it cannot be compressed in the same way as gas at scale, and it is not a recoverable resource, but must be created, however "the logic is the same", Finkel said.

Source: Energy News Bulletin

Read more here.

INPEX confirms first LNG cargo from Ichthys LNG Project

Sonia Harvey — Tue, 23 Oct 2018 04:01:19 GMT

Perth, Australia – INPEX CORPORATION (INPEX) today confirmed the first shipment of liquefied natural gas (LNG) has departed from the INPEX-operated Ichthys LNG Project at its onshore gas liquefaction plant in Darwin, Northern Territory.

The first LNG shipment is destined for the INPEX-operated Naoetsu LNG terminal in Niigata Prefecture in Japan.

“First cargo from Ichthys LNG is a historic moment for INPEX, Japan and Australia. It demonstrates our commitment to being a safe, reliable long-term energy supplier,” said INPEX President Director Australia, Seiya Ito.

“Ichthys is an iconic project for Australia. With an operating life of around 40 years, Ichthys LNG will be delivering benefits to the Australian economy and community for decades to come.”

Ichthys is scheduled to gradually increase its production volume of LNG to approximately 8.9 million tonnes of LNG per year when it reaches its production plateau – this is equivalent to more than 10 per cent of Japan’s annual LNG import volume.

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers, further contributing to the stable supply of energy to Japan and helping to meet energy demand in Asia and the rest of the world.

The departure of the LNG cargo follows the Project’s shipment of field condensate (ultra-light crude oil), which commenced on 1 October 2018, as announced on the same day.

The Project is also scheduled to commence the shipment of liquefied petroleum gas (LPG) later this year.

INPEX will continue to work toward achieving stable production and an early ramp-up at the Ichthys LNG Project with the understanding and cooperation of all its stakeholders, including Ichthys Joint Venture participants, the local communities, the Australian federal government and the governments of Western Australia and the Northern Territory.

Read more here

Community Bulletin # 5 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Fri, 19 Oct 2018 03:39:20 GMT

Onshore Shale Gas Community and Business Reference Group update

The Onshore Shale Gas Community and Business Reference Group provides direct feedback and advice to the Hydraulic Fracturing Inquiry Implementation Taskforce in the Department of The Chief Minister. The Reference Group is essential to ensure stakeholders have oversight and input into the development of the implementation framework and its subsequent execution.

The Community and Business Reference Group will meet on Tuesday 23 October. The Agenda can be viewed here

The second meeting of the Reference Group will focus on the design of the Strategic Regional and Environmental Baseline Assessments and the planned changes to the Regulatory Model to make the Minster for the Environment and Natural Resources the responsible Minister for decisions relating to the Petroleum (Environment) Regulations under the Petroleum Act.

Community and Business Reference Group members bring a diversity of skills from the community, environmental groups, local business, the gas industry and local Government. The Members are:

• Mr Denys Stedman (Chair) – Buy Local Advocate

• Mr Tom Stockwell – former President, Northern Territory Cattlemen's Association

• Mr Bobby Nunggumajbarr – Chairman, Yugul Mangi Development Aboriginal Corporation

• Mrs Katherine Warby – Barkly Pastoralist and Business Owner

• Mr Jimmy Cocking – Director, Arid Lands Environment Centre

• Mr Matt Doman – Director, SA and NT, Australian Petroleum Production and Exploration Association

• Ms Julie-Ann Stoll – Manager, Mining Central Land Council

• Mr Greg Bicknell – Chief Executive Officer, Chamber of Commerce

• Ms Gillian Duggin – Principal Lawyer and Executive Officer, Environmental Defenders Office

• Mr Geoff Crowhurst – Chair, Katherine Mining Services Association

• Mayor Fay Miller – Mayor, Katherine Town Council

• Prof Alan Cass – Director, Menzies School of Health Research

• Mr Michael Bridge – Chairman, Tourism NT

• Mr Joe Morrison – Chief Executive Officer, Northern Land Council

• Mr Greg Owens – Chief Executive Officer, NT Farmers

• Mr David Ciaravolo – Executive Officer, Amateur Fisherman’s Association of the NT

• Mr Damian Hale – Organiser, Australian Workers Union

Read full bulletin here

Creating local jobs of the future through cheaper, cleaner and more reliable power

Sonia Harvey — Mon, 08 Oct 2018 04:59:09 GMT

The government has announced electricity market reforms to deliver lower cost and reliable power, and meet the government’s target of its 50 percent renewables by 2030.

These reforms include a competitive wholesale electricity market consistent with recommendations made by the independent panel in the Roadmap to Renewables report.

Over the next 12 months, a Northern Territory Electricity Market (NTEM), tailored to the Territory’s circumstances, will be developed.

This will ensure the growing interest in renewable energy can be facilitated in the Darwin-Katherine power network in a way which will deliver lower cost generation and reliable power to Territorians.

The NTEM is expected to be up and running within 12 months, and government will work closely with stakeholders on design and implementation.

Government will also begin consultation shortly on a review of supply and feed-in tariffs to encourage behind the meter energy storage for those with rooftop solar photovoltaics (PV) and stimulate greater take-up of energy efficient technologies.

This was also one of the recommendations made by the renewables panel to increase system reliability and enable Territorians to reduce their electricity costs during the most expensive times of the day.

The reforms aim to encourage cheaper renewables into the system, putting downward pressure on power prices.

In a major step towards reaching the 50 percent renewables target, the government has approved a 25 megawatt (MW) solar photovoltaic electricity plant to be developed near Katherine.

The power purchase agreement (PPA) between Jacana Energy and Katherine Solar Pty Ltd will enable the construction of the $40 million project, create over 100 jobs during construction and be the largest renewable energy generator in the Northern Territory.

This is the first of a number of large-scale solar projects proposed by investors.

More information can be found at: https://roadmaptorenewables.nt.gov.au/

Quotes from the Chief Minister:

“Creating local jobs is my number one priority.”

“Our election commitment of 50% renewables by 2030 is already paying dividends by creating local jobs in the growing renewable energy sector.

“We have kept our promise to stabilise power prices after massive hikes under the CLP.

“The fact we have also kept public assets in public ownership means we are perfectly place to transition to more renewable energy while maintaining system reliability.

Quotes from the Minister for Renewables and Essential Services:

“This agreement between Katherine Solar and Jacana will increase renewable energy use in the Territory by between 3 and 4%.

“It’s a huge step towards our renewable energy target and will put downward pressure on electricity prices.

“There are lessons learned from the National Energy Market which we have incorporated into the design of this policy.

“This is a common-sense and best practice approach tailored for the Territory’s unique circumstances.”

Quotes from Martin Poole, Epuron Executive Director:

“Epuron is pleased to be entering into an agreement to sell solar electricity to Jacana. We look forward to the Katherine solar project moving into construction in the coming months."

“The NT has great potential for solar energy, and it is exciting to see the Territory Government’s initiatives to enable investors to compete to generate the lowest cost solar power for the grid."

“Epuron owns and operates solar power stations in the NT at Alice Springs, Yulara, Kalkarindji, Ti Tree and Lake Nash / Alpurrurulam and we are pleased to be here at the announcement of our first project in the Darwin - Katherine electricity system.”

Media Contact: Cameron Angus – 0404 021 192

Implementation Plan (pdf 4 mb)

Japanese PM to make historic visit to Darwin

Sonia Harvey — Sat, 22 Sep 2018 05:01:24 GMT

Japanese Prime Minister Shinzo Abe will make an historic visit to Darwin in November this year.

The visit, to be hosted by Australian Prime Minister Scott Morrison and Northern Territory Chief Minister Michael Gunner, is ahead of an APEC meeting of regional leaders in Port Moresby.

Mr Abe is expected to visit the Darwin cenotaph to pay official respects to Australian and Japanese soldiers and civilians killed during the bombing, and to inspect the $34 billion INPEX gas pipeline project, ahead of the first shipment of gas.

This is the first visit to Darwin by a Japanese leader since World War Two, when Japanese forces killed more than 250 people.

Quotes from Chief Minister Michael Gunner

"The NT - Japan relationship is based on more than business, it is based on friendship, respect and a profound shared history.

"We are great business partners, but first and foremost we are great friends - and I want to Japan to know it has no better friends in Australia than the people of the Northern Territory.

“This is an incredibly important visit from one of our most significant regional neighbours. It highlights the importance of Australia’s relationship with Japan, and the strategic importance of the Territory.

“Darwin is home to Japan’s single biggest investment outside of Japan, INPEX, and there are at least 40 years of identified future investment in the Territory through that project.

“Through our engagement with the Japanese to date, we have also identified job-creating opportunities in agribusiness, telecommunications and data. My next scheduled visit to Japan is in November, the week prior to Mr Abe’s visit to Darwin.

“It is vital Australia looks to the North, and develops stronger relationships through trade, defence and investment.

“The Territory is uniquely positioned to take advantage of growth in the Asian region, and we warmly welcome this historic visit by Mr Abe.”

Media contact: Cameron Angus - 0404 021 192

Jemena Signs Gas Transportation Agreement with Santos

Sonia Harvey — Fri, 21 Sep 2018 04:09:00 GMT

Leading energy-infrastructure company, Jemena, has today signed a new gas transportation contract with Santos to ship around 8 terajoules (TJs) of gas per day across the $800 million Northern Gas Pipeline (NGP).

Gas transported as part of the agreement will be used to provide energy for local mining and mineral processing operations in the Mount Isa region.

The new agreement means around 80 per cent of the NGP’s total available capacity in year one of operations has now been contracted.

Jemena’s Executive General Manager of Corporate Development, Antoon Boey, said the new contract reinforces the important role the NGP will play in supporting jobs and communities in regional Australia.

“Today’s announcement proves strategic investment decisions like the Northern Gas Pipeline can help to mitigate forecast gas shortages while bolstering local industry and strengthening the Northern Territory’s growing gas credentials,” said Mr Boey.

The agreement comes after Jemena announced it had signed a contract with Incitec Pivot Limited (IPL) to deliver 32TJs of gas per day to IPL’s Gibson Island facility in Queensland. This facility employs around 400 staff during normal operations and up to 800 staff during peak periods.

Mr Boey said the new agreement will see Jemena transport gas for three years from the first day of commercial pipeline operations for Santos.

“This agreement provides more much-needed gas to the mining and processing sector in the Mount Isa area, and is a positive for the local community, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry,” said Mr Boey.

Santos Managing Director and CEO Mr Kevin Gallagher said the NGP transportation agreement reached with Jemena is a great example of how Santos is collaborating across the supply chain to make domestic gas available where and when it is needed, efficiently and at competitive prices.

“This is a great commercial outcome for all the parties involved and it is also good for the east coast domestic gas market, connecting the Northern Territory into this supply grid,” Mr Gallagher said.

“It’s absolutely critical that we continue to open up new gas supply sources to service the domestic market as existing, mature fields decline.”

Construction of the Northern Gas Pipeline continues to track to schedule with first gas set to flow in late 2018.

Today’s agreement follows Jemena’s announcement that it has signed an agreement with Senex Energy to build, own, and operate the Atlas Gas Processing Plant and Pipeline, connecting Senex’s new ‘Atlas’ gas field in the Surat Basin in south-east Queensland with Jemena’s Darling Downs Pipeline and the Wallumbilla Gas Hub - the largest gas hub in the country.

For more information about the Northern Gas Pipeline visit www.jemena.com.au.

Jemena Media Contact 1300 331 239

Community Bulletin # 4 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Sun, 09 Sep 2018 03:42:03 GMT

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Government partners with CSIRO, Australia’s national science research agency Government this week signed a grant agreement with CSIRO’s GISERA (Gas Industry Social and Environmental Research Alliance) to engage the significant and trusted research capabilities of CSIRO to deliver independent and transparent advice to government on gas development in the Northern Territory.

The GISERA is an alliance involving Industry, Government and CSIRO contributing funds to undertake independent research projects relevant to the development and sustainability of the gas industry in regions. CSIRO’s GISERA aims are to:

• Carry out research and provide information for the benefit of all Australian communities in onshore gas regions and industry.

• Inform governments and policy-makers of key research outcomes.

Projects undertaken by GISERA are endorsed and effectively commissioned by a GISERA Regional Research Advisory Committee (RRAC). The committee reviews and approves all research projects, in order to ensure CSIRO’s independence.

The GISERA collaboration will progress research into the social, economic and environmental impacts of the onshore gas industry in the Northern Territory. The GISERA model will have a provision to include research partnerships with Northern Territory institutions and research bodies, and local business growth may be considered in project proposal development.

Read full bulletin here

Community Bulletin # 3 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Fri, 31 Aug 2018 03:44:21 GMT

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Update on Implementation It has been a little over a month since the release of the Implementation Plan for the recommendations of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

The six major reform areas are focused on the priority areas of:

• strengthening regulation;

• ensuring industry is accountable for its practices;

• safeguarding water and the environment;

• respecting community and culture;

• maximising the benefits and opportunities available to local businesses and communities; and

• ensuring planning for future development.

Agencies responsible for implementation actions continue to progress program planning to deliver the recommendations as outlined in the Plan.

Read full bulletin here

Origin commits to Beetaloo

Sonia Harvey — Fri, 17 Aug 2018 04:03:55 GMT

DESPITE some mixed results from Origin Energy yesterday, and a spooked market, one of the highlights of the day was a firm announcement on next year's Beetaloo Sub-basin shale gas plans.

The Beetaloo is considered one of the most prospective parts of the Northern Territory and now the Top End has lifted its fraccing moratorium, albeit with 135 conditions, Origin and partner Irish Falcon Oil and Gas have committed to a new appraisal program for next year.

The focus will be on the liquids-rich Kyalla Formation and Velkerri Shale.

The $60 million program is planned to identify a preferred play ahead of a 2020 pilot program and a possible declaration of commerciality the same year.

The area may have yields of up to 60 million barrels of oil equivalent or 60 million cubic feet of gas, according to RBC Capital Markets.

"We think the Beetaloo is an underappreciated facet of Origin's business," RBC said recently.

"We feel it represents a material growth option for an entity that is somewhat growth constrained given its strong market position in energy wholesaling and retailing and the low return dynamics of new renewables investments."

Until now the Velkerri B Shale has seen well tests while the Lower Kyalla Shale, which sits above it, has been less understood, although data from cores highlights the presence of both oil and gas.

Reservoir indicators include high porosity, hydrocarbon saturations, good source rock, middle to high condensate potential and which will likely be conducive to fraccing.

Previously what was known about the formation had suggested it was clay-prone and not suitable to fraccing.

The Beetaloo Sub-basin, part of the larger McArthur Basin, is estimated to hold almost 70% of the NT gas resources and the majority of relatively cursory exploration has been centred there.

Source: Energy News Bulletin

Community Bulletin #2

Sonia Harvey — Fri, 03 Aug 2018 03:45:45 GMT

CSIRO have commenced monitoring landscape methane concentrations in the Beetaloo Sub-basin

Scientists from the CSIRO’s Gas Industry Social and Environmental Research Alliance (GISERA) have this week commenced measuring naturally occurring methane in the Beetaloo Sub-basin.

The Northern Territory Government has partnered with CSIRO’s GISERA to conduct baseline measurement and monitoring of methane emissions in line with the recommendations set out in the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

The methane emissions research is the first in a series of projects expected to be rolled out over coming months that can help inform the Northern Territory’s decisions about potential development in the Beetaloo Sub-basin.

In order to provide a scientific understanding of seasonal variations, the research will include surveying in a range of seasons, across the dry, wet, and fire seasons.

Researchers will use mobile survey methods and technology on previously granted exploration permits in the Beetaloo Sub-basin area to capture this important baseline data.

CSIRO Research Director Onshore Gas and GISERA Director, Dr Damian Barrett said, “Such comprehensive information has not been available in Australia before, so this work will contribute significantly to the scientific understanding of natural methane levels in general, and provides a baseline for accurately quantifying any future industry impacts.”

Information about the recommendations specific to baseline monitoring can be found in the reform area of Safeguarding Water and the Environment.

Read full bulletin here

Northern Gas Pipeline Construction Complete

Sonia Harvey — Fri, 20 Jul 2018 04:10:10 GMT

Another major milestone has been reached on the Northern Gas Pipeline (NGP) with leading energy infrastructure company Jemena announcing that construction of the 622km pipeline is complete.

Antoon Boey, Executive General Manager of Corporate Development, Jemena confirmed the landmark was reached this week with all 622 km, and approximately 34,000 lengths of pipe, being welded, lowered in and now fully buried in the trench.

“The sheer scale of this project is enormous – the largest current gas pipeline project in Australia. This milestone is due to the fantastic effort of those working in remote, hot and often dusty conditions,” said Mr Boey.

“Overall the project is tracking on schedule. Apart from the pipeline, we’re thrilled that construction of the Mount Isa Compressor Station is finished and completion of the Phillip Creek Compressor Station in the Northern Territory is imminent.”

The pipeline and both compressor stations will now be rigorously checked before gas commissioning later this year.

“When Jemena was awarded the contract to develop and construct the NGP in 2015 we committed to constructing the pipeline on time, safely, providing training and employment opportunities for people from the communities surrounding the pipeline, and introducing competition into the east-coast gas market,” said Mr Boey.

“What we’re seeing today is these promises being fulfilled. We are so proud of how the NGP has provided training, development, and other opportunities to people from the communities surrounding the pipeline.

“Almost 800 jobs have been created as part of the pipeline’s planning and construction phase – around 700 of which have been awarded to people from local communities along the pipeline route. Plus we’ve seen $120 million spent with businesses in the Northern Territory and Queensland.”

Mr Boey said the Northern Territory had a unique opportunity to grow its economy and contribute to the east coast gas shortage.

“Jemena is progressing its plans to extend and expand the Northern Gas Pipeline and will continue to work with the community to understand how they can contribute to this next phase of growth and activity.

“Should development of the Beetaloo Basin proceed as expected, we are
seeking to invest significantly more across Northern Australia. This could create around 4,000 new jobs during the project’s construction phase, building on the skills the NGP has already brought to the region.”

On commissioning, the NGP can deliver 90 TJs of much needed gas per day, with 70 per cent of available capacity in year one having already been contracted to support manufacturing and jobs in Northern Australia.

Last month Jemena announced its agreement with Incitec Pivot Limited (IPL) to transport at least 32 TJs of gas per day to supply its Gibson Island facility. This follows Jemena’s foundation agreement with the Northern Territory’s Power & Water Corporation to transport 31 TJs of gas to IPL’s Phosphate Hill facility for 10 years.

“Discussions with other parties are also well advanced, and we remain confident that NGP will be fully contracted by the time it is operational later this year” said Mr Boey.

Media Contact: Murray Collins 0427 207 348

Community Bulletin # 1 Hydraulic Fracturing Inquiry Implementation

Sonia Harvey — Tue, 17 Jul 2018 03:48:06 GMT

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Implementation Plan Released The Northern Territory Government has released its plan to implement the recommendations of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry).

The Implementation Plan responds to the recommendations in the Final Report from the Inquiry.

The plan is in two parts. The booklet outlines government’s response to the Inquiry and how and when each key component will be implemented. This plan is supported by a list of all recommendations and further details how each will be implemented. Both the plan and the accompanying list of recommendations are available online at https://hydraulicfracturing.nt.gov.au

The recommendations deal with complex and often interrelated issues. They have been grouped into six major reform areas, and bring together recommendations that require a similar or coordinated response, such as developing mandatory Codes of Practice, or managing social and cultural impacts. The reform areas are:

• Strengthening Regulation;

• Ensuring Accountable Industry Practice;

• Safeguarding Water and the Environment;

• Respecting Community and Culture;

• Maximising Regional Benefits and Local Opportunities; and

• Planning for Industry.

Read full bulletin here

Jemena announces new gas transportation contract

Sonia Harvey — Mon, 25 Jun 2018 04:11:03 GMT

Gas from the Northern Territory will play a crucial role supporting Australian business and industry with leading energy-infrastructure company, Jemena, today announcing a new gas transportation contract for the $800 million Northern Gas Pipeline.

The new agreements will see Jemena partner with Incitec Pivot Limited (IPL) to transport at least 32 TJs of gas per day.

Jemena’s agreement with IPL is in addition to its 2015 agreement with the Northern Territory’s Power & Water Corporation to transport 31 TJs of gas to IPL’s Phosphate Hill facility for 10 years.

Jemena’s Acting Managing Director Antoon Boey said gas from the new agreement will supply Incitec’s Gibson Island facility in Queensland.

“Today’s announcement reinforces the leading role the Territory’s gas industry can play in creating and sustaining jobs in northern Australia,” said Mr Boey.

Mr Boey said the new agreement with IPL will see the manufacturer access an additional 32 TJs of gas per day from the expected commencement of the NGP’s commercial operations in December 2018 to 31 December 2019, with an option for extension.

“We have had a fantastic relationship with IPL, and are thrilled this additional gas will support IPL’s operations on Gibson Island, which employs a workforce of over 400 staff during normal operation and up to 800 staff during peak periods.”

“This gas gives much-needed certainty to Incitec, and is a positive for the people relying on the Gibson Island facility, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry.”

Today’s announcement means Jemena has contracted volume on the NGP to 70% of what will be its total available capacity in year one of its operations.

“Discussions with other parties are also well advanced, and we remain confident that NGP will be fully contracted by the time it is operational later this year” said Mr Boey.

He said the NGP’s construction continued to track to schedule, with first gas to flow late this year.

Today’s agreement comes shortly after Jemena announced that it has signed an agreement with Senex Energy to build, own, and operate the Atlas Gas Processing Plant and Pipeline, connecting Senex’s new ‘Atlas’ gas field in the Surat Basin in south-east Queensland with Jemena’s Darling Downs Pipeline and the Wallumbilla Gas Hub - the largest gas hub in the country.

Jemena Media Contact: 0427 207 348

Gas Pipeline Trainees Graduate

Sonia Harvey — Thu, 24 May 2018 04:11:57 GMT

Twelve trainees will today graduate from Jemena’s Gas Operator Training Program, marking the end of the $800 million Northern Gas Pipeline (NGP) project’s formal training and development package.

Northern Gas Pipeline Project Director, Jonathan Spink said more than 70 people from local communities had completed formal training and development programs as part of the NGP project, with graduates going on to secure employment on the NGP or in other parts of the gas industry.

To date, more than 375 jobs in regional and remote parts of the Northern Territory and Queensland have been generated by the NGP, including over 260 jobs for Indigenous Australians from the communities surrounding the pipeline route.

“From the outset we have been committed to creating opportunities for local people as part of the NGP project. Today’s graduates have helped us deliver on this vision and are to be commended for their dedication and hard work as trainees,” said Mr Spink.

“As we progress plans to expand and extend the NGP, we hope to deliver additional training and employment opportunities for people from the communities surrounding the pipeline route. While it is early days, we expect this expansion to create around 4,000 jobs across northern Australia at an investment of approximately $4 billion.”

Graduates of the Gas Operator Training Program completed units from the Certificate II in Gas Supply Industry Operations and are now well placed to apply for entry-level opportunities in the oil and gas industry.

Jemena expects to select two graduates of the six-week program to complete a Certificate III in Gas Supply Industry Operations after which they will commence apprenticeships as part of the Gas Operations Team.

Reaching key project milestones

Mr Spink said Jemena’s NGP project continues to track to schedule with the project achieving a number of key milestones over the last fortnight.

“In 2017, we constructed around 405km of pipeline and are well on the way to building the remaining 217km of pipeline this year. At this stage, we expect to have mainline welding completed by mid-June. Once welding has been finalised, the pipeline will be buried and safety tests will be conducted prior to gas being introduced into the pipeline later this year. At the same time, work on the Mt Isa and Tennant Creek Compressor Stations continues to track to schedule.”

To date, the NGP has created more than 770 jobs as part of its construction and planning phases.

More than 33,000 individual pieces of pipe measuring between 18 – 20 metres each have been laid out across the 622km NGP route.

For more information about the Northern Gas Pipeline visit: http://jemena.com.au/industry/pipelines/northern-gas-pipeline

Jemena Media Contact: 0428 742 804

Dr David Ritchie Appointed to Oversee Implementation of Fracking Reforms

Sonia Harvey — Fri, 20 Apr 2018 06:18:47 GMT

Chief Minister Michael Gunner today announced that Dr David Ritchie would be appointed as the independent officer to oversee implementation of the 135 recommendations from the scientific inquiry into hydraulic fracturing.

Mr Gunner said that Dr Ritchie’s wealth of experience would help give the community confidence that all 135 recommendations would be thoroughly implemented.

“Dr Ritchie brings over 20 years of experience as a Chief Executive Officer to this role including heading the Department of Natural Resources, Environment and the Arts, and the Aboriginal Areas Protection Authority,” Mr Gunner said.

“As a member of the inquiry panel, Dr Ritchie’s knowledge and familiarity with the recommendations of the report make him ideally placed to ensure implementation is done honestly and effectively.

“There are passionate Territorians who were hoping for a different decision this week and some are concerned about Government’s capacity to implement these reforms,” Mr Gunner said.

“I want every Territorian to be confident that we will faithfully implement every recommendation so we can benefit from the jobs and wealth creation of this industry while also protecting our precious environment.

“The appointment of Dr Ritchie will ensure implementation is transparent and that the public can hold the Government to account.”

Dr Ritchie’s areas of specialisation include Cultural history and engagement, Natural Resource Management, Public Policy, Governance, Risk Assessment, Organisational Development and Community Engagement.

He is the current Chair of the Northern Territory Planning Commission.

NT Innovation: Remote 3D printing tech for oil and gas among NERA winners

Sonia Harvey — Fri, 20 Apr 2018 06:16:42 GMT

A 3D printing technology for metal that can be used in the operations is among the oil and gas projects to share in $1.8 million in new National Energy Resources Australia funding.

The new technique, being developed with technology firm SPEE3D, Charles Darwin University and industry partner Inpex, can operate around 1000 times the speed of conventional 3D printing at a fraction of the cost.

It is said to have the potential to revolutionise industrial activities in remote areas by allowing onsite metal part production.

"The technology will enable operating environments to fabricate necessary parts on site and limit costly delays associated with downtimes that can be in the order of tens of millions of dollars," NERA said.

It is among seven applications that received new co-funding from NERA's $15.6 million Project Fund, upon the formalising of contracts, and is said to align with the organisation's Sector Competitiveness Plan 10 year roadmap for the national upstream energy sector.

NERA chief executive Miranda Taylor said the new projects supported the organisation's goals.

"Projects that receive NERA funding are selected to deliver results on a national scale and have sector-wide impact, assisting the energy resources sector unlock a potential $10 billion in value that NERA has identified," Taylor said.

She said the projects would aid in ensuring Australia's global competitiveness by adapting to the changing global and domestic energy market and accelerating technological change through innovation and the improved transfer of knowledge and technology.

The seven new projects bring the total number of projects NERA is delivering across Australia to 32 and the number of project partners directly involved to more than 80.

Other projects to receive funding were a collaboration between CSIRO, the University of Western Australia and industry partners including AWE and Whitebark Energy to develop systems to monitor water, soil, atmospheric and seismic conditions to measure the impact of past and future oil and gas activities in the northern Perth Basin.

From this, a publicly-available scientific database will be established to provide reliable baseline methane data to enable ongoing monitoring.

"The project will lead to better informed decisions about the use of water resources in the area and provide the community and regulators with the means to make informed decisions about oil and gas activities in the Perth Basin," NERA said.

Another project to increase understanding of the Great Artesian Basin and how it relates to resource development project will be led by the University of Queensland and bring together a team of independent reviewers and contributors including Australia Pacific LNG, Santos and Arrow Energy.

An effort to reduce hydrate risk in subsea jumpers connecting to larger manifolds and pipelines will be once again be led by the University of WA and take in oil and gas partners including Chevron, Total E&P UK, Woodside and OneSubsea.

A virtual operating environment project led by Quadrant Energy and bringing together Curtin University Innovation Centre, Flicq, Optika and AWS will develop and install a novel integrated system to provide early notice of changes in plant operating conditions such as leaks or rotating equipment faults.

Origin Energy and the University of Sydney will develop a machine learning-based sub-surface geological model and an Australia-wide project to reduce the assessment burden on exploration companies associated with new survey activities will take in partners including BP, Quadrant, Caltex, CRC Care and CSIRO.

Northern Australia Infrastructure Facility investment rules relaxed

Sonia Harvey — Wed, 18 Apr 2018 05:24:55 GMT

The Turnbull government’s highly vaunted Northern Australia Infrastructure Facility program will be overhauled to “make it easier for projects to attract finance” from the fund.

With the NAIF having processed only one major project since its establishment in mid-2016, Resources Minister Matt Canavan will today announce changes in a move to “increase its flexibility and improve its potential” and accelerate investment in northern Australia.

Mr Canavan said the program had “proven more challenging than we thought”.

“It’s a challenging exercise. It’s quite an innovative way of seeking finance for infrastructure,” Mr Canavan said. “When you find that what you expected is not working as intended, you change tack ... and that’s what we’re doing with these changes.”

The government will amend the investment mandate of the program, based on findings of an independent review of the facility by prominent business leader Tony Shepherd.

“Mr Shepherd consulted widely with NAIF, investors, project proponents and governments. He found the important need to develop the north still exists, but there have been challenges to making it happen,” he said.

“The government shares this view and we are committed to developing industry and job opportunities in northern Australia.

“We will implement changes to the NAIF investment mandate recommended by the expert review, in response to a key finding that (it) is too restrictive.”

Mr Canavan said he had been advised that a “number of existing proposals could be finalised because of these changes”.

“I’m also hopeful that this can be a reset and relaunch that attracts new interest to look again at the NAIF for finance to develop the north,’’ he said.

The program offers up to $5 billion over five years in concessional finance to “encourage and complement” private sector investment in northern Australia infrastructure, including developments in airports, communications, energy, ports, rail and water.

Its board last year made its first investment decision, indicating to the government it would offer financial assistance of about $16.8 million for the Onslow Marine Support Base Project in Western Australia.

Mr Canavan said the changes to the program’s investment mandate would include the removal of the 50 per cent cap, increasing the amount of finance available to infrastructure projects by “allowing the NAIF to finance up to 100 per cent of a project’s debt”.

The change would avoid the federal government inheriting the majority of financial risk in a project.

“There are currently 17 projects in the due diligence and execution phases across all three northern jurisdictions. There are seven in the Northern Territory, five in Western Australia and five in Queensland,’’ Mr Canavan said.

“There are 90 active inquiries in the pipeline. These are from diverse sectors including energy generation and gas pipelines, transport, tourism, agriculture, manufacturing, water infrastructure and communications.”

Source: The Australian

Gas will soon flow down the Jemena pipline

Sonia Harvey — Tue, 17 Apr 2018 06:03:26 GMT

The NT Government has lifted its moratorium on fracking.

NT Chief Minister Michael Gunner today announced the government will allow the development of onshore shale gas industry.

A moratorium had been placed over the industry for the past year has been lifted.

Energy company Jemena has welcomed the decision to lift the ban on hydraulic fracturing.

Following today’s decision, Jemena intends to progress its plans to extend and expand the $800 million Northern Gas Pipeline (NGP).

Jemena expects the work to create around 4000 jobs across northern Australia, with early estimates placing the cost of the project at around $3 - $4 billion.

Jemena’s managing director Paul Adams said the NT had great potential as the future heartland of Australia’s gas industry.

“Today’s decision paves the way towards a well-regulated industry that benefits the people of the Territory while helping to bring much needed additional gas to where it is needed most,” Mr Adams said.

“This is good news for locals who can expect to benefit from additional jobs and training opportunities in the gas industry, as well as Territory businesses who will benefit directly from contracts on upcoming projects.

“This decision now gives us the certainty we need to move forward, and we encourage the Territory Government to maintain pace and move to swiftly implement the inquiry’s recommendations,” he said.

“Provided sufficient and appropriate gas is proven and will be available for transportation, our ambition is to commence preliminary works on the extension and expansion of the Northern Gas Pipeline in 2019.”

Mr Adams said the NGP will be completed by late 2018.

It will initially transport around 90 terajoules of gas, with the extension and expansion of the Northern Gas Pipeline having the potential to bring around 700 terajoules of gas – enough gas to meet the average daily domestic gas needs of Brisbane, Sydney, and Adelaide – to market.

Much controversy surrounded the year long inquiry into hydraulic fracturing.

The Seed Indigenous Youth Climate Network has slammed the NT Government for lifting the ban, saying the decision to allow gas companies to frack more than half of the NT will destroy land and water.

Seed national director Amelia Telford said Territorians will not stand down until the NT government bans dangerous gas fracking for good.

“The Gunner Government has betrayed the people of the Northern Territory and Aboriginal communities by allowing fracking companies to poison our water, land and climate,” Ms Telford said.

“No regulations can stop the dangerous greenhouse gas pollution that will warm our climate and make the Northern Territory virtually unlivable in decades to come.”

Source: North West Star

APPEA: Northern Territory moratorium lifted; jobs, investment and energy benefits to flow

Sonia Harvey — Tue, 17 Apr 2018 04:30:56 GMT

The Australian Petroleum Production & Exploration Association welcomed today's announcement by the Northern Territory Government that the near two-year moratorium that stalled onshore gas exploration and development would end, enabling the creation of thousands of jobs in the Territory, billions of dollars of government revenue and the delivery of much-needed energy supply for the NT and the nation.

The Government has accepted the key finding of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory that any risks associated with onshore gas development and hydraulic fracturing can be managed by effective regulation.

APPEA NT Director Matthew Doman welcomed the Government’s decision to support development of the NT’s abundant gas resources but warned the manner and timeframe in which it implemented the Inquiry’s 135 recommendations would be critical in determining the commercial viability of the industry.

In particular, the Government has accepted that 30 of the recommendations must be brought into effect before exploration activity can resume.

“If they are to be implemented they must be addressed within the next six months to ensure the industry can be on the ground exploring in the 2019 dry season,” Mr Doman said.

“Businesses, contractors and workers in the Territory are counting on the quick ramp up of the gas industry to get the Territory moving again. Explorers are ready to resume their activities as soon as the Government gives the green light.

“As soon we can get back to work, we will again employ local people, engage local companies and resume royalty payments to host Traditional Owners. Our exploration activity will build our knowledge of the gas resources, groundwater and the environment that contains them — and enable informed decisions about future development.

“APPEA’s member companies stand ready to invest billions of dollars in new projects in the Territory. We are determined to do this in a safe and sustainable manner, and to generate real benefits for all Territorians.”

APPEA Chief Executive Dr Malcolm Roberts said states opposed to onshore

gas development should be reconsidering their positions.

“As we look to Friday’s COAG Energy Council meeting, the Territory

Government has sent an important message to other jurisdictions about

the energy security, emissions reduction and economic benefits of natural

gas. It is time for those other jurisdictions to hear that message,” Dr

Roberts said.

Media contact:

Kieran Murphy – 0408 151 922

kmurphy@appea.com.au

30 recommendations to be implemented immediately for fracking moratorium lift

Sonia Harvey — Tue, 17 Apr 2018 03:38:56 GMT

Key recommendations that must be implemented prior to any further exploration approvals being granted

1. Development and implementation of a code of practice for the decommissioning of onshore shale gas wells.

2. Development and implementation of a code of practice to ensure the integrity of onshore shale gas wells.

3. Well integrity management systems and plans mandated for all onshore shale gas wells to be hydraulically fractured.

4. Development of a wastewater management framework, including an auditable system for tracking movements of wastewater.

5. Gas companies must have a water extraction licence under the Water Act to extract water for hydraulic fracturing.

6. Prohibition on the use of surface water for hydraulic fracturing.

7. Prohibition on the installation of groundwater extraction bores to supply water for hydraulic fracturing within 1km of an existing or proposed domestic or stock water supply bore.

8. Prohibition on the reinjection of wastewater into deep aquifers and conventional reservoirs.

9. Mandatory disclosure of all chemicals (including metals, salts and NORMs) in hydraulic fracturing fluids, flowback and produced water.

10. Petroleum wells be constructed to at least Category 9 or equivalent.

11. Prohibition on petroleum wells being drilled within 1km of an existing or proposed groundwater supply bore.

12. Groundwater must be monitored using multilevel monitoring bores.

13. Prohibition on the discharge of treated or untreated wastewater into waterways.

14. Completion of a baseline weed assessment in all areas of the exploration permit accessed by a gas company.

15. Gas companies must have a dedicated weeds officer.

16. Gas companies must have an approved weed management plan in place.

17. Development and implementation of a code of practice for the ongoing monitoring of methane from shale gas wells.

18. Monitoring of methane concentrations for a six month period.

19. Requirement for ongoing methane monitoring and reporting.

20. Prohibition on all exploration and production activity within 2km of any habitable dwelling.

21. Existence of an Authority Certificate.

22. ‘No go zones' declared.

23. The community must be given an opportunity to comment upon all draft environmental management plans submitted to the Government for approval.

24. Requirement that all reports and notices on environmental incidents are publicly disclosed.

25. Enforceable codes of practice be mandated for drilling and hydraulic fracturing activities.

26. Cumulative impacts of petroleum and other activities in the region must be considered by a decision-maker.

27. Open standing for judicial review of decisions made under the Petroleum Act and Petroleum Environment Regulations.

28. A monitoring and compliance strategy must be developed and implemented.

29. A whistleblower hotline must be established and any reports to it must be immediately investigated.

30. There must be a clear separation between the agencies responsible for environmental and promotional approvals.

FRACKING MORATORIUM LIFTED – STRICT LAWS TO BE IN PLACE BEFORE EXPLORATION OR PRODUCTION CAN OCCUR

Sonia Harvey — Mon, 16 Apr 2018 23:30:47 GMT

Chief Minister Michael Gunner today announced the Northern Territory Government had accepted all 135 recommendations of the independent fracking inquiry.

Mr Gunner said implementation of the recommendations of the Final Report of the Inquiry would now begin so that Territorians could benefit from the creation of new jobs while protecting our unique natural environment for generations to come.

“We promised to be a Government that restores trust, listens to the community and creates jobs,” Mr Gunner said.

“We promised an independent, scientific inquiry after which we would either ban fracking or allow it in highly regulated circumstances in tightly prescribed areas.

“We have kept our promise.

“We have accepted the key finding of the report – that if all the recommendations are implemented the risk from fracking can be reduced to an acceptable level.

“We have also accepted the Inquiry’s advice about no go zones and coupled with areas where there is no petroleum potential, 49% of the Territory will be frack free, including in National Parks, Conservation Areas, Indigenous Protected Areas, towns, residential and strategic assets, and areas of high cultural, environmental or tourism value.

“In the remainder of the Territory, strict new laws and regulations will be put in place to ensure that when fracking takes place, we protect the environment, the cultures and lifestyles that rely on it, and the many tourism, pastoral and agricultural jobs that depend on it.

Some of the key elements of these new laws and regulations include:

Ensuring all Environmental Management Plans for fracking must be assessed by the EPA and signed off by the Minister for the Environment;
Strict new requirements that must be met before exploration approval is granted including codes of practice for well integrity and well decommissioning, development of wastewater management frameworks, the requirement for gas companies to obtain a water license;
Strict new requirements that must be met before production can take place including the development of robust and transparent monitoring strategies, discussions with industry and pastoralists regarding land access requirements and compensation, and release of all environmental management plans for public comment;
Broad standing to seek judicial and merits review of statutory decisions;
Broad new powers to sanction non-compliance, civil enforcement proceedings and increased criminal penalties for environmental harm.

An independent officer will be appointed to oversight the implementation of all 135 recommendations.

“We understand that many Territorians are concerned about increased greenhouse gas emissions from fracking and as recommended by the inquiry, I have written to the Prime Minister and the Federal Leader of the Opposition seeking their agreement to partner with us in offsetting all additional emissions,” Mr Gunner said

“In addition, this Government will soon be seeking comment on draft Climate Change and Environmental Offset policies which we want to finalise before the end of the 2018.”

“These reforms will require significant additional resources and we have approved $5.33 million over three years to implement the 135 recommendations. This will ensure that our unique environment is protected while much needed new jobs are created – particularly in remote and regional parts of the Territory.

“In line with the recommendations of the report, the Government will be ensuring industry pays its fair share through an appropriate cost recovery model.

“I understand that many Territorians feel passionately about fracking and were hoping for a different announcement today.

“I want to assure all Territorians that we will faithfully implement all the recommendations of the report and I encourage those who are passionate about protecting our precious natural environment to stay engaged through this process of reform,” Mr Gunner said.

Work on a detailed implementation plan for the 135 recommendations of the Final Report will begin immediately and be completed and released to the public in July this year.

As part of the ongoing implementation a community and industry reference group will be created to ensure Territorians continue to have a formal voice in the process.

Further information on the Government’s response to the Final Report of the Inquiry and fact sheets can be found at hydraulicfracturing.nt.gov.au

Media Contact: Cameron Angus 0404 021 192

APPEA endorses need for pragmatic energy approach

Sonia Harvey — Fri, 13 Apr 2018 02:17:46 GMT

APPEA welcomed comments today from the Minister for Energy and the Environment, Josh Frydenberg, confirming the importance of a pragmatic, bipartisan approach to energy policy.

“APPEA strongly supports co-ordinated action by all governments to provide long-term policy certainty to the energy market. Politicians across the spectrum need to put aside entrenched positions to agree a practical way forward so investors can return to the market,” said APPEA Chief Executive Dr Malcolm Roberts.

“The National Energy Guarantee offers an opportunity to cut emissions without jeopardizing reliable supply. This is a tough balancing act but Australian customers need both cleaner energy and reliable energy.

“APPEA strongly supports the Minister’s call for State governments to address the pressure on gas supply and prices by lifting their restrictions on developing local gas reserves. Gas is pivotal to ensuring energy security, its on-call supply an ideal complement to intermittent renewable sources.

“Gas will also contribute to lowering emissions from the generation sector.

“The meeting of energy Ministers later this month is an opportunity which should be seized by all governments to end the division and confusion around energy policy.”

Source: APPEA

Petroleum Club NT becomes Energy Club NT

Sonia Harvey — Thu, 12 Apr 2018 05:00:00 GMT

Leading the way with organisation name change to reflect industry trends and innovation

Petroleum Club NT, an industry networking organisation previously focused on oil and gas businesses, has formally changed its name to Energy Club NT as voted by a meeting of members on 28 February 2018.

The change will open the remit for the organisation to add alternative energy to the mix and continue to focus on delivering a premium networking platform for the various sub-sectors in the energy industry and provide education and information sharing opportunities for businesses with an interest in the Northern Territory.

“Hydrocarbons will continue to play an important role in energy production, but the industry has showed a significant trend in adding alternative energy sources to the mix. The advantage of integrating new technologies will also have a positive effect on reducing carbon emissions, costs and creating new and unprecedented opportunities.” said Ms Harvey, Chief Executive Officer of Energy Club NT.

“There is a clear movement in the industry for collaboration across the energy sub-sectors which will continue to become more prevalent as we move towards our energy future.” said Ms Harvey.

“Renewables and oil and gas projects can coexist and provide innovative solutions across the industry. The expansion for Energy Club NT also aligns with the Norther Territory Government’s 50% Renewable Energy target by 2030 opening opportunities for investment and business growth in the region.” Ms Harvey went on to say.

“We remain committed to delivering our services to the oil and gas sector and look forward to welcoming new members from alternative sub-sectors to our organisation.” she said.

The incorporation change has been approved to take effect from 28 March 2018.

Petroleum Club NT was established in 2015 and has been very successful engaging membership across a diverse demographic of stakeholders and businesses in the oil and gas industry. The organisation will continue to provide opportunities for networking, education and information sharing for the industry in Northern Territory bringing businesses together to support a sustainable energy future.

Download a copy of the media release here.

Australian Energy Week - 8-11 May 2018 - Melbourne

Sonia Harvey — Tue, 10 Apr 2018 04:05:19 GMT

Australian Energy Week is set to be the most important event in 2018 for all stakeholders in the future of the energy industry, from generation right through to end use.

Australian Energy Week is the annual meeting place for stakeholders of all levels from the entire energy supply chain. From CEOs to new graduates, energy traders to engineers. And everyone in between.

It’s where you can network with over 500 of your peers and hear from more industry leaders than any other event, representing every corner of the market.

You can choose from 6 different content streams, 4 in-depth learning sessions as well as all-new technical roundtables. So no matter what your role or interest in the sector, Energy Week will be relevant to you.

http://www.energyweek.com.au/

Final report handed down - NT Fracking Inquiry

Sonia Harvey — Tue, 27 Mar 2018 04:27:46 GMT

The Independent Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry) released its Final Report today. Read the full update.

The Independent Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory (Inquiry) presented its Final Report (Final Report) to the Northern Territory Government today.

The Final Report comprises three separate documents: the Final Report (Book 1); the Appendices (Book 2); and the Executive Summary (Book 3). The Final Report contains 135 recommendations.

The Final Report represents the culmination of 15 months’ of work by the Inquiry, during which time the Panel:

met 12 times;
held 52 community forums, including 37 in regional and remote areas, and 15 in urban centres;
conducted 151 public hearings;
published 31 Community Updates; and
received 1257 submissions.

The Chair of the Inquiry, Justice Rachel Pepper, said “this Report provides recommendations to mitigate to acceptable levels the identified risks associated with any onshore shale gas development in the NT if the Government lifts the moratorium.”

“No industry is without risk, and any onshore shale gas industry is no exception. However, it is the Panel’s opinion, expressed in the Final Report, that if all of the recommendations are implemented, the identified risks associated with any onshore shale gas industry can be mitigated or reduced to an acceptable level, and in some cases, the risks can be eliminated.”

Justice Pepper said that while the Inquiry’s scope was broader than that of previous inquiries into unconventional gas in the Northern Territory, the Inquiry nevertheless built upon the previous bodies of work. In addition, this Inquiry had a mandate to consult widely, unlike previous inquiries and reviews.

“The Inquiry has taken its mandate to consult widely very seriously through its stakeholder engagement, live-streamed public hearings and community forums, held throughout the Territory.”

Justice Pepper said the Panel has made findings and recommendations in its Final Report based on the best most recent and relevant available evidence, which included the views of the community expressed during the consultation process.

In addition to strengthening many of the recommendations made in the Draft Final Report, the Final Report includes:

an implementation Chapter, which states clearly that all of the recommendations in the Final Report must be implemented;
greater clarity on the timing of the implementation of the recommendations; and
the inclusion of a requirement that there be no net increase in greenhouse gas emissions in Australia as a consequence of the development of any onshore shale gas industry in the Northern Territory.

In releasing the Final Report, her Honour emphasised that it was not the role of the Inquiry to recommend whether or not the moratorium on hydraulic fracturing in the Northern Territory be lifted.

“Today the Inquiry delivered its Final Report to the Government and in doing so fulfilled its Terms of Reference. The decision whether or not to retain the ban on hydraulic fracturing in the Northern Territory is a political decision that rests with the Government alone.”

Justice Pepper thanked the people of the Northern Territory for their enthusiastic engagement with the Inquiry. She also thanked the Taskforce supporting the Inquiry for their considerable assistance.

The Inquiry’s Final Report is available to download at www.frackinginquiry.nt.gov.au

CUB gets drunk on solar

Sonia Harvey — Tue, 20 Mar 2018 04:03:34 GMT

AUSTRALIA’S largest brewer Carton & United Breweries (CUB) has signed a 12-year power purchase agreement for 74,000 megawatt hours per year of solar energy for its manufacturing plants.

German company BayWa will provide the power from its 112MW Karadoc solar farm in Mildura, Victoria, which is currently under construction by Melbourne-based Beon Energy Solutions.

BayWa has already constructed a 4km grid connection for the plant.

CUB CEO Jan Craps hailed the deal as significant step toward its vision of securing 100% of its electricity from renewables.

"As one of Australia's first and leading manufacturing businesses, we have a responsibility to ensure we play our part in tackling climate change and a range of environmental challenges," Craps said.

CUB is also moving toward onsite solar generation, which will see solar panels on the roofs at each of its breweries, and says it is Yatala brewery is a world leader in water efficiency.

Craps said the investment with BayWA also stacked up economically, with CUB now expected to pay a reduced price to power its operations.

"Moving to renewable energy will ensure that we have certainty of supply and pricing, something that is incredibly important for a manufacturing business like ours."

CUB sites will remain connected to the grid, allowing excess capacity to be fed back into the system.

CUB are a supporting partner of Energy Club NT.

ConocoPhillips, Santos push ahead with $500m plan to develop Barossa gas field

Sonia Harvey — Thu, 08 Mar 2018 03:54:37 GMT

ConocoPhillips and Santos are pushing ahead with their $500 million plan to develop the Barossa gas field off Australia's north coast to replace declining supplies for Darwin LNG, with Santos declaring that Sunrise gas has "virtually no chance" of being processed there despite this week's milestone treaty with Timor-Leste.

The treaty, signed in New York on Tuesday US time, only allows for gas from the Sunrise field to be processed in either Conoco's Darwin LNG plant or at a new LNG plant in Timor-Leste, which the Sunrise partners have always ruled out as too risky.

But Conoco and its partners in the Barossa venture, Santos and Korea's SK Group, are resolved on Barossa gas as the lead candidate to replace the declining gas from the Bayu-Undan offshore field to supply Darwin LNG, with the field to be empty by 2022-23.

Santos, which also owns a stake in Darwin LNG, believes without doubt that Barossa is "the only field that can provide certainty on backfill for DLNG and deliver gas when DLNG will need it in the early 2020s," said Bruce Clement, head of conventional oil & gas.

"As one of the owners of DLNG, we want that certainty and we want to know that gas is definitely on the way to keep that plant full as Bayu-Undan comes off plateau," Mr Clement said.

Read more here in the Financial Review.

Follow: @FinancialReview on Twitter | financialreview on Facebook

Floating LNG seemingly not an option for Sunrise gas under landmark treaty

Sonia Harvey — Wed, 07 Mar 2018 04:09:25 GMT

The signing of a landmark sea boundary treaty between Australia and Timor-Leste is set to revive stalled discussions over the lucrative Sunrise gas project, but operator Woodside Petroleum immediately signalled that the tough work on agreeing how to develop the resource is still to come.

Woodside said it is "disappointing" the conciliation process over boundaries and Sunrise failed to strike a deal on the development design after the treaty apparently ruled out its favoured option of a floating LNG plant.

The treaty, signed in New York on Wednesday Australian time by senior ministers of the two nations, represents a major shake-up in the administration of oil and gas fields in the Timor Sea.

It will do away with the long-standing Joint Petroleum Development Area, a region jointly administered between the two nations, shifting resources in that area wholly into Timor-Leste territory.

But most significantly for Woodside, the terms of the deal only cover two onshore options – either Timor-Leste or Darwin – for processing the 5.13 trillion cubic feet of gas from the large Sunrise field. The venture, in which Shell and ConocoPhillips are major partners, also involves about 226 million barrels of oil-like condensates.

The idea of offshore processing through a circa $US13 billion ($16.6 billion) floating LNG plant, the concept most recently favoured by Woodside, is not covered in the treaty nor in the Permanent Court of Arbitration's conciliation agreement. The treaty was agreed after a long-running dispute on sea boundaries between the two nations which forced the Sunrise partners to put their project on the back burner several years ago.

Shell CEO: Climate change is our biggest issue

Sonia Harvey — Wed, 07 Mar 2018 04:00:25 GMT

Royal Dutch Shell Chief Executive Ben van Beurden said Wednesday that climate change is the biggest issue facing the energy sector, encouraging the European oil major to invest more in cleaner-burning gas and renewable energy.

Shell aims to cut its carbon footprint in half by 2050 while shifting its roughly 50-50 oil and gas balance to a portfolio that's closer to 70 percent gas, van Beurden said at the CERAWeek by IHS Markit conference in Houston. Shell already is the world's leader in liquefied natural gas.

"There's no other issue with the potential to disrupt our industry on such a deep and fundamental level," van Beurden said of climate change and the need to help meet the Paris climate accord goals, even though the United States plans to split from the agreement under the Trump administration.

The emphasis goes beyond making Shell's own operations cleaner and more efficient because most of the emissions come from Shell's products after they are sold. So Shell intends to invest more in offshore wind farms, biofuels, carbon capture projects and the planting of trees and forests.

SANTOS CEO discusses business turnaround

Sonia Harvey — Fri, 02 Mar 2018 04:37:29 GMT

View NAB Trade video interview with Kevin Gallagher here.

PCNT members vote for name change - Energy Club NT

Sonia Harvey — Thu, 01 Mar 2018 04:44:33 GMT

PCNT members held a special resolution meeting lat night prior to the February Industry dinner. Member unanimously agreed for an organisation name change to Energy Club NT to reflect the change in industry trends and language and also open the Club's remit to include alternative energy generation, transmission and supply.

An exciting change for the new year with more details to be announced once the administration of changes has been approved.

AGR in home stretch on Laminaria intervention

Sonia Harvey — Wed, 28 Feb 2018 04:20:07 GMT

A SUBSEA well intervention at Northern Oil & Gas Australia’s Laminaria field is on track to be carried out in April or May this year, with contractor AGR close to completing a year’s worth of planning.

The project in the Timor Sea will employ Stena Drilling's Stena Clyde semi-submersible rig over an estimated 30-day period.

NOGA operates the Laminaria and Corallina oil fields and associated infrastructure, including the Northern Endeavour floating production and storage unit.

AGR is providing full well management services for the intervention, including engineering and design, preparation of the operations management plan and other regulatory documents, and supervision and execution.

The contract is one of a number of subsea maintenance campaigns it has managed for NOGA.

AGR Asia-Pacific business development manager Andy Perchard said the company was glad to be continuing the working relationship.

"We're also looking forward to working with Stena again, having used the Clyde for a number of exploration and abandonment campaigns in Australia in recent years," Perchard said, adding that AGR was confident the well intervention would be a huge success.

Australia accounts for 50 of the 530 wells AGR has drilled globally.

Source: EnergyNewsBulletin.net

Australia and East Timor agree on maritime border, 'pathway' to develop gas field

Sonia Harvey — Mon, 26 Feb 2018 04:17:05 GMT

East Timor and Australia have reached an agreement for a treaty on their disputed maritime border and on a "pathway" to develop the giant Greater Sunrise offshore gas fields, the Permanent Court of Arbitration in The Hague says.

Under the agreement, the share of revenue from the offshore gas field will differ depending on downstream benefits that arise from "different development concepts", the statement released following talks in Kuala Lumpur said.

The agreement would establish a maritime boundary in the Timor Sea for the first time.

Australia had sought a boundary aligned with its continental shelf, but East Timor argued the border should lie half way between it and Australia — placing much of the Greater Sunrise fields under its control.

The long-running dispute had led the owners of Greater Sunrise — Woodside Petroleum, ConocoPhillips, Royal Dutch Shell and Japan's Osaka Gas — to shelve the project.

The fields are estimated to hold 144 billion cubic metres of gas and 226 million barrels of condensates, which analysts have previously estimated could be worth up to $50 billion.

However, development could be at least a decade away, with Woodside looking at the latter half of the next decade.

Oil, Gas Will Account for Over Half of World's Energy by 2040

Sonia Harvey — Wed, 21 Feb 2018 04:23:31 GMT

Oil and gas will account for over half of the world’s energy by 2040, according to BP plc’s latest Energy Outlook.

The outlook’s ‘evolving transition’ scenario highlights that demand for oil will grow over much of the period to 2040 before plateauing in later years. All the demand growth is said to come from emerging economies, with the growth in supply driven by US tight oil in the early part of the outlook. OPEC is said to take over from the late 2020s as Middle East producers adopt a strategy of growing market share.

The transport sector will continue to dominate global oil demand, according to BP, accounting for more than half of the overall growth. Most of the growth in energy demand from transport, which flattens off towards the end of the outlook, comes from non-road (largely air, marine, and rail) and trucks, with small increases from cars and motorbikes. After 2030, the main source of growth in the demand for oil is from non-combusted uses, particularly as a feedstock for petrochemicals.

Natural gas demand is anticipated to grow strongly over the period, according to the scenario, overtaking coal as the second largest source of energy. By 2040, the US is said to account for almost one quarter of global gas production, with global LNG supplies more than doubling.

“Under most scenarios we look at oil demand continues to grow over the next 15-20 years, the underlying story there is fast growth in developing economies,” BP Group Chief Economist Spencer Dale said in a BBC Radio4 interview on Wednesday.

BP Group Chief Executive Bob Dudley said BP’s strategy has to be resilient and adaptable to significant changes in the energy industry.

“This outlook considers the possible implications of some of these changes and helps inform our long-term planning. We cannot predict where these changes will take us, but we can use this knowledge to get fit and ready to play our role in meeting the energy needs of tomorrow,” Dudley said in a company statement.

See RigZone article here.

Onshore gas industry could invest $1.35 billion a year into economy and create 1500 local jobs, new report shows

Sonia Harvey — Sat, 17 Feb 2018 04:31:17 GMT

THE onshore gas industry could begin investing $1.35 billion a year within the next five years creating nearly 1500 local jobs, a new report shows.

The Pangaea Beetaloo Basin Development Model for Public Benefit has been derived from Pangaea’s 2015 work program and US shale gas industry well and logistics volume data.

Pangaea’s report was sent to the Gunner Labor Government and the Scientific Inquiry into Hydraulic Fracturing last night.

The model has been built around a concept of development units. Under this model there is an exploration unit, an appraisal unit and a production unit.

The report details the number of jobs, the expenditure and the education qualifications required to fill the positions.

It leverages some of its work off already completed work by Deloittes who completed a report in 2015 and an ACIL Allen report prepared for the Scientific Inquiry in to Hydraulic Fracturing last year.

The inquiry will deliver its final report to government in March.

Important caveats in Pangaea’s report include the lifting of the fracking ban in April and the creation of a Centre for Excellence to help drive increased capability.

Pangaea Resources executive director Tim Radburn addressed a group of 50 business and industry people in Katherine on Friday where he went through the report and detailed public benefit to the Territory.

“We’ve invested over $100 million in exploration programs to date and are excited about the prospects of the future,” he said.

“This should be viewed not only as Territory building, but a true nation building project with numerous public benefits, not least of which is supporting lower cost of living outcomes and higher standards of living for all Australians for many generations to come.”

Jemena managing director Paul Adams has endorsed the report. Jemena is building the 622km Northern Gas Pipeline.

“An onshore gas industry in the Territory would allow Jemena to progress plans to expand and extend the pipeline to the east coast,” he said.

“This project would quadruple the size of our NGP workforce to around 4000 across Northern Australia and mean more investment in local contractors and local communities for the longer term.”

Source: Ashley Manicaros, NT News

New Year, New AOG

Sonia Harvey — Wed, 10 Jan 2018 05:45:07 GMT

To register, or for more information, head to aogexpo.com.au

Petroleum Club NT is proud to be a supporting partner of AOG in 2018.

‘The oil and gas industry has gone through a rapid transformation in recent year, and as a result, so has AOG’, says AOG Event Director Bill Hare when asked about the changes the major industry event has seen over recent years.

‘Of course many elements haven’t changed. We are still the largest industry event in the oil and gas space, providing attendees with the best annual opportunity to network with their peers and see the latest technology and innovations up close, but now the show is so much more, truly representing where the industry is at right now’.

With now only 10 weeks remaining until Australasian Oil & Gas Exhibition & Conference (AOG) 2018 comes to Perth, anticipation is certainly building for this annual industry meeting place.

The long running AOG Conference is now a free to attend event with over 100 of the industry’s leading minds speaking in three Forum theatres on the exhibition floor over three days. This year the content is spearheaded by Woodside Energy, government backed National Energy Resources Australia (NERA), Deloitte, Shell, Chevron, the WA Government and over a dozen of the industry’s leading associations, with a focus on delivering cutting edge material during a period of dramatic evolution for the oil and gas sector.

New in 2018, AOG is collaborating with NERA to deliver two free-to-attend industry initiatives right on the Expo floor. The Nera Technology and Skills Hub will be a platform for 40 innovative businesses to demonstrate and exhibit their technologies in the fields of data and digitisation, automation and robotics, and artificial intelligence and machine learning and will run across the full three days of AOG 2018.

In addition, AOG will work with NERA on delivering the SME ConnectER program which will connect established SMEs that have innovative products or services and a genuine value proposition to champions from LNG operators and contractors.

‘New initiatives like this really show how invested the industry is in fostering innovative technologies and concepts. We are pleased to see that AOG participants will have the opportunity to be involved in these new programs from 2018’, said Mr Hare.

The Exhibition floor, always a key space for networking between industry leaders, will once again feature leading organisations, with nearly 200 exhibitors set to be a part of this year’s event. This year the show floor will feature Woodside Energy, BAE Systems, Dril-Quip, Honeywell and Powerflo, amongst many others.

Registration to attend AOG is now open, with the free registration including access to the exhibition and conference for the full three day event.

Pepper Inquiry finds fracking risks can be managed

Sonia Harvey — Wed, 13 Dec 2017 02:09:44 GMT

APPEA Media Release:

The draft final report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory has found that any risks associated with onshore gas development and fracking can be managed by effective regulation.

APPEA Director South Australia / Northern Territory Matthew Doman said it was critical the 12-month inquiry be completed to bring certainty to investors, local businesses, Traditional Owners, landholders and all Territorians.

“Importantly, the draft report confirms that shale gas development would have significant economic and employment benefits for the NT,” Mr Doman said.

“The report, released today, has also debunked many of the myths spread by activists opposed to onshore gas development.

“Justice Pepper’s draft report echoes the conclusion reached by numerous other scientific inquiries and reviews that any risks associated with hydraulic fracturing can be minimised or eliminated with proper regulation.

“The report includes 120 recommendations which will need to be considered in detail.

"Any regulatory reforms must be evidence based, workable and cost-effective.

“The industry supports robust, effective and efficient regulation, and will consider whether the report’s recommendations are appropriate to achieve this.

“In the meantime, it is crucial the report be finalised as quickly as possible so that the Territory Government can make decisions about the industry’s future. Uncertainty will remain until a new regulatory regime is confirmed.”

“Gas companies stand ready to invest billions of dollars in new projects in the Territory if the industry is allowed to resume exploration activity.

“There is no reason the Territory cannot manage the safe, sustainable development of its considerable natural gas resources.”

APPEA Media contact: Kieran Murphy – 0408 151 922 – kmurphy@appea.com.au

Santos knocks back another bid

Sonia Harvey — Fri, 17 Nov 2017 01:15:21 GMT

Source: EnergyNewsBulletin

SANTOS has confirmed that it quietly knocked back an $11 billion takeover bid at $4.55/share from private equity-backed Harbour Energy on August 14 believing it was too cheap and it wasn’t sure about the sources of the funds.

Santos swiftly moved to say it was not currently engaged in discussions with, and had not receive a current proposal from, Harbour Energy after Fairfax reported this morning that former Shell CEO hopeful Linda Cook had approached the Adelaide oiler's board with an invitation to support a takeover from her private equity-backed Harbour.

Santos said Harbour offered a confidential, non-binding conditional and indicative proposal to acquire all the Gladstone LNG operator's shares by way of a scheme of arrangement in August.

"The board rejected the approach on the basis that the indicative price [of $4.55/share] was inadequate and the sources of funds were uncertain," Santos said this morning.

"Santos receives a range of proposals from time to time and is at all times in compliance with its continuous disclosure obligations."

Read more here.

Woodside Petroleum to stand alone after Shell's $3.5b exit

Sonia Harvey — Wed, 15 Nov 2017 01:10:20 GMT

Source AFR

Woodside Petroleum chairman Michael Chaney has declared "the end of an era" as the oil and gas player emerged as a fully independent company for the first time in more than 30 years thanks to a $3.5 billion sellout by Royal Dutch Shell.

The outright sale of Shell's 13.28 per cent interest – which was upgraded in size only hours after an initial agreement after Monday's market close to sell 64 per cent of the holding – leaves Woodside without a stake that could block a full takeover.

The move was sudden but not unexpected, given the oil major – which had its own $10 billion bid for control of Woodside blocked under the Howard government in 2001 – had been gradually selling down since 2010. Shell had made it clear a full withdrawal was on the cards.

Mr Chaney described Shell's exit as "a natural evolution" given the development of Woodside's expertise since Shell first invested alongside its North West Shelf investment in the mid-1980s, and Shell's $US30 billion target for divestments of non-core assets in 2016-18.

But he acknowledged the path is more open now to potential takeover action.

"It's a possibility; whether it's a probability is another question," he said.

"Woodside stands on its own merits and I think for the board and management we just have to make sure that it's fairly valued in the market."

Investors said they didn't expect any impact on Woodside's strategy.

"Management has always steered Woodside as an independent company and we expect that to continue even after the sell-down," said Suhas Nayak at Allan Gray.

As reported in Street Talk, the shares were priced at $31.10 each, a 3.5 per cent discount to Monday's close in a block trade managed by UBS and Morgan Stanley. The timing took advantage of a circa 15 per cent surge in Woodside's stock price since early October on rising crude prices.

Chief executive Peter Coleman said the scaling up of the sale was positive on two fronts, showing strong support for the stock even at the "very tight discount", and eliminating uncertainty that would have lingered had Shell retained shares.

"There's been a perception of an overhang in the market since I joined Woodside," Mr Coleman said. "This takes the uncertainty and speculation away every time we report."

He said the share sale had been roughly evenly split across Australia, Asia and the UK investors, and was oversubscribed before the US market opened. The sale should spur further buying in coming weeks as Woodside's weighting in indices would increase.

Ichthys LNG Project combined cycle power plant fires-up

Sonia Harvey — Fri, 10 Nov 2017 00:43:28 GMT

Perth, Australia: The INPEX–operated Ichthys LNG Project is a step closer to becoming the world’s first liquefied natural gas (LNG) plant to use combined cycle technology, having successfully initiated the start-up of its gas turbine generators at its onshore power plant near Darwin, Northern Territory, Australia.

The milestone is a significant step towards power generation at the Project’s onshore combined cycle power plant (CCPP). Ichthys Project Managing Director, Mr Louis Bon paid tribute to the ongoing focus of the team working on the delivery of the power plant.

“Initiating the safe start-up of the gas turbine generators (GTG) illustrates the strong commitment of the onshore team to overcome challenges and achieve our targets,” Mr Bon announced.

“The combined cycle power plant uses gas and steam turbines together to produce up to 50 per cent more electricity from the same amount of fuel compared with a traditional simple-cycle plant,” he advised.

The waste heat from the gas turbines will be used to create steam for the nearby steam turbine system, which generates extra power. Power and Water Corporation in the Northern Territory provided the initial gas to fuel the GTG start-up process.

Ultimately powered by natural gas from the Ichthys Field, the CCPP will use a mix of five gas and three steam turbine generators to supply all the electricity requirements for onshore processing of LNG.

The power plant has capacity for up to 490 megawatts of electricity, which allows LNG processing trains to cool and liquefy natural gas.

Read the full media release here.

APPEA - Inquiry delay threatens NT gas jobs

Sonia Harvey — Thu, 09 Nov 2017 01:35:40 GMT

The Northern Territory is unlikely to see any significant investment in onshore gas projects next year following a decision by the independent inquiry into hydraulic fracturing to delay its final report by three months.

APPEA NT Director Matthew Doman said the gas industry was surprised and disappointed by yesterday’s announcement that the Pepper Inquiry’s final report would not be completed until March.

“What was supposed to be a 12-month inquiry is now entering its second year,” Mr Doman said.

“The final report was promised by the end of this year. We now won’t see it until at least March next year. Even if the fracking moratorium is lifted after that, it is very hard to see any significant investment occurring in 2018.

“That means another year of lost opportunity for traditional owners and local businesses who stand to benefit as soon as this unnecessary moratorium ends.

“These further delays are damaging to the NT’s economic interests.

“It must be remembered that we have already had one independent inquiry into fracking in the NT which took nine months to conclude that any risks could be safely managed through robust regulation.

“Numerous other inquiries here in Australia and overseas have reached the same conclusion – fracking is safe when properly regulated.”

Media Contact:

Kieran Murphy
Mobile: 0408 151 922
Email: kmurphy@appea.com.au

Registrations are now open for AOG 2018

Sonia Harvey — Wed, 08 Nov 2017 01:56:53 GMT

Diversified Communications, the organiser of the 2018 Australasian Oil & Gas Exhibition & Conference (AOG 2018), is pleased to announce that registrations for Australia’s largest oil and gas industry event are now open.

With strong support from government and industry groups from around the globe and Principal Sponsors Woodside Energy, National Energy Resources Australia (NERA), the City of Perth and the Western Australian Department of Jobs, Tourism, Science and Innovation, Diversified is anticipating another world class event.

The three-day AOG 2018 gathering will be staged for the 37th time from the 14th to the 16th of March, almost a month later than normal, to provide for a smoother fit within the international oil and gas industry event calendar.

AOG 2018 will again feature a series of “free-to-attend” Industry Forums over the three days covering the topics of Collaboration, Subsea, and Knowledge, which will be staged on the Exhibition floor.

The 2018 event will also feature a full program of networking events that will fit the needs of all attendees.

AOG 2018 Event Director, Bill Hare, said with the Exhibition and Conference just over five months away, there was a strong “buzz” of anticipation building.

“We again expect to have the participation of large government and industry groups from the leading oil and gas producing countries participating in the exhibition, while the interest in providing content for our Industry Forums has been tremendous,” Mr Hare said.

For more information please go to: https://aogexpo.com.au/

ACIL Allen Report: Economic Impact of Potential Shale Gas Development in NT

Sonia Harvey — Fri, 03 Nov 2017 02:13:54 GMT

The Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (Inquiry) has released ACIL Allen Consulting Pty Ltd’s (ACIL Allen) independent economic impact assessment of a potential onshore unconventional shale gas industry in the Northern Territory (NT), The Economic Impacts of a Potential Shale Gas Development in the Northern Territory (report).

The report focuses on the potential direct and indirect economic benefits, impacts and risks of onshore shale gas development in the NT under the current regulatory regime, if the Northern Territory Government were to lift the moratorium.

The report consists of five scenarios over a 25-year time frame, namely:

1. Baseline: the moratorium remains and nothing changes.
2. Shale calm: the moratorium is lifted, but only exploration and appraisal activity occur for a period of three years and development is found to be not commercially viable. This requires two well pads and 16 wells to be built in the 2019 financial year with market testing to take place in 2020.
3.Shale breeze: the moratorium is lifted, exploration and appraisal activity occurs, and a small scale development 100 Terajoules per day (TJ/day) takes place resulting in 13 pads and 103 wells.
4. Shale wind: the moratorium is lifted and a moderate scale (400TJ/day) development occurs, with 34 pads and 267 wells.
5. Shale Gale: the moratorium is lifted and a larger scale (1000TJ/day) development occurs, with 84 pads and 670 wells.

To download the full report go to: NT Government Fracking Inquiry website

New report confirms NT shale gas benefits

Sonia Harvey — Wed, 01 Nov 2017 02:09:24 GMT

Shale gas development in the Northern Territory would deliver new jobs, local contracts and increased government revenue, an independent economic analysis has confirmed.

The report by ACIL Allen Consulting Services was commissioned by the Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory.

The analysis finds that shale gas development could create more than 500 new jobs sustained over 25 years, boost the NT economy by $5.8 billion and generate up to $3.7 billion in taxes and royalties for the Territory over the same period.

APPEA NT Director Matthew Doman the report was further evidence that the Territory stood to benefit significantly by lifting its moratorium on shale gas.

“The ACIL Allen analysis is a very conservative model which is at odds with the demonstrated experience of the gas industry in other states and uses smaller development scenarios than the industry believes are likely,” Mr Doman said.

“For example, initial developments envisaged by just three companies could exceed all of the gas production modelled in this report.

“As well, earlier economic modelling has shown the economic benefits would be even greater for the NT if shale gas was developed for export as well as domestic use.

“Regardless, the ACIL Allen report shows there will be more jobs, more revenues and a stronger economy if the Territory Government lifted its moratorium on hydraulic fracturing.”

Mr Doman said the ACIL Allen report also highlighted the gas industry’s very small environmental footprint with its largest development scenario suggesting land use covering less than 500 square kilometers, or less than 0.03 per cent of the Territory land mass.

“Evidence to this and numerous other inquiries and decades of practical experience clearly shows that hydraulic fracturing is safe when properly regulated,” Mr Doman said.

“Until exploration is allowed, we cannot be certain of the size and scale of the development that is most likely, and the benefits that will flow to Territorians.

“It’s vital that that Justice Pepper concludes her inquiry and that the Territory Government lift its moratorium.”

Media contact: Kieran Murphy – 0408 151 922 – kmurphy@appea.com.au

Ichthys LNG Project milestone - new LNG carrier completed and named

Sonia Harvey — Thu, 26 Oct 2017 04:33:19 GMT

INPEX Tokyo has recently celebrated the completion of construction of the “Oceanic Breeze”. The “Oceanic Breeze” will transport LNG from the Ichthys LNG onshore processing facilities in Darwin to INPEX’s terminal in Naoetsu, Japan.

This is a really great milestone and highlights yet another component of this huge Project.

Download article here.

Media contact: Rebecca Cass

External Affairs Manager NT

NGP's solar edge

Sonia Harvey — Wed, 25 Oct 2017 02:38:36 GMT

Source: Energynewsbulletin.net

TAG subsidiary MPower has delivered two of ten remote renewable energy systems for Jemena’s Northern Gas Pipeline, the systems will work autonomously to support operations.

So far two of ten off-grid DC power systems have been arrived with the last planned for an early 2018 delivery.

The systems feature PV arrays, battery energy storage and control systems which are designed to provide protection along the 632km pipeline.

The remote location and the requirement for reliable and continuous power when there is no network access is a problem MPower says it experienced in solving.

Tag CEO Nathan Wise said that his company was known for its ability in providing high-reliability power solutions for critical applications.

"We have drawn on our vast experience in remote renewable power systems and integrated battery energy storage to design a sophisticated solution that meets the demanding requirements of the Northern Gas Pipeline," he said.

Read more here.

Jemena NGP to be extended

Sonia Harvey — Thu, 19 Oct 2017 06:57:48 GMT

Source: Ashley Manicaros NT News

THE constructors of the Northern Gas Pipeline have signed a deal which will see the 622km project extended through Central Queensland.

The NGP will transport Northern Territory gas from Tennant Creek to Mt Isa in Queenslaand. The $800 million project is underway.

Jemena announced on Tuesday it will now fast track plans to connect to the east-coast gas market after signing a binding agreement with Galilee Energy Limited to deliver a large new source of gas from the Glenaras Gas project in the Galilee Basin.

Jemena’s executive general manager of corporate development, Antoon Boey, said large new sources of gas need to be produced and delivered to the market as quickly as possible.

However, the earliest it could reach market is 2022.

“By undertaking the early planning works, both Jemena and Galilee Energy will be ready to proceed to front end engineering and design on both pipeline and field development in 2019 with the objective of first gas to market in 2022,” he said. ”

Mr Boey said the announcement marks another key step in Jemena’s plans to expand and extend its NGP.

Galilee Energy’s managing director, Peter Lansom said his company had one of the largest “uncontracted contingent gas resources” on the east coast.

“This partnership is all about working together to get this critical gas supply option to the domestic market as quickly as possible,” he said.

The NGP is expected to create around 900 jobs, with first gas through the pipeline expected to flow in late 2018.

Excess Power and Water gas from the Blacktip field will be the first product through with forecasts up to 100Tj a day will be shipped.

A 10-year deal has been signed with Incitec Pivot to take the first gas.

Read more here

EnerMech Awarded Hose Supply and Services Contract For Shell Prelude Australia Project

Sonia Harvey — Tue, 17 Oct 2017 06:54:33 GMT

Global engineering and maintenance services provider, EnerMech, has been awarded a five-year contract for hose and hose fittings supply and services for Shell’s Prelude FLNG Facility in Western Australia.

The Prelude FLNG contract will be administered from EnerMech’s Henderson base in Perth while engineering and service support will be provided from regional facilities across Australia, including Darwin in the Northern Territory.

EnerMech’s Regional Director Allan Hart said: “We are pleased to announce the appointment of EnerMech as the Hose Integrity Management and Supply contractor on the prestigious Prelude FLNG Facility.

“This latest award strengthens EnerMech’s reputation as a leading maintenance service provider with a willingness to adapt to the changing oil and gas environment.”

The Prelude FLNG facility recently arrived at its location 475km north east of Broome where the hook-up and commissioning phase of the project is underway.

http://www.enermech.com/news

Civmec secures NGP work

Sonia Harvey — Thu, 28 Sep 2017 07:00:32 GMT

Civmec Limited been awarded several contracts by Jemena for work on its Northern Gas Pipeline (NGP) near Tennant Creek in the Northern Territory.

The work includes camp setup, site civil, structural steel fabrication and the Structural, Mechanical, Piping, Electrical and Instrumentation (SMPEI) installation works at the Phillip Creek Compressor Station.

“This is a significant and strategic award for us and combined with the scope growth at the Ichthys Project in Darwin, it will see an enlargement of our on-site capabilities within our oil and gas division and an expansion of our brand in the Northern Territory,” said Civmec CEO Patrick Tallon.

“We are delighted to secure Jemena as a new client and are very focused on ensuring that together we deliver these contracts safely and effectively.”

With site civil works commenced and the SMPEI work scheduled to commence in late September 2017, the project will require more than 160 personnel to be employed at its peak, with completion scheduled for August 2018.

Including this project, the Civmec’s order book stands at approximately $640 million.

Source: The Australian Pipeliner

Ichthys LNG Project’s giant FPSO safely moored in Ichthys Field

Sonia Harvey — Fri, 25 Aug 2017 06:15:28 GMT

The INPEX-operated Ichthys LNG Project’s Floating production, storage and offloading facility (FPSO) was safely moored today in the Ichthys Field, 220 kilometres off the north coast of Western Australia. The massive 336-metre long FPSO, named Ichthys Venturer, is longer than three soccer fields and is an engineering masterpiece, designed for 40 years of operations without dry dock. “The safe and efficient mooring of the Ichthys Venturer in the 250-metre deep waters of the Ichthys Field heralds another successful milestone for the INPEXoperated Ichthys LNG Project,” Mr Louis Bon, Managing Director Ichthys Project stated. “Completing the complex operation of connecting 21 pre-installed mooring chains, weighing more than 15,000 tonnes, from the seabed to the FPSO is testament to the well-coordinated work of our personnel, including contractors and subcontractors from around the globe,” Mr Bon said.

Read the full media release here.

Santos warns on lawyers

Sonia Harvey — Mon, 24 Jul 2017 06:20:48 GMT

Source: Energynewsbulletin.net

SANTOS wants a Queensland GasFields Commission-style body set up in the Northern Territory and legal fees capped so landholders don’t have to cop what the Sunshine State’s commission calls lawyers “bullying” landholders.

Santos manager public affairs offshore and NT Tom Baddeley told the Territory's fraccing inquiry panel at a hearing in Darwin yesterday that his company recognised the strong relationship between pastoralists and the land they lease, which in some cases stretches back generations.

However, the company does not believe a right of veto - which the NT Cattleman's Association wants - is appropriate.

The NTCA argues that a veto would fix the apparent "power imbalance" between gas companies and pastoralists.

One stakeholder had told the inquiry that the "power imbalance" was a result of pastoralists' "limited experience in undertaking such negotiations compared to explorers, who may have negotiated hundreds of such agreements; and the asymmetry of information regarding the potential impact of the exploration activity".

That apparent imbalance of power is also there, NTCA argues, because in most cases, rural land holders are legally required to allow explorers to access their land.

Other stakeholders raised concerns about pastoralists' limited access to independent and affordable legal advice, limited political influence, limited technical knowledge and limited time to negotiate agreements.

There is no right of veto in Queensland; instead there is a legislative requirement to have an agreement and fair compensation in place before any on-property activity.

Santos has secured more than 2000 agreements to date in Queensland.

The state also has an established a land access code, which the agriculture and resources industries both support

Read more here

Monadelphous Contracts Update

Sonia Harvey — Wed, 19 Jul 2017 06:45:13 GMT

Engineering company Monadelphous Group Limited (ASX:MND) (“Monadelphous” or “the Company”) today announced it has been awarded a number of new work packages with a combined value of approximately $55 million.

The Company has received a Notice of Award to provide mechanical decommissioning, demolition, civil, structural, mechanical and piping works associated with Shaft 1 and Shaft 2 Surface Infrastructure for the Oyu Tolgoi Underground Project – operated by Oyu Tolgoi LLC mine operations located in the South Gobi region of Mongolia. The works are scheduled to be completed in early 2019.

In addition, Monadelphous has been awarded a contract for piping modification and fabrication for Technip Oceania Pty Ltd (TechnipFMC) on the hook-up and commissioning phase of Shell Australia’s Prelude Floating Liquefied Natural Gas project in the Browse Basin, approximately 475 kilometres north-northeast of Broome, in Western Australia.

The Company's renewable energy business, Zenviron, has been awarded a contract, in consortium with Vestas – Australian Wind Technology Pty Ltd, to provide engineering, procurement, construction and commissioning of the 54 MW Salt Creek Wind Farm for Tilt Renewables. The project, located in western Victoria, is expected to be completed in July 2018.

Read full media release here.

Apply now for the 2017 Chief Minister's Export and Industry Awards

Sonia Harvey — Tue, 11 Jul 2017 00:19:34 GMT

Applications are open for the 2017 Chief Minister's Northern Territory Export and Industry Awards.

The Awards seek out top exporters and leaders in industry in 18 different categories. The Awards also focus on local industry through four domestic award categories in Manufacturing, Resource Supply and Service, Industry Innovation and the Indigenous Exporter Award, as well as two international student award categories.

Applications close on Friday 4 August. Winners will be announced at a gala dinner presentation onThursday 21 September.

Export Categories

If you are an exporter of a product or service, there are 12 categories that may be suitable to your business:

· Agribusiness

· Digital Technologies

· Education and Training

· Minerals, Energy and Related Services

· Regional Exporter

· Small Business

· More

Local (NT) Award Categories

The 'Local Awards' annually seek out Territory companies and honours them for their excellence and achievement in 4 categories:

· Industry Innovation

· Local Content - NEW

· Manufacturing Industry

· Resource Supply and Service

· More

Application writing assistance also available.

For more information on these Awards and how to apply, visit www.ibc.org.au

Prime industrial waterfront land available now

Sonia Harvey — Fri, 07 Jul 2017 02:10:59 GMT

37 Muramats Road, East Arm is a 75,000 square metres waterfront industrial property. Originally designed to be in four stages the owner has decided to construct in two stages.

The initial stage (A and B) includes a gross area of 44,900 square metres, it includes 150 metres of road on the northern boundary, making the site area nett of the road 41,450 square metres. This block varies in depth from 273 metres up to 326 metres, the waterfront boundary is 150 metres and includes a massive barge loading dock, this dock is 130 metres deep and 75 metres across, this dock dramatically increases the sites water frontage.

The second stage (C and D) is an additional 30,100 square metres including 2,920 square metres of road. This stage includes 120 metres of water frontage and the block varies between 231 metres and 273 metres. Both these stages combined have a an area nett of the road 68,630 square metres, 270 metres of water frontage and a depth of between 231 metres and 326 metres.

View full prospectus here

North Commercial

Lee Doyle

M: 0403 348 243 I T: (08) 8981 1088 I F: (08) 8941 1399 E: lee@northcommercial.com.au W: www.northcommercial.com.au

Pressure Dynamics take out inaugural PCNT Golf Day Cup

Sonia Harvey — Mon, 03 Jul 2017 02:46:09 GMT

Congratulations to the team from Pressure Dynamics taking out the win on the day (best net) with the team from Mecure having best gross score. Full results list below.

There were no luck winners on the MMC Hole in One this year but I hope you look forward to 2018 for the opportunity to have another go. Other prize winners were:

Longest Drive sponsored by Freo- Ray Sommerville - MMC

Nearest to the Pin sponsored by Drug Safe - Dan Marshall - Total Steel

NAGA - Team Duratec

To see photos from the event please click here and share with your guests: https://flic.kr/s/aHsm3CJbRE

McConnel Dowell back on NGP

Sonia Harvey — Sat, 01 Jul 2017 02:36:45 GMT

McConnell Dowell has been awarded a construction contract by Jemena for the Northern Gas Pipeline (NGP) Project.

The NGP is a 622 km buried gas pipeline between Tennant Creek and Mount Isa, and upon completion, will connect Northern Territory gas fields with the east-coast gas market.

McConnell Dowell’s scope of work involves the engineering, construction and commissioning of a 481 km section of the pipeline, commencing in the Northern Territory.

The award comes after an extensive early contractor involvement process between Jemena and McConnell Dowell, during which time Jemena secured the necessary approvals and land access to allow the project to move forward.

With this award secured, McConnell Dowell will expeditiously commence site activities over the coming weeks with the first gas expected to run through the pipeline in late 2018.

McConnell Dowell CEO Scott Cummins said the company has industry leading experience in the delivery of cross country pipeline projects.

“This project will build on the successful relationship between McConnell Dowell and Jemena and is a testament of the customer’s confidence in our experience and ability to construct this critical infrastructure link,” said Mr Cummins.

View the full article from The Australian Pipeliner here.

APGA Annual Dinner featuring Jemena's Project Director - Jonathan Spink

Sonia Harvey — Fri, 30 Jun 2017 02:19:31 GMT

The complex road to construction of the Northern Gas Pipeline: Linear Infrastructure, Divergent Process.

PCNT members are welcome to register for this event at APGA members rates. Please contact events@apga.org.au or call Charmaine on 02 6273 0577

Visit the event webpage here.

The Northern Gas Pipeline is under construction in the Northern Territory. Jemena was selected by the Northern Territory Government to build and operate the Northern Gas Pipeline in late 2015. The 622km pipeline will connect Northern Territory gas fields with the east coast gas market at Mount Isa in Queensland and will cost $800 million to construct.
At the Darwin Dinner, Jemena NGP Project Director Jonathan Spink will talk about the trials and tribulations of getting to this crucial delivery milestone of construction completion, and what’s on the horizon to get the job finished.

Shell's Prelude FLNG Facility begins journey to Australia

Sonia Harvey — Thu, 29 Jun 2017 02:16:52 GMT

Shell Australia’s Prelude floating liquefied natural gas (FLNG) facility left the Samsung Heavy Industries shipyard in Geoje, South Korea this morning, marking a significant milestone for the project. The facility, constructed by Technip Samsung Consortium, is being towed to North West Australia, where the next phase of the project will commence.

On arrival at the Prelude offshore gas field, 475 kilometres north-north east of Broome, Western Australia, pre-positioned mooring chains will be lifted from the seabed and secured to the facility. Once secure, the complex hook-up and commissioning process will begin.

The safe and reliable start-up of Prelude’s operations will be the project team’s focus through the next phase.

Follow this link to see footage of Prelude being towed out of the shipyard:

https://youtu.be/tFCY1MyDIDw

Maicon Engineering announce Technip Oceania contract for Shell Prelude

Sonia Harvey — Wed, 28 Jun 2017 02:28:00 GMT

Maicon Engineering is pleased to announce its award of the Onshore and Offshore Spool Fabrication contract by Technip Oceania for the Shell Prelude Floating Liquefied Natural Gas (FLNG) project.

The scope of work involves:

▪ Fabrication of spools from exotic materials, including duplex and titanium

▪ Fabrication of general items for connection of the Shell Prelude FLNG platform to the sub-sea risers on the sea floor.

The works will be carried out in accordance with onshore fabrication and offshore installation schedule requirements. This contract will be managed and delivered out of our Darwin facility and builds on our track record as a quality and reliable contractor to the resource sector.

View the full media release here.

Gas industry primed to fuel NT’s economic future

Sonia Harvey — Wed, 21 Jun 2017 02:38:24 GMT

The oil and gas industry welcomed the release today of the Northern Territory Economic Development Framework by Chief Minister Michael Gunner.

The Framework recognises the vital role that natural gas will play as one of the Northern Territory’s major growth sectors to maintain and grow living standards across the region.

APPEA’s Northern Territory Director, Matthew Doman said: “With almost 30 trillion cubic feet of offshore gas reserves, and potentially far greater resources onshore, the Northern Territory economy will benefit from the decades long development and production of natural gas for both domestic and export markets.”

The Framework highlights that the NT’s onshore basins are estimated to hold around 200 trillion feet of natural gas, enough to power Australia for 200 years.

“The oil and gas industry recognises that onshore gas development in the Territory must be done in an environmentally and socially responsible manner,” said Mr Doman.

View the full APPEA media release here.

Site Skills Training Darwin Upsizes

Sonia Harvey — Thu, 01 Jun 2017 02:41:23 GMT

Site Skills Training has moved its Northern Territory operations to 1 Campion Rd in East Arm.

The move increases Site Skills Training’s Territory operations from a 2,500sqm facility to an 8,000sqm facility.

Since commencing operations in the Northern Territory in 2012, Site Skills Training has delivered high risk licencing, health and safety and industry programs to over 15,000 Territorians and on behalf of over 400 companies operating in the Northern Territory.

The size increase and history of training represents Site Skills Training commitment to local jobs and increasing the training options available to Territorians.

Site have identified the increase as being part of a broader strategy to introduce programs and capability currently being run by Site and others elsewhere in Australia and Internationally, particularly to support development of local jobs for projects in the Oil and Gas, Mining, Construction, Energy and related industries.

View the full SITE media release here

SITE NT Snapshot

Jamie Wills

General Manager Commercial and Corporate Affairs

M. +61 409 490 554 T. +61 7 3114 5188

INPEX-operated Ichthys LNG Project’s Central Processing Facility has arrived in Australian waters

Sonia Harvey — Mon, 29 May 2017 02:32:26 GMT

World’s largest semi-submersible platform arrives in Australian waters The INPEX-led Ichthys LNG Project is celebrating the safe arrival of its central processing facility (CPF), the world’s largest semi-submersible platform, in the Australian waters of the Browse Basin today.

The massive CPF (named the Ichthys Explorer) weighing 120,000 tonnes and with topsides measuring 130 metres by 120 metres, reached her final destination, 220 kilometres off the north coast of Western Australia, where she will be located for 40 years.

“The safe completion of the 5,600 kilometre tow of the Ichthys Explorer from South Korea to the Ichthys Field, located 450 kilometres north of Broome, is another significant milestone for the Ichthys LNG Project,” Mr Louis Bon, Managing Director, Ichthys LNG Project stated.

“The successful 34 day tow is a tribute to our world-class processes and the commitment of our personnel from around the globe” Mr Bon said.

View the full media release here.

CPF Fact sheet

NT Ports and Marine take out the Bluewater Classic

Sonia Harvey — Wed, 10 May 2017 01:48:22 GMT

Last Sunday 80 Petroleum Club NT members and guests hit the water for the 2017 Bluewater Classic. Darwin turned on another perfect day as dry season has finally kicked in and 6 charter boats departed Cullen Bay at 6am to get the competition underway.

Individual winners:

!st: John Hogins (Northern Rise) - 125cm Jew Fish

2nd: Sally Dunn (INPEX) - 116cm Jew Fish

Overall winning boat: NT Ports and Marine, captained by Chris Litowchak

The presentation lunch was held at Yots Greek Taverna with plenty of prizes and encouragement awards.

The $8,000 Tiwi Islands Adventure package was won by Tracy Ryan after sponsor James Stokes conceded the prize by unluckily drawing his own ticket.

PowerWater outsmarted in $50m gas deal

Sonia Harvey — Wed, 10 May 2017 01:00:50 GMT

Article by Ashley Manicaros

TERRITORIANS have been left with $50 million of gas they will not use after the Power and Water Corporation was outsmarted in a supply deal.

Central Petroleum has won a deal to supply 9.85PJ of gas over five years to the Northern Territory Pine Creek Power Station operated by Energy Development.

Under the supply agreement, Central Petroleum has the right to supply gas from its central Australian fields of Mereenie, Dingo or Palm Valley, in a fixed-price gas contract which may increase subject to CPI.

In a further twist, Central Petroleum on Tuesday announced a gas transportation deal to move the gas along the Amadeus pipeline after negotiating directly with APA Group, owners of the pipeline.

The total deal, estimated at $50 million, has caught many gas analysts and Power and Water by surprise given the volume of excess gas available to the government-owned entity from Blacktip and its effective monopoly of gas transportation through both the Amadeus and Bonaparte pipelines.

Read the full article here. Article by Ashley Manicaros, NT News

Monadelphous wins INPEX Offshore Maintenance Services Contract

Sonia Harvey — Wed, 10 May 2017 00:54:38 GMT

Monadelphous Group Limited today announced it has been awarded a major, long-term offshore maintenance services contract for INPEX Operations Australia associated with the Ichthys LNG Project.

The contract is for an initial period of six years with a further two 2-year extension option and is located in the Browse Basin, approximately 450 kilometres from Broome, Western Australia. Monadelphous has been engaged to deliver operational, campaign and shutdown maintenance services and brownfield projects implementation associated with the Ichthys Central Processing Facility ‘Ichthys Explorer’ (CPF) and Floating Production Storage and Offloading facility ‘Ichthys Venturer’ (FPSO).

The Ichthys LNG Project is ranked among the most significant oil and gas projects in the world, involving some of the largest offshore facilities in the industry, including the ‘Ichthys Explorer’, the world’s largest semi-submersible central processing facility. Commenting on the new contract, Monadelphous Managing Director Rob Velletri said “We are delighted to be awarded such a significant maintenance contract by INPEX Operations Australia for the world-class Ichthys LNG Project. The contract continues to strengthen our position as a major service provider of offshore maintenance services.” “We look forward to further strengthening our relationship with INPEX Operations Australia and working together to create sustainable economic and social development opportunities for local people, businesses and communities.”

Origin Energy doubles stake in Beetaloo shale gas field

Sonia Harvey — Fri, 05 May 2017 01:06:05 GMT

Origin Energy Limited (Origin) today announced it had increased to 70 per cent its share in the Beetaloo Joint Venture* after acquiring Sasol Petroleum Australia Limited’s (Sasol) 35 per cent share.

Origin CEO, Frank Calabria said, “Having recently announced the discovery of a material shale gas resource in the Beetaloo Basin, Origin has seized the opportunity to increase its interest in the Beetaloo Joint Venture by acquiring Sasol’s 35 per cent share.

“Origin would like to recognise Sasol’s contribution to the Beetaloo Joint Venture to date, as it departs the Joint Venture to focus its capital investment on its African and North American footprint.

“The Beetaloo Basin is the Northern Territory’s most prospective onshore basin for shale gas and our test results estimate the joint venture’s contingent resource at a substantial 6.6 TCF of natural gas.

“Along with joint venture partner Falcon Oil & Gas Australia, we look forward to progressing our understanding of the play and maturing the contingent resources to reserves over time, subject to the outcome of the Northern Territory’s inquiry into hydraulic fracturing.

“Recent events have demonstrated how crucial it is for Australia to continue to develop its abundant natural gas resources, in order to provide access to sufficient, affordable gas supply for businesses and homes across the nation.

“As one of the largest natural gas producers on the east coast, Origin will continue to look at opportunities to invest in the safe and responsible development of natural gas resources, such as those in the Beetaloo Basin. Gas will play an important role in the transition to a secure, affordable and cleaner supply of energy for Australia,” Mr Calabria said.

The transaction is subject to the satisfaction of certain conditions. It is not expected to impact on Origin’s short term focus on debt reduction as there are no immediate capital requirements in the Beetaloo.

Located about 500 kilometres south-east of Darwin, the three Beetaloo Joint Venture permits cover an area of more than 18,500 km2 within the Beetaloo Basin.

* BEETALOO JOINT VENTURE

Origin Energy Limited (Operator) **: 70%

Falcon Oil & Gas Australia Limited: 30%

** Via a wholly owned subsidiary

www.originenergy.com.au

EnerMech wins Ichthys LNG plant commissioning job

Sonia Harvey — Tue, 02 May 2017 01:30:53 GMT

JKC Australia LNG, the EPC contractor for the Inpex-led Ichthys LNG project’s onshore facilities, awarded the first commissioning subcontract to EnerMech.

The scope of work will include nitrogen/helium leak testing of the piping systems, cooling water system passivation and degreasing of the acid gas removal units.

EnerMech was selected as the preferred tenderer for the multi-million dollar specialist commissioning activities package.

Timeline shift for Ichthys Project

Sonia Harvey — Mon, 01 May 2017 01:33:10 GMT

The Ichthys project was due to start LNG exports in the third quarter of 2017, but cited delays in the installation of offshore production facilities for the revised schedule.

Production of LNG, condensate and LPG are now expected to begin by the end of March 2018 according to INPEX.

SEAOOC Speaker Line Up

Sonia Harvey — Wed, 26 Apr 2017 01:12:58 GMT

NT Resources week will be held in Darwin this year from 16-17 August.

The current line up of speaker for the oil and gas stream of SEAOOC looks strong bringing some influential business leaders to the Territory. Check out the speaker list here: www.ntresourcesweek.com.au/seaaoc/speakers/

PCNT is proud to be a supporting sponsor of the 2017 SEAOOC Conference.

NT backs study into multi-billion dollar Darwin LNG expansion

Sonia Harvey — Wed, 19 Apr 2017 01:25:09 GMT

NT backs study into multi-billion dollar Darwin LNG expansion
Article by Angela Macdonald-Smith

The prospect of a multi-billion dollar expansion of ConocoPhillips' Darwin LNG project has leapt back onto the table just as resentment builds on the east coast over LNG exports from Queensland driving up local gas prices.

In a surprise announcement on Wednesday, Northern Territory's Labor government said it would put $250,000 towards a study into the feasibility of adding a second production unit at the 3.6 million tonnes a year plant.

The $625,000 study is also backed by a range of companies holding offshore gas fields, including Santos, Origin Energy, Shell and South Korea's SK Corporation, that could in theory provide gas for the second unit.

The expansion would create "thousands of jobs" in the NT, said Chief Minister Michael Gunner, noting that the initial project to build the first LNG "train" at Wickham Point created about 2500 jobs during construction.

MMA Brewster’s Darwin Naming Ceremony

Sonia Harvey — Fri, 07 Apr 2017 01:38:07 GMT

MMA Brewster’s Darwin Naming Ceremony

A custom-built platform supply vessel constructed by MMA Offshore will be a regular visitor to Darwin Port over the next 10 years, as one of the primary vessels providing drilling, commissioning and operational support to INPEX’s offshore facilities in the Ichthys Field. The vessel was officially named “MMA Brewster” at a ceremony on 6 April 2017.

MMA Managing Director Jeff Weber said the MMA Brewster was a state-of-the art platform supply vessel, featuring advanced engineering and design. It had significant specialist capabilities that suited the unique demands of the Ichthys LNG Project offshore facilities. “The MMA Brewster joins our fleet of more than 40 vessels in Australian and international waters, and will operate from Darwin Port to support and supply INPEX’s operations in the Ichthys field, he said.

Read the full press release here.

PTTEP secures Tom Prosser Jack Up Rig

Sonia Harvey — Mon, 27 Mar 2017 01:58:32 GMT

Offshore drilling contractor Noble Corporation has been awarded a contract by PTTEP for redeployment of the rig Tom Prosser in Australia for a single new production well at Montara.

The 2014-built jack up rig, which had been warm stacked in the United Arab Emirates since last October on expiry of its drilling contract with Quadrant Energy, will be deployed for two months from early September to late October 2017 at a day rate of US$130,000.

It will be involved in work for PTTEP in the Bonaparte Basin in which the Montara oil project is located as well as the undeveloped Cash-Maple complex in AC/P54. The field are located 700km west of Darwin and 200km southwest of the Bayun Undan field. The Noble Tom Prosser was designed to drill to depths of 10,000m in water depths of 121m.

Noble also revealed that a customer has exercised one 30-day priced option for the 2013-built jack-up rig Noble Regina Allen, which is providing accommodation services for an unnamed client in the UK.

Industry Briefing - Supply Chain Facilitation Programme

Sonia Harvey — Tue, 07 Mar 2017 01:45:40 GMT

The Supply Chain Facilitation Programme is an engagement between AusIndustry, INPEX and Jemena and local supply chain businesses. AusIndustry will assist eligible businesses to identify their greatest supply chain opportunities, and work through any challenges they may face.

Key skills the programme aims to offer, including:

How to get a competitive advantage when tendering as suppliers to Prime Contractors
Insight into the Prime Contractor procurement challenges
Opportunities to invest in areas of your business that addresses the concern and gives you greater commercial advantages
Be seen as actively engaging in meeting supplier challenges
Understand general areas that may knock you out from standard tender processes.

Katherine Regional Mining and Exploration Forum - Discounted regsitration

Sonia Harvey — Wed, 08 Feb 2017 04:28:11 GMT

Katherine Regional Mining and Exploration Forum

As an endorser of the Katherine Regional Mining & Exploration Forum, Petroleum Club NT have secured a 15% discount for all our members to attend. If you are an NT business, this discount will also apply to the Special NT Business Rate.

Simply log in to the members portal and visit the member benefits page or contact the office for more information on accessing the discount.

The Katherine Conference is a collegial event that brings together key industry leaders with major and local businesses to further develop collaboration strategies and partnerships. The event provides a key platform to promote Katherine’s suite of product and capabilities servicing the mining, exploration and oil & gas industries, as well as the construction and agriculture sectors.

The event has become the annual economic development forum for the region businesses and major project leaders with discussions around current and future developments, employment & training, business capabilities, and issues and challenges impacting the region.

Discounted OAKS accommodation in Darwin for 2017

Sonia Harvey — Mon, 30 Jan 2017 04:24:24 GMT

ACCOMMODATION:

Oaks Hotels & Resorts in conjunction with Petroleum Club of NT, are offering a special discount on accommodation for our PCNT network and guests at Oaks Darwin.

To book visit oakshotelsresorts.com and enter ‘Petroleum17’ in the 'Corporate/Group/PromoCode’ section of the Reservations panel. This offer will give you 12% of the best available rate throughout 2017.

RESTAURANT & DINING:

Oaks Darwin are happy to offer PCNT members 25% off all food and beverage purchases when dining in Oaks Restaurant. To access you discount simply inform the friendly staff that you are a PCNT member upon arrival and present your member badge.

NERA $20,000 Innovation Voucher Program for SME's

Sonia Harvey — Wed, 25 Jan 2017 04:21:07 GMT

NERA invites Small to Medium Enterprises (SMEs) to apply for a $20,000 Innovation Voucher. The funding must be used to deliver an innovative solution to a technical challenge which has limited their customer's ability to optimise their business operations.

All applications to be submitted to projects@nera.org.au by 3^rd March 2017.

Guidelines and application forms can be found on the NERA Innovation Voucher Program webpage.

About NERA:

National Energy Resources Australia (NERA) has been established to maximise the value to the Australian economyby having an energy resources industry that is globally competitive, sustainable, innovative and diverse.

Through a national focus, NERA's role is to grow collaboration and innovation to assist the energy resources industry manage cost structures and productivity, direct research to industry needs, deliver the future work skills required and promote fit for purpose regulation.

AOG has evolved! 22-24 February, Perth WA.

Sonia Harvey — Fri, 20 Jan 2017 04:19:39 GMT

The Australasian Oil & Gas Exhibition & Conference (AOG) returns to Perth in February. Featuring hundreds of leading operators in the oil and gas sector on the exhibition floor, a free Conference program and high-profile networking events – for those wanting to stay up to date with the latest developments in the oil and gas industry, AOG is a must!

Registration for the Conference and Exhibition is free. We also wanted to offer out network a special discount to the great range of networking events on offer at AOG 2017.

By using the code AOGEV20 in registration your members will be able to get 20% off the full price of networking event tickets (including priority tables of ten).

· Subsea Welcome Drinks (Tuesday 21 February, 5.30pm) – An informal drinks reception before AOG even begins!
· AOG Official Dinner (Thursday 23 February, 6.00pm) – Fine wine, food and entertainment at AOG’s premier event, featuring guest MC, Lawrence Mooney.
· AOG Diversity & Inclusion (Friday 24 February, 12.00pm) – New to 2017, hear from those leading change in oil and gas.

Just use the link www.aogexpo.com.au and use the code in registration.

Jemena is now hiring for NGP

Sonia Harvey — Tue, 17 Jan 2017 04:06:26 GMT

Jemena is hiring for its Northern Gas Pipeline Project.

For further information and to view the opportunities follow this link: www.ngpjobsandtraining.com.au

Jemena has been working closely with communities and businesses along the proposed route from Tennant Creek in the Northern Territory to Mount Isa in Queensland to harness as much local Indigenous and local non-Indigenous participation as possible in the construction and operation of the pipeline.

During the planning, construction, and commissioning phases, Jemena’s project will create jobs for locals and also hopes to staff ongoing operations and maintenance teams at both Tennant Creek and Mount Isa from local workforces.

What does 2017 hold for digital oil and gas?

Sonia Harvey — Wed, 04 Jan 2017 02:34:24 GMT

It’s customary at the dawn of a new year to make predictions you have no idea will come true. So what are my predictions at the dawn of 2017 for the world of digital oil and gas? This is tricky because it requires some predictions for oil and gas too. Here goes...

Oil Price - No material change
Biggest investment area
Biggest pay off
Hottest careers
Biggest let downs

To read more about these predictions in detail and other great articles - head to the Digital Oil and Gas website for the latest blogs. The contributors to this blog work across the oil and gas industry, from exploration and production, to services and supply chain, in all kinds of digital areas.

This article was written by Geoffrey Cann.

Why drones have a bright future in oil and gas...

Sonia Harvey — Fri, 16 Dec 2016 01:34:11 GMT

Drones (or autonomous equipment) should encounter a very receptive market in the oil and gas sector. Of all the digital technologies drones will deliver superior triple bottom line benefits. Moreover, it is in many oil and gas basins’ best interests to accelerate autonomy solutions. Here’s why.

WHY OIL AND GAS

The oil and gas sector is actually very well suited to exploring and adopting autonomous kit.

The work can be dangerous – fumes and vapours from the product can asphyxiate or ignite
The work location is frequently remote and harsh, driving up the cost of housing human operators
Well trained human capital is now scarce because of the downsizing in the sector.
The sector is an avid consumer of the kinds of kit that autonomous favors – heavy lifters, haulers, movers.
The physical assets (plants, pipelines) are long life assets that require steady and often routine attention, making payback easier.
The work has lots of routine elements (heavy haulers trundling around mines, or engineers driving around to inspect facilities).
Environments where autonomous kit can be deployed are not shared with public use infrastructure (which takes way risks).

This is an introduction to an article written by Geoffrey Cann and Jay Billesberger... To read the entire article on Digital Oil and Gas click here.

EnerMech Secures First Subsea 7 Australian Contract

Sonia Harvey — Tue, 13 Dec 2016 02:53:37 GMT

EnerMech has been awarded its first contract by Subsea 7 in the Australian oil and gas market.

The mechanical engineering group will perform a range of subsea flowline and umbilical pre-commissioning on the Woodside-operated North West Shelf (NWS) Project’s Persephone project and North Rankin Complex in Western Australia.

The workscope includes flooding, hydro-testing and dewatering of flow lines & well jumpers and testing all hydraulic, electrical and optical cores on the main line umbilical, EFL’s and HFL’s with work expected to start in December.

EnerMech is one of the foremost suppliers to large scale oil, gas and LNG projects in Australia and has seven bases in-country, including Perth, Melbourne, Darwin and Gladstone.

Read more here.

Pressure Dynamics Makes Its Safe Presence Known in Darwin

Sonia Harvey — Tue, 08 Nov 2016 03:54:34 GMT

Pressure Dynamics are excited to announce their partnering agreement with Perrott Engineering to extend operations into Darwin, Northern Territory. This comes just as Pressure Dynamics are celebrating a quarter million incident free man hours at their Perth head office and workshop.

Stephen Harris, CEO of Pressure Dynamics said this agreement is a “significant development in Pressure Dynamics’ execution of ‘life of asset solutions’, and a major step in continuous improvement in service delivery to our customers”. He continued “Our regional presence near major oil & gas and mining projects in the Northern Territory will reduce costs and lead time for delivering hydraulic and electromechanical equipment services for our customers in the region”. Chairman Tony Adcock anticipates that this regional operation will “put Pressure Dynamics in an enviable position to service our clients across Northern Australia and South East Asia, and into Papua New Guinea in the future”.

One of Pressure Dynamics’ Project Managers, Jamie Wilson, is relocating to Darwin to lead the company’s permanent presence and services execution in Darwin and is keen to build upon the company’s strong record of delivering incident free, cost-effective project services on-time and on-budget across the region.

Facilities & Services that Pressure Dynamics can offer in Darwin include a large clean room for hydraulic component overhauls, hydraulic component test bench, cylinder strip, assembly and test benches, hose manufacturing and testing, precision machining and fabrication services. Further to this Pressure Dynamics will be providing specialised equipment to be used for on-site or remote flushing, pressure testing and certification for mineral oil and water-glycol applications.

Pressure Dynamics International

Pressure Dynamics International Pty Ltd are a one-stop shop for hydraulic systems design, installation, service and repair, and a specialist engineering and project management consultancy. With its head office in Perth, Western Australia, and now our new facility in Darwin, Northern Territory, we can locally deliver against our customers’ regional needs. Our team of highly skilled Engineers and Technicians are committed to providing industry-leading, fit-for-purpose products and services, whilst maintaining the highest standards of Quality, Health, Safety and respect for the Environment. We provide these services through our three business lines Services, Projects & Engineering and Engineered Products.

Perrott Engineering

Perrott Engineering Pty Ltd was founded in 1974 and has grown to service the mining, construction, oil & gas and maritime industries in Northern Australia and Papua New Guinea. With a highly specialised engineering, technical/trades, workshop, mobile servicing and sales for working across world-class facilities in Cairns and Darwin, there is an enormous wealth of experience and knowledge available to its customers. ISO9001 accredited by Lloyds, Perrott Engineering have extensive test facilities, precision machining capability with modern CNC equipment and the ability to design, fabricate, and re-build industrial size hydraulic and associated power delivery equipment on-site or in-house.

APPEA launches Gas4NT platform...

Sonia Harvey — Mon, 07 Nov 2016 06:08:21 GMT

With the support of key members pursuing the development of the NT’s onshore gas resources, APPEA has launched a new social media platform to promote the benefits the natural gas industry can deliver. The purpose is to a fact-based, evidence-led source of information about gas exploration and development in the Northern Territory.

Gas4NT aims to ensure that public discussion of the oil and gas industry is based on information that is factual, complete and relevant to proposed development in the NT.

For further information - make contact through the channels below:

Website: www.gas4nt.com.au

Twitter: @Gas4NT

Facebook: www.facebook.com/gas4nt

MONADELPHOUS FORMS EPC JOINT VENTURE WITH LYCOPODIUM

Sonia Harvey — Mon, 24 Oct 2016 00:29:43 GMT

Monadelphous Group Limited (ASX: MND) (“Monadelphous”) and Lycopodium Ltd (ASX: LYL) (“Lycopodium”) today announced they have formed an incorporated joint venture, MONDIUM, to target and deliver engineering, procurement and construction (EPC) projects in the minerals processing sector.

MONDIUM brings together the complementary strengths, resources and experience of Monadelphous’ multidisciplinary engineering and construction capabilities with Lycopodium’s technical expertise and minerals project delivery experience.

To see the full ASX announcement click here

NGP on progress on track

Sonia Harvey — Wed, 19 Oct 2016 01:28:55 GMT

CONSTRUCTION of the $800 million Northern Gas Pipeline is on track following the arrival of the first pipes, according to Jemena’s project director.

The NGP will connect Tennant Creek to Mt Isa in Queensland. The first gas is expected to flow in 2018. The project is partly underwritten by the excess gas of PowerWater, and is expected to create 900 jobs.

Jonathan Spink told NT Business Review this week’s arrival of 160km of pipe from overseas was within project timelines. The material will now be transported to Tennant Creek, where it will be stockpiled. Another three shipments will complete the 622km of pipe.

“At this stage, we are planning to commence construction next year as planned,” Mr Spink said. “This will be subject to all necessary environmental approvals and land access being granted. It will also depend on the extent of the wet season.

“This pipe will now be shipped to Tennant Creek by rail where we will store it until we are ready to build.”

Read more about this here: www.news.com.au

Article by ASHLEY MANICAROS

AOG 2017 - The oil and gas event the industry built

Sonia Harvey — Mon, 17 Oct 2016 07:11:22 GMT

MONTHS of research and in-depth discussions with the oil and gas industry has helped shape a new look AOG Exhibition & Conference (AOG) 2017 which will be staged in the Western Australian capital of Perth next February.

Taking into account the significant changes that have occurred in the oil and gas sector on the back of depressed commodity prices, AOG organiser Diversified Communications undertook unprecedented discussions with key industry participants following the staging of AOG 2016 earlier this year.

Alongside the feedback on subjects such as the future direction of the industry and what event activities participants and attendees are looking for, Diversified also received a powerful vote of support from key stakeholders within industry and government.

“This has been a remarkable opportunity for us to hear first-hand from those working at the coal face about where they believe the local oil and gas sector is heading in the short term and what they value most from major events like AOG,” AOG Event Director at Diversified Communications, Bill Hare, said.

Read the full media release here.

For further information visit http://aogexpo.com.au/

Oil and Gas: Darwin’s growth engine

Sonia Harvey — Thu, 18 Aug 2016 00:31:10 GMT

ENGINEERS AUSTRALIA: Opinion piece by Geoffrey Cann, National Director, Oil and Gas, Deloitte...

Darwin is fast becoming a world class hub for the hydrocarbon industry. What is the opportunity for engineering-oriented local business to participate in the success of the sector?

Darwin will soon be home to a sizeable investment in sophisticated new plant. The completion of the INPEX Ichthys project, the existing Darwin LNG plant, the launch of the Shell Prelude shore base operations, and the construction of the Northern Gas Pipeline herald a future of gas development, gas processing, supply operations and liquefaction. This creates plenty of scope for a variety of technically strong businesses to provide services to the sector.

There is plenty of growth potential too, as it is typically less costly to expand these facilities than to build new ones. These plants will also run for many decades, creating sustainable businesses....

Visit PCNT at SEAAOC 2016...

Sonia Harvey — Fri, 12 Aug 2016 00:34:55 GMT

The Petroleum Club Northern Territory is proud to be a partner of the upcoming SEAAOC Conference, taking place on the 14th and 15th September at the Darwin Convention Centre.

Now in its 22nd year, the annual South East Asia Australia Offshore & Onshore event brings together major players involved within Australasia’s oil, gas and petroleum industries, for two days of knowledge sharing and networking.

This year’s key speakers include:

· Dr. Fereidun Fesharaki, Chairman, FGE
· Rod Sims, Chairman, ACCC
· Andrew Pickering, Chairman, Infrastructure Capital Group
· Steve Ovenden, Vice President Growth, ConocoPhillips Australia
· Mr. Hitoshi Okawa, Director Corporate Coordination, INPEX
· David Bird, Vice President Production, Shell Australia
· Bill Ovenden, Vice President, Exploration, Santos
· Ross Evans, General Manager, Exploration & New Resources, Origin
· Dr. Malcolm Roberts, Chief Executive Officer, APPEA
· Antoon Boey, Executive General Manager Business Development, Jemena
· Dr. Neil Beveridge, Senior Oil and Gas Analyst, Bernstein (Hong Kong) Limited
· Matthew Howell, Upstream Analyst, Wood Mackenzie
· Rob Merrick, Partner & Co-Head of Global Energy, Herbert Smith Freehills

GONE FISHING: AUSTRALIA’S LOCAL BUSINESSES NEED TO RETHINK THEIR APPROACH TO #LNG

Sonia Harvey — Mon, 08 Aug 2016 03:15:00 GMT

An article by Geoffrey Cann following the introduction phase of the PCNT SME Maximiser Development program...

Howard Thomas and I have spent a few days in Darwin working with several local businesses on how they might get into serving the #LNG sector. The experience reminded me of fishing, and not solely because of the stunning colors of the ocean in Darwin. How should local business fish for business in the largest LNG ocean in the world (Australia’s vast new installed base of LNG plants)?

Read the full article here...http://www.geoffreycann.com/gone-fishing-australias-local-businesses-need-to-rethink-their-approach-to-lng/

Darwin's LNG Sector - Are you being served?

Sonia Harvey — Wed, 27 Jul 2016 07:34:26 GMT

Following the recent SME Maximiser Development program kick off - Catch Geoffrey Cann's focus on Darwin LNG opportunity...

The Petroleum Club NT (PCNT) has been instrumental in anticipating the LNG sector’s needs and getting these training courses organised and delivered.

Darwin is the next great growth opportunity for service companies keen to participate in Australia’s LNG growth spurt. But what are the opportunities, and how are they different from the experience in Gladstone?

If you’re not familiar with the developments in the far north, Darwin is turning into quite the hydrocarbon center. It is already home to the Darwin LNG project, a facility completed in 2006. Rising from the southern shore is themassive Ichthys project operated by Inpex, the Japanese oil and gas exploration champion. Shell will use Darwin as home to the shorebase operations for the new Prelude floating LNG vessel. Jemena, an energy company largely owned by China’s massive State Grid Corporation, has been awarded a project to build the creatively named Northern Gas Pipeline (or NGP), a new pipe from Tennant Creek in the NT to Mount Isa in Queensland. Finally, the territory government has announced their interest in applying new gas to liquids technology to augment the territory’s diesel supplies with a home brewed alternative.

NT News: PCNT - Helping business adapt to changing landscape

Sonia Harvey — Wed, 20 Jul 2016 01:07:45 GMT

Check out the NT Business news article for the SME Maximiser Development program....

View the full article here

Preparing NT SME's for new oil & gas opportunities

Sonia Harvey — Sun, 10 Jul 2016 01:12:33 GMT

SME Maximiser Development program - hot off the press: http://www.linkedin.com/pulse/preparing-nt-smes-new-oil-gas-opportunities-sonia-harvey?trk=hp-feed-article-title-publish

With world-class major projects and investment opportunities for the exploration, production and refinement of conventional and unconventional oil and gas, forecasts indicate that the Northern Territory is undergoing rapid and game-changing economic growth.

Readiness is imperative as the oil and gas industry transitions into operations and maintenance phase of the Ichthys LNG project, Prelude FLNG and ongoing maintenance for Darwin LNG. Small to Medium Enterprises must also consider potential ongoing and existing capital development to come as these major projects continue to grow. Now is the time for SME’s to ensure they are well placed to identify relevant opportunities to present their capability, deliver products and services, understand client expectations and build significant long term relationships for the project lifecycle.

The program will encourage SME’s to participate in a 3 phases process:

Phase 1: Industry education and opportunity identification

Phase 2: Business analysis and strategic development

Phase 3: Face to face engagement and capability profiling event with Operators and Tier 1 Contractor teams

Intertek extends quality assurance services into the operational phase of INPEX-led Ichthys LNG

Sonia Harvey — Wed, 29 Jun 2016 07:26:26 GMT

Perth, Australia - Intertek, a leading Total Quality Assurance provider to industries worldwide, has won a contract to extend provision of quality assurance services into the operational phase of the INPEX-led Ichthys liquefied natural gas (LNG) Project. The 3-year agreement signifies that Intertek will continue to provide local and global inspection, expediting and auditing services to the Ichthys LNG Project throughout the remainder of construction activities and now also during operation of the facilities and pipeline.

The scope of technical quality assurance services being provided is critical to complex projects and ensures the quality of materials, on-time delivery of equipment, vendor compliance and commissioning of the facility are in accordance with construction and operating standards.

The Ichthys LNG development is one of the most significant oil and gas related projects in the world, includes offshore facilities, an onshore processing facility located in Darwin and an 890km pipeline that connects the facilities. When construction is complete, the Ichthys LNG Project will produce up to an estimated 8.9 million tonnes of LNG and 1.6 million tonnes of liquefied petroleum gas (LPG) per annum as well as 100,000 barrels of condensate per day at peak.

Konrad Drogemuller, Intertek Regional Director of Industry Services, said “Since 2012, Intertek has been delivering local and global vendor inspection, non-destructive testing and verification support to the Ichthys LNG Project. We look forward to providing continued quality assurance support that will ensure safe and successful operations.”

For Technical Enquiries:

Richard Dee

Intertek Business Development Manager, Industry Services

Richard.Dee@intertek.com

Phone: +61 (0)8 9316 6019

www.intertek.com

Bringing quality and safety to life

APGA Darwin Annual Dinner - July 13 - Darwin Hilton

Sonia Harvey — Thu, 23 Jun 2016 07:21:29 GMT

This years annual APGA dinner will feature guest speaker David Gwyther, Deputy General Manager INPEX Darwin.

PCNT Members can access dicounted members rates by using the PDF registration for or contacting Charmaine on 02 6273 0577. For more information click here, email events@apga.org.au

Register now. Online and PDF registration forms are available via the APGA website. APGA events provide great opportunities for pipeliners to catch up with what is happening in the industry and what we can expect to see ahead.

We encourage our members and Darwin industry contacts to attend and look forward to seeing you there.

Northern Gas Pipeline (NGP) Project briefing sessions - Jemena, McConnell Dowell and ICN NT

Sonia Harvey — Wed, 15 Jun 2016 05:49:48 GMT

Please be advised that Jemena in conjunction with the Industry Capability Network (ICN) will be hosting Northern Gas Pipeline (NGP) Project briefing sessions in Katherine on Wednesday 22nd June and Darwin on Thursday 23rd June.

The briefings will provide an opportunity for Jemena and McConnell Dowell to give a project update and allow local businesses to engage directly with project team members. Representatives from ICN will be able to provide advice on accessing your ICN profile and submitting an expression of interest to the NGP via www.northerngaspipeline.icn.org.au

Government representatives will also be available at both Katherine and Darwin to provide information on government business development and support programs.

Darwin – Thursday 23 June, 12pm to 3:00pm

Venue: Rydges Palmerston – Darwin. 15 Maluka Drive, Palmerston.

In Darwin, one project update is scheduled followed by networking and one-on-one discussions:

12:00pm to 1:30pm NGP Project update and presentations from government, ICN and other key stakeholders.

1:30pm to 3:00pm networking and one-on-one discussions.

Click here to RSVP

Transforming Gladstone - a podcast by Geoffrey Cann, Deloitte

Sonia Harvey — Wed, 23 Mar 2016 01:00:10 GMT

As Gladstone's 3 major oil and gas projects transition into operations and maintenance phase, it's interesting to see how this change will effect the local economy and businesses in the region. I was part of a delegation last week to travel to Gladstone to understand how local industry has positioned themselves for the changes ahead and what supporting industry organisations can do to assist.

Geoffery Cann, Deloitte National Director Oil and Gas, was invited to present to the Gladstone Engineering Alliance at an event dedicated to showcasing the supply chain capabilities of the membership.

The essence of his remarks are that:

Australia has made a far reaching decision to support natural gas exports driven by demand from Asia.
The projects are moving into steady state operations
Our villain is the crude oil market that has taken a dramatic fall in price
The global LNG industry has been overturned in its wake
To survive and thrive, Gladstone needs to do three things. First, promote the interaction between its value chains (gas, coal, biomass, bauxite). Second, adopt technologies to help take out cost and improve productivity. Third, become factory-like in all aspects of work.
As only one in ten LNG projects will proceed, Gladstone has a large lead over other exporting cities and will be able to expand in the future.

To hear the podcast and gain access to slides from Geoffrey's presentation - please follow this link the article on his online blog.

Geoffrey's FUEL UP blog provides some great insights into issues facing our industry and I highly recommend subscribing for weekly updates.

We look forward to welcoming Geoffrey as a guest speak for PCNT in May following the International LNG18 Conference in to be held in Perth next month.

www.geoffreycann.com

Credit: Geoffrey Cann, Deloitte National Director Oil and Gas

Vertech announce first acquisition of local marine micro ROV specialist Geo Oceans

Sonia Harvey — Mon, 21 Mar 2016 06:48:46 GMT

Vertech have announced the acquisition of leading subsea technology company, Geo Oceans. The Perth-based industry leader in micro ROV technology joins the portfolio of companies of the award winning Scotland-based energy sector service group with immediate effect.

Geo Oceans is an innovator of safe, cost-efficient and powerful ROV technology used in marine inspection and survey tasks. It has worked closely with Perth-based company, Vertech, on a number of projects and recently team members from both companies travelled to the United States to meet with several key organisations to discuss upcoming collaborative projects.

Read more here.

Thanks for your support at AOG 2016!

Sonia Harvey — Mon, 07 Mar 2016 02:19:56 GMT

PCNT were invited to join the NT delegation made up of various businesses showcasing some diverse capabilities and service offerings locally.

This was a great opportunity for PCNT to build brand awareness to the greater industry and we had a lot of interest in membership, networking opportunities and our events here in Darwin.

It was also great to continue to build some internal relationships with the other representatives of local businesses in the delegation and consider ways we can work together and collaborate in the future.

Thank you to the Dept of Business for including us in this delegation and for sharing with us the opportunity to represent territory businesses.

Visit us at AOG 2016

Sonia Harvey — Mon, 08 Feb 2016 06:26:44 GMT

AOG 2016 is just around the corner! Don't forget to visit us at the NT stand located near the main entrance to the exhibition hall. Register now for the AOG conference and use the special PCNT discount code for 10% off your conference registration: AOG10

Rusca Bros Annual Partnership

Sonia Harvey — Mon, 08 Feb 2016 06:23:59 GMT

Thanks to Rusca Bros for your support providing an annual event partnership. Rusca Bros will be providing some great door prizes at our upcoming event throughout 2016. Congratulations to Peter Dummett on winning the February event prize drawn at the Total E&P presentation this month.

McConnell Dowell confirmed as a PCNT Foundation Partner

Sonia Harvey — Wed, 20 Jan 2016 03:11:04 GMT

Following the announcements at the end of 2015 and their successful award for the construction of the NEGI pipeline, McConnell Dowell confirmed their support to the NT oil and gas industry becoming a Foundation partner with Petroleum Club NT.

McConnell Dowell are our final Foundation partner joining our 9 other organisations contributing to supporting the oil and gas industry in Northern Territory.

This commitment contributes to PCNT's vision to continue to provide a platform to initiate and sustain business to business relationships and career opportunities across the sector.

Thanks MCD! We look forward to another great year for PCNT and our partners in 2016.

Gas entrepreneurs bet on Beetaloo Basin as Australia's answer to US shale

Sonia Harvey — Wed, 13 Jan 2016 00:02:48 GMT

Credit: Angela Macdonald-Smith

Entrepreneurs who have made billions on US shale and Queensland Coal seam gas are betting that the remote and little known Beetaloo Basin in the Northern Territory will be Australia's answer to the US unconventional gas phenomenon.

American Energy Partners (AEP), headed by US shale pioneer Aubrey McClendon, and multibillion-dollar Texas-based private equity investor Energy & Minerals Group (EMG), are among those that have been lured to the Beetaloo within recent months by huge estimates for resources as well as pipelines and LNG plants that can deliver gas to buyers.

That combination of favourable geology and multiple routes to customers, including the huge international LNG market as well as local mines and customers in southeast Australia, makes the opportunity in the Beetaloo area unique, players say.

Gallagher rescue mission date set for Santos

Sonia Harvey — Wed, 09 Dec 2015 04:36:56 GMT

Kevin Gallagher will start his rescue mission as CEO at Santos on February 1 fully expecting the low oil prices that have pushed its share price down nearly 70% in 12 months will persist for years to come – and will change the culture if needs be to turn the company around.

Full ENB News article here

Wood Group secures multi-year contract with ConocoPhillips

Sonia Harvey — Wed, 09 Dec 2015 04:31:12 GMT

Wood Group has secured a new, multi-year contract with oil and gas company ConocoPhillips in Australia.

The oil services group's PSN division will deliver brownfield engineering services to the Bayu-Undan field located south west of Timor-Leste and the Darwin liquefied natural gas plant at Wickham point in Darwin.

See more details on Share Cast here.

Jemena joins PCNT as a Foundation partner

Sonia Harvey — Wed, 02 Dec 2015 04:32:09 GMT

In light of Jemena's recent news and appointment as operator for the NEGI pipeline, they have confirmed their support to the NT oil and gas industry becoming a Foundation partner with Petroleum Club NT.

This commitment contributes to PCNT's vision to continue to provide a platform to initiate and sustain business to business relationships and career opportunities across the sector.

Jemena will construct and operate the North East Gas Interconnector (NEGI) Pipeline to connect NT gas to eastern gas markets. The pipeline will cost $800 million to construct and will run for 622 kilometres between Tennant Creek in the Northern Territory and Mount Isa in Queensland.

Transfield Services is now Broadspectrum

Sonia Harvey — Fri, 27 Nov 2015 05:44:11 GMT

"Earlier this year Transfield Services was presented with a once-in-a-generation opportunity to rebrand.

As part of the journey, we have developed a brand and story aligned to our business and that supports our ongoing development as we grow.

We have a long, rich and diverse heritage. We are moving forward with anew name and logo that represents the diversity of our people, solutions, services, capabilities, sectors, technologies and clients - it is this diversity that underpins our strength.

While our values, culture and legacy remain the same, we are excited to present our new company name - BROADSPECTRUM - and our re-energised story."

Graeme Hunt - Managing Director and CEO.

www.broadspectrum.com

McConnell Dowell and Jemena to develop NEGI Pipeline

Sonia Harvey — Wed, 25 Nov 2015 03:01:17 GMT

McConnell Dowell has been awarded the coveted construction contract for the North East Gas Interconnector (NEGI) while Jemena will be the project’s lead operator.

The NEGI will be a 623 km pipeline that will link Tennant Creek in the Northern Territory (NT) to Mt Isa in Queensland, opening up supply lines between NT and the east coast gas market. The final project is valued at approximately AU$800 million.

Further information as As reported by Gas Today here.

Monadelphous Secures Shell Prelude FLNG Maintenance Contract

Sonia Harvey — Mon, 23 Nov 2015 06:50:01 GMT

Monadelphous Group today announced it has been awarded a major long term maintenance and modifications services contract associated with Shell Australia’s Prelude Floating Liquefied Natural Gas (FLNG) project.

The contract, with an estimated value of more than $200 million is located in the Browse Basin, approximately 475 kilometres north-northeast of Broome, in Western Australia. Monadelphous will provide maintenance, brownfield modifications and turnaround services to the LNG process plant, support utilities, hull and non-process infrastructure including accommodation and control rooms.

The contract also includes the delivery of fabrication services from Darwin in support of offshore operations.

Shell Prelude Floating LNG Asset Manager, Jim Marshall (left) and Monadelphous Chairman Jon Rubino. Photo credit: Raw Image

Could onshore development help lower our CO2 emissions?

Sonia Harvey — Mon, 23 Nov 2015 05:34:38 GMT

An interesting article discussing the dramatic greenhouse gas reductions in the US... http://energyindepth.org/national/sierra-club-admits-fracking-has-helped-lower-co2-emissions-2/

INPEX Offshore pipeline successfully completed

Sonia Harvey — Mon, 09 Nov 2015 03:14:36 GMT

INPEX CORPORATION (INPEX) have announced the INPEX-operated Ichthys LNG Project safely completed the offshore pipelay for its 890-kilometer, 42-inch diameter gas export pipeline that began in June 2014. It is the longest subsea pipeline in the southern hemisphere and the third longest subsea pipeline in the world.

The gas export pipeline will deliver gas from the Ichthys Gas-condensate Field to the onshore facilities at Bladin Point near Darwin for processing. “Completion of the offshore pipelay marks a significant milestone for the project,” Managing Director Ichthys Project Louis Bon said.

More new contracts announced for Monadelphous Group

Sonia Harvey — Mon, 09 Nov 2015 03:11:14 GMT

Monadelphous Group Limited has announced it has been awarded new contracts and contract extensions for customers in the resources and energy markets with a combined value of approximately $150 million. The latest agreements take the value of new contracts and additional work secured since July to approximately $600 million. Details can be found at: https://www.monadelphous.com.au/news/2015/11/monadelphous-contracts-update/

Monadelphous establishes US partnership

Sonia Harvey — Thu, 05 Nov 2015 06:01:14 GMT

Monadelphous Group Limited has announced it has entered into an agreement with US-based Mascaro Construction for the establishment of a jointly-owned company, Monaro LLC (“Monaro”).

Monaro will be based in Pittsburgh, USA, and deliver multidisciplinary construction services in the Marcellus and Utica gas regions of North East USA, including the states of Pennsylvania, Ohio and West Virginia.

The Marcellus and Utica regions contain an abundance of shale gas, and have seen significant investment in recent years in the construction of infrastructure to support gas extraction, processing and downstream production.

More information available here.

EnerMech Deliver First ECITB Mechanical Joint Integrity Training To Australian Oil and Gas Market

Sonia Harvey — Thu, 05 Nov 2015 04:20:01 GMT

EnerMech is the first company to be accredited by the Engineering Construction Industry Training Board (ECITB) to deliver Mechanical Joint Integrity (MJI) training courses in Australia.

The ECITB Mechanical Joint Integrity courses provides initial training, backed by documented work experience and concludes with further practical and theoretical assessments, providing Australian industry with globally recognised MJI competency standards.

EnerMech’s ECITB approved Trainer/Assessors bring extensive theoretical knowledge and practical experience drawn from many years of involvement in the oil, gas and energy sectors.

Congratulations EnerMech team. Read more about this update here.

APPEA: New report further highlights how CSG benefits Queensland

Sonia Harvey — Tue, 13 Oct 2015 06:52:26 GMT

The oil and gas industry welcomes a new report released by the Australian Government recognising the economic importance of Queensland’s coal seam gas industry.

The report titled ‘Review of the socioeconomic impacts of coal seam gas in Queensland’ says the “headline economic impacts of CSG development in Queensland to date are found to be net positive, and are attributable to increases in employment, income, output, consumption and government revenue”.

APPEA Chief Executive Dr Malcolm Roberts said the benefits of world-first CSG-LNG projects would never have materalised without political leadership and community efforts to work, liaise with and understand how natural gas is produced and used.

See the APPEA website for more information.

Gas Hydrates and Flow Assurance: Free course @ NACOG, CDU

Sonia Harvey — Thu, 08 Oct 2015 00:29:19 GMT

Gas hydrates are ice-like compounds formed as a result of combination of water and suitable sized molecules under low temperature and high pressure conditions. The necessary conditions for their formation could exist in offshore and some onshore pipelines. The formation of gas hydrates could cause in serious economical, operational and safety concerns.

The course will be delivered by Professor Bahman Tohidi, Centre for Gas Hydrate Research, Institute of Petroleum Engineering, Heriot-Watt University, Edinburgh, UK.

See our events page for more details and to register your attendance: https://pcnt.com.au/events

INPEX-operated Ichthys LNG Project floats world’s largest semi-submersible

Sonia Harvey — Fri, 25 Sep 2015 02:57:42 GMT

INPEX CORPORATION (INPEX) announced today the INPEX-operated Ichthys LNG Project safely launched its central processing facility (CPF) on 19 September 2015 from the offshore floating dock at the Samsung Heavy Industries shipyard in Geoje, South Korea, where it is being constructed.

INPEX President Director Australia Seiya Ito said the successful launch was one of the Project’s most significant achievements.

“To see this enormous facility in the water is a testament to those who have worked for years to make it a reality,” Mr. Ito said.

“This milestone is a clear demonstration that the Ichthys LNG Project is making good progress and that we are working in an excellent spirit of cooperation with our Korean contractors.”

Managing Director Ichthys LNG Project Louis Bon expressed his congratulations to the Project and contractor teams for the excellent result.

“The operation was completed within two days in the safest conditions,” Mr. Bon said. “The CPF is now berthed quayside at the shipyard where work is continuing to lift and install the living quarters and integrate and commission all equipment in preparation for the CPF’s sail away. All teams are working together in a very efficient manner to achieve our next targets.”

Once completed, the CPF, which the Project began constructing in January 2013, will be towed 5600 kilometers to the Ichthys Field in the Browse Basin, offshore Western Australia, where it will be permanently moored for the life of the Project—more than 40 years.

Source: http://www.inpex.com.au/news-media/news/

VERTECH - leading the way, safely.

Sonia Harvey — Thu, 24 Sep 2015 04:18:42 GMT

Gorgon LNG - Vertech have 60 personnel on the construction and commissioning phases of the Gorgon LNG project. Those that make up this team are part of one of the largest ongoing rope access projects in the world.

Four days ago Vertech achieved a major milestone onsite. The Vertech barrow Island construction & commissioning team have now been on the project for 2 years. The amazing people that make up this team have remained recordable injury and incident free which is a massive achievement. Today makes 735 days incident and injury free for the team and growing each and every day.

Vertech are proud to be a Foundation Sponsor of Petroleum Club NT.

SEAAOC Competition Winner

Sonia Harvey — Wed, 02 Sep 2015 03:09:24 GMT

Congratulations to Toni Crew, HR & Business Development Manager from MMC Australia who is the winner of our SEAAOC business card draw. Toni has won 2 free tickets to our next event. Thank you to everyone who popped by the stand throughout the conference. Stay tuned for more announcements of our upcoming events.

PCNT Launch event...

Sonia Harvey — Tue, 25 Aug 2015 06:20:13 GMT

Last night we held the inaugural PCNT networking event in the Grand Ballroom at SkyCity, Darwin. Louis Bon, MD Ichthys Project was our guest speaker and shared a detailed update on the project and the milestones achieved so far. We had a great attendance with a diverse range of members and guests. Thank you to everyone who came along and I hope you enjoyed yourselves as much as I did. Stay tuned for our next event updates coming soon.

Visit us at SEAAOC

Sonia Harvey — Tue, 25 Aug 2015 06:15:12 GMT

SEAAOC officially opens in Darwin today. Now in its 21st year, SEAAOC is a joint initiative between Informa Australia & the Northern Territory Government. PCNT will be exhibiting so please come by our stand to introduce yourself and find out more about membership,sponsorship opportunities and upcoming events.

Membership now open!

Sonia Harvey — Sat, 01 Aug 2015 03:30:00 GMT

Petroleum Club NT is now accepting applications for membership. Become one of our founding members by joining the Club today! For information on how to join, visit our Membership page.

Complete the online application for approval. Once the membership process has been completed you will be able to log in and view our online members directory and other great member benefits.

Energy Club NT News

EDL to deliver sustainable energy for Jabiru

EDL wins contract to build hybrid power plant for Jabiru

Santos to face more climate resolutions at AGM

Empire receives 'world-class' Carpentaria-1 lab results

Beetaloo gets special mention in PM speech

NERA establishes hydrogen clusters

Minister Lawler's Office: Electricity Market Priority Reforms Program Papers Released

Electricity Market Priority Reforms Program Papers Released

Sun cable: Milestone renewable energy agreement

Twiggy declares the age of hydrogen is here

Beetaloo Basin joint venture update

Feds pave new roads to Beetaloo investment

Origin announces giant battery in NSW

Shell chief hints at transition plans

Eni sale off the table

Santos sanctions Bayu Undan infill

Hydraulic Fracturing Community Bulletin #36

Juniors rejoice over $50M fund for Beetaloo exploration

Hydraulic Fracturing Community Bulletin #35

Seventh Hydraulic Fracturing Implementation Progress Update

1. SREBA

2. Regulation and Assessment

Offsets (recommendation 8.9) and Emissions (recommendation 9.8)

Petroleum Act amendments

EBPC Act amendments

3. Completing implementation of Inquiry recommendations

Further amendments to the Petroleum Act

Seismicity Framework

Financial Assurance Framework

The Northern Territory’s Gas Service and Supply Plan

4. Information Management and Community Engagement

Online portal

Community engagement and Social Responsibility

Aboriginal Information Program

Independent Oversight of the Seventh Hydraulic Fracturing Implementation Progress update

Community and Business Reference Group

Want to find out more?

Empire on track for Beetaloo frac

Origin puts pedal to the floor at Beetaloo project

Tamboran makes major acquisition in Beetaloo

Central signs gas agreement with Macquarie

Inpex contractor found not guilty of causing death of worker

Taylor heads to the Beetaloo

MANUFACTURING ONSHORING WEBINAR

Origin completes fraccing of big budget Beetaloo well

Feds to "turbo charge" oil and gas investment in Northern Australia

Totally gas-fired

Ichthys sends 200th cargo

Empire to spud Carpentaria-1 today

Green hydrogen "nirvana": Coleman

Origin begins fraccing big budget Kyalla well

Drilling giant to cut emissions in half by 2030

Australia's economic saviour officially gas

BOOSTING AUSTRALIA’S FUEL SECURITY

Empire mobilises rig for Beetaloo well

Work on pipeline connecting Beetaloo to Darwin underway

New Ministry to Lead the Territory’s Economic Recovery

Shell Australia attempts to bring Prelude FLNG back online

Nominate a Resilient Territory Business for the 2020 Chief Minister's NT Export and Industry Awards

Hydraulic fracturing Community Bulletin #34

SREBA studies update

Please direct all correspondence to: Hydraulic Fracturing Inquiry Implementation Taskforce GPO Box 4396, Darwin NT 0801 T 08 8999 6573 E hydraulic.fracturing@nt.gov.au W hydraulicfracturing.nt.gov.au

NAIF approves gas and solar power plants in the NT

NERA unveils national seed funding program as first major step towards creating Australia’s future hydrogen technology cluster network

Hydrogen and hydrogen-related technologies represent the next big energy opportunity for Australia

Empire raises cash for Beetaloo exploration

GR Engineering posts $10M loss due to Northern Endeavour fiasco

Australia's hydrogen export future depends on government action

Santos confirms Bayu Undan field life extension

Kyalla venture back in the Beetaloo

Territory Story podcast features Origin's Stephanie Stonier

New pipeline to connect NT gas to East Coast Market

Woodside and Santos poised to win hydrogen race: Bernstein

Armour pays down debt and brings in the cash

Empire contracts Schlumberger for NT well

Hydraulic fracturing Community Bulletin #33

Armour Energy overhauls management team to fast-track expansion

Gear change for hydrogen, CCS: Macquarie

Santos and Armour put pedal to the floor at Northern Australian permits

Please direct all correspondence to:
Hydraulic Fracturing Inquiry Implementation Taskforce
GPO Box 4396, Darwin NT 0801
T 08 8999 6573
E hydraulic.fracturing@nt.gov.au
W hydraulicfracturing.nt.gov.au