Industry News

Australia will still need substantial gas production 26 years from now to ensure reliable and affordable energy in 2050, even under a net zero scenario, according to The future role of natural gas in Australia and the region.

EY was commissioned by Australian Energy Producers to provide an independent assessment of the future role of natural gas in Australia and the region to inform Australia’s Future Gas Strategy.

EY examined around 350 net zero pathways around the world and has recommended Australia should prepare for multiple gas production scenarios due to the uncertainty of the transition.

“Gas is expected to play a major role in the global net zero transition,” the report said.

“Ongoing investment in gas supply is required to maintain production levels from operating fields. As these fields begin to decline, investment in new supply options will be required to meet projected demand.

“To manage the risks associated with the transition to net zero Australia’s energy and climate mitigation policy needs to prepare for all three future scenarios, with policy and regulatory actions that keep as many pathways to net zero viable for as long as possible.”

“Preparing for only one pathway leaves Australia extremely vulnerable to developments that are outside Australia’s control.”

Under the Electrify Scenario, domestic and regional demand for Australian gas would total 56 per cent of current production levels in 2050 after a renewable rollout equal to 20 times current levels.

Under the Blended Scenario, demand for Australian gas would increase to 2040 before decreasing to 86 per cent of current levels by 2050 as renewables grow to 13 times current levels.

Under the Capture Scenario, demand for Australian gas would rise 30 per cent from current levels by 2050 with a more limited renewable rollout at only 10 times current levels.

Australian Energy Producers Chief Executive Samantha McCulloch said: “The study shows gas is a safety net for Australia’s energy transition, providing affordable and reliable energy for households and businesses.

“The inclusion of natural gas as a core pillar of Australia’s energy and climate policies will speed up the transformation and secure substantial economic benefits from net zero.”

The report found Australia’s unique position serving growing Asian demand meant it had to chart its own course, capturing more of the global market and lowering emissions through supporting renewable roll-out and coal-to-gas switching.

The report noted that LNG represents “a significant export revenue opportunity for Australia across all three scenarios, even where LNG exports are complemented by low-carbon hydrogen exports over time.”

Ms McCulloch added: “Australia needs to plan for both strong domestic and international demand for gas to secure the associated emissions reduction and economic opportunities.

“As well as keeping the lights on across Australia and the region, Australia’s gas industry delivered over $16 billion of government revenues last financial year and spent another $45 billion with Australian businesses, all the while supporting tens of thousands of jobs across the economy.

The report found Australia’s gas industry also had a critical role to play in rolling out net zero technologies and fuels including carbon capture, utilisation and storage (CCUS) and low-carbon hydrogen.

“CCUS and hydrogen are key complements to natural gas in a zero emissions future — all plausible net zero pathways involve CCUS and hydrogen at different scales,” the report said.

ENDS

EY was engaged to provide an independent assessment of the future role of natural gas in Australia and the region. All references to the report must be considered in the context of the full Report.

Attachment: EY Report, The future role of natural gas in Australia and the region

Source: Media Release - Australian Energy Producers

NT Parliament convenes tomorrow for the final Sittings of 2023, with a host of legislative reforms on the agenda.

Proposed reforms in the Environment Protection Legislation Amendment Bill (Serial 105) represent the most significant milestone towards ensuring the Territory’s environmental regulatory framework is able to deliver ecologically sustainable development since the commencement of the Environment Protection Act 2019. The key aspect of the Bill separates environmental regulation of mining activities from resource and development functions.

Victim survivors of domestic and family violence will receive more protections under proposed reforms in the Justice Legislation Amendment (Domestic and Family Violence) Bill 2023. The Bill also provides stronger measures to hold offenders to account.

The Residential Tenancies Amendment Bill 2023 offers a range of safeguards for tenants experiencing domestic and family violence; and strengthens renters’ rights. This includes prohibiting rent bidding, and improving privacy protections for tenants.

Parliament will also debate reforms that better support victims of crime. The Victims of Crime Assistance Legislation Bill 2023 proposes a number of changes to streamline and expedite processes for victims to receive financial assistance.

Quotes attributable to Leader of Government Business Chansey Paech:

“Despite the end of the year drawing near, the Territory Labor Government is maintaining its momentum for change with a big Sittings agenda this week.

“We continue to strengthen legislation that supports the rights and interests of Territorians, and maximises the efficiency, effectiveness and integrity of Government operations.”

Media Contact: Jasmin Afianos - 0419 361 127

Source: Northern Territory Government

EP 117 Operational Update Stimulation Commences at SS-1H

Highlights:

• Tamboran has commenced stimulation activities at the Shenandoah South 1H (SS-1H) well pad within its 38.75 per cent owned and operated EP 117 permit.

• The program, which is planned to include 10 stimulation stages over a 500-metre (1,640-foot) horizontal section within the Mid-Velkerri B Shale, is expected to be completed in December 2023.

• The campaign is being conducted by Condor Energy Services (Condor), a respected Australian energy services provider.

• On completion of the stimulation campaign, production tubing will be installed ahead of the flowback of stimulation fluid and gas breakthrough.

• Tamboran expects to release 30-day initial production (IP30) flow rates in Q1 2024, subject to weather conditions and the timing to flow back stimulation fluid to achieve gas breakthrough.

Please click here to view the full announcement.

Source: Tamboran Resources

Santos has strengthened its position as a regional carbon capture and storage (CCS) leader by entering into a strategic collaboration agreement with ADNOC, a progressive energy company based in Abu Dhabi.

The agreement will explore the potential for establishing a platform offering decarbonisation services to a broad range of energy users and includes potential:

• Collaboration on the development of CCS technologies
• Joint participation in global CCS projects
• Provision of CCS solutions to emitting companies across Asia including the development of shipping and transport infrastructure.

Santos Energy Solutions Executive Vice President Alan Stuart-Grant said the agreement highlighted the globally-recognised credibility of Santos’ growing CCS portfolio and the ongoing role for energy companies in delivering real decarbonisation solutions to the large energy-consuming economies of Asia.

“Energy companies like Santos and ADNOC have been long-term energy suppliers to the Asian region and key to its energy security, industrial growth and rising living standards,” Mr Stuart-Grant said.

“Through collaboration, we can accelerate the region’s transition toward a low-carbon future that is both reliable and affordable. There is an enormous opportunity for traditional energy suppliers like Australia and the United Arab Emirates to be at the forefront of helping regional decarbonisation through utilisation of our natural competitive advantages in carbon storage and energy supply chains.

“As demand for CO2 transport and storage grows, Santos continues to work with governments to urgently progress the necessary regulatory, fiscal and carbon credit frameworks to support international collaboration on CCS to decarbonise our region.

“We know a large scale-up of CCS is required to meet the world’s climate objectives and companies like Santos and ADNOC have the technology, infrastructure and knowhow to be able to deliver low-cost CCS and low-carbon energy on a global scale.

“CCS is a proven technology that is critical to achieving climate goals throughout the region and this agreement with ADNOC positions Santos to accelerate the development and expansion of our CCS portfolio to meet the increasing demand for CCS in the region.”

Santos has a three-hub CCS strategy with the Moomba CCS project on track for first injection in 2024, front-end engineering and design (FEED) at Bayu-Undan CCS (offshore Timor Leste) nearing completion, and plans for Reindeer (offshore Western Australia) progressing well.

The International Energy Agency 2023 Net Zero Roadmap update assumes about 6 gigatonnes per year of storage from CCS will be required by 2050 – more than 100 times more than today’s operational capacity.

The IEA recognises Australia’s competitive advantage in CCS, saying earlier this year, “Australia is well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and support regional emissions reductions.”

ADNOC is a progressive global energy company based in Abu Dhabi. The company has allocated an initial $15 billion to advance and accelerate lower-carbon solutions by investing in new energies and decarbonisation technologies.

The company has ambitions to reach net zero by 2045 and has already announced the intention to capture up to 10 Mtpa of CO2 by 2030.

To view full media release, click here,

Source: Santos Ltd

Clean, green power across the Territory is a priority of the Territory Labor Government.

A renewables future is one step closer for the Tiwi Islands, with construction underway at the Wurrumiyanga Solar Infill and Energy Storage Pilot Project.

Wurrumiyanga is home to over 2000 people, and soon it will be powered by 50 per cent renewable energy.

The Territory Labor Government is investing $6.1 million into the project, which will deliver 1.2 megawatts of additional solar PV to the community, and a Battery Energy Storage System with a capacity of 3 megawatt hours.

Local and Australian company 5B is delivering the project, with earthworks and the installation of cyclone-resilient solar arrays now complete.

Facilitating a renewal of the community’s energy system is a key component to this project, which includes aging diesel infrastructure and dated solar PV technology.

This is an important step forward in delivering advanced renewable energy for Wurrumiyanga and changing the way power is generated across our communities.    

The project is expected to be completed and operational by 2024, allowing the community to be powered by 50 per cent renewable energy.

This announcement comes as the remote community of Titjikala, south of Alice Springs was recently powered by 83 per cent renewable energy.

Quotes attributable to the Minister for Renewables, Nicole Manison:

 “This pilot program in Wurrumiyanga is an important step towards the Territory Labor Government achieving our target of 50 per cent renewables by 2030, which includes an average of 70 per cent renewables in communities supplied by Indigenous Essential Services.

“We will keep doing the hard work as we push towards our target of 50 per cent renewables by 2030 and net zero emissions by 2050.

“A renewables future is now one step closer for the Wurrumiyanga community and we look forward to extending the lessons learnt from this project to other remote Territory communities.”

Quote attributable to the Member for Arafura, Manuel Brown:

“It is great to see our largest community on Bathurst Island driving down emissions and creating stable reliable energy in line with the rest of the Territory.

 “Soon we will see less and less communities around the NT rely on diesel powered generators through Territory Labor’s remote power system strategy, a strategy which is changing lives in our most remote communities.

5B Chief Strategy Officer Nicole Kuepper-Russell

“We’re proud to be part of this important project that will see almost 50 per cent of the Wurrumiyanga community’s power provided by renewables, delivering lower-cost cleaner energy, greater energy resilience, and employment opportunities.

“Our latest generation high-wind resilient 5B Maverick - wind rated up to 72 metres per second - is specifically designed for cyclone prone regions like the Tiwi Islands. It is also fast to deploy in remote regions, a deployment team of four unfolded the 1.2 MW 5B solar farm on Bathurst Island in just four days, with mechanical installation, including unpacking, staging, cabling, the extra anchoring required for wind region C and clean up, taking less than two weeks.

“We’re working to replicate this rapid deployment model across other remote communities in the Territory and we welcome the Government’s support in accelerating renewable energy projects and investments.”

Source: Northern Territory Government Newsroom

Santos notes the decision of the Federal Court of Australia today ruling pipelay activities can commence on an 86km section of pipeline for the Barossa Gas Export Pipeline (GEP).

As per the ruling, no activity will occur south of kilometre point 86 (KP86), as outlined on the map below.

The Court has set 4 December 2023 as the date of commencement of the hearing of application bought by Mr Simon Munkara and two others seeking to restrain Santos from continuing the pipelay until it revises its environmental plan after re-consultation with relevant persons, and NOPSEMA accepts a revised plan.

As detailed in its ASX announcement on 2 November 2023, Santos intends to vigorously defend those proceedings.

Santos is committed to delivering the Barossa Gas Project.

With the Barossa Project set to supply the Darwin LNG plant for years to come, it is important for local jobs, as well as opportunities for Traditional Owners, exports, and relationships with investors and gas customers in Asia, that this project continues. 

To view the full ASX announcement / Media release (and map), click here.

Source: Santos.com

The Northern Territory’s abundant solar resources and geographic location position us well to meet the growing demand for green energy in Asia and the Pacific.

Today, Chief Minister Natasha Fyles signed an MOU with Samsung C&T Corporation Engineering & Construction to develop a green energy project in the Northern Territory.

Samsung C&T will work with the NT Government to establish large-scale renewable energy generation, transmission and storage in the Northern Territory, including photovoltaic, wind, hydrogen and battery energy storage systems.

Additionally, Samsung C&T intends to establish a substantial manufacturing hub as part of this project.

The clean energy produced will help manufacturing companies, including Samsung affiliates and other global companies, transition to 100% renewable energy.

A working group comprised of Samsung C&T and the NT Government will be established under the MOU to scope and investigate the feasibility of a large scale green energy project in the Northern Territory.

The MOU will operate for a period of two years and, during this time, suitable locations for the green energy project will be identified, with the Middle Arm Sustainable Development Precinct one of the locations to be investigated.

A green energy project of this scale is a game changer for the Northern Territory and would create thousands of local jobs and generate billions of dollars into our economy.

Quotes attributed to Chief Minister Natasha Fyles:

“Renewable energy makes economic and environmental sense.

“Signing today’s green energy MOU with Samsung C&T, is a key step towards creating local jobs and significantly contributing to the Territory’s drive to become a hub for low emissions sustainable manufacturing.

“The MOU sets out how the NT Government and Samsung C&T will work collaboratively to explore options and conduct feasibility investigations including how we can facilitate this project being built in the Territory.

“Samsung knows what Territorian’s know, our solar irradiance and proximity to Asia makes this the ideal place to invest in a green energy future”.

Quotes attributed to the Samsung C&T President & CEO of Engineering & Construction Group, Sechul Oh:

“Samsung C&T is committed to global industry decarbonisation, leveraging the exceptional resources in the Northern Territory.

“The MOU establishes a collaborative partnership for building a prime hub dedicated to green energy production.

“Together, we aim to decarbonise Australia and South Korea and contribute to the development of a sustainable economy.”

Source: NT Government News Room

Consultation is now open on the focus areas for Australia’s First Nations Clean Energy Strategy.

The consultation invites your views on how to enable First Nations peoples to lead and benefit from the clean energy transformation.

The First Nations Clean Energy Strategy aims to ensure First Nations peoples can:

• meaningfully participate in and benefit from Australia’s clean energy transformation
• access affordable and reliable renewable energy
• lead and be equal partners in the energy transformation.

First Nations peoples have strong local and cultural knowledge, including management of Country. This knowledge can, and should, inform how Australia transforms its energy systems to achieve net zero emissions.

We’re developing the strategy in partnership with First Nations peoples, organisations and communities across Australia.

We’re also holding a series of Roundtables with:

• representatives from First Nations communities
• Traditional Owners
• Prescribed Body Corporates
• Land Councils
• industry, government, law and policy experts
• state and territory governments.

We will use the feedback received through this consultation, the Roundtables and regional conversations to inform the development of the First Nations Clean Energy Strategy, which will be delivered by mid-2024.

To have your say:

• read the consultation paper
• provide a written submission (optional)
• provide feedback by completing the online form on the consultation hub.

Read more

• First Nations Clean Energy Strategy | energy.gov.au
• First Nations Clean Energy Strategy | fnces.org.au

Source: Department of Climate Change, Energy, the Environment and Water

GR Production Services is pleased to announce the award of a new three-year contract with two three-year extension options with INPEX Operations Australia Pty Ltd (INPEX) for the provision of operations and maintenance support services to the Ichthys LNG upstream and downstream facilities.

The scope of work involves providing production and technical roles to INPEX as required to supplement their business, and support for maintenance shutdown planning and execution on all facilities.

The estimated contract value over the three-year period is $28 million. Work on this project is expected to commence on 1 December 2023.

Commenting on the award of the contract, GR Production Services CEO, Cameron Wills, said:

“We are delighted to have been selected to support INPEX on the Ichthys LNG Onshore and Offshore production facilities and look forward to building a strong partnership through the delivery of valued services.”

Source: GR Production Services

The Territory Labor Government is powering towards its target of 50 per cent renewable energy by 2030.

During the month of September, the remote community of Titjikala, about 130 kilometres south of Alice Springs, was powered by 83 per cent renewable energy.

Home to 200 residents, the community was solely powered by renewable energy for an average of 20 hours per day during the month.

Titjikala has a 400 kilowatt solar array, integrated with a 300 kilovolt-ampere (970 kilowatt hour) battery energy storage system.

It is one of 25 communities part of the Power and Water Solar Energy Transformation Program (SETuP).

SETuP integrates 10 megawatts of solar in remote communities, to transition to a renewable energy future and reduce reliance on diesel fuel.

Battery energy storage system technology enables the storage of excess solar energy and allows diesel engines to be turned off during the daytime.

The diesel engines start up again overnight when the battery energy storage system is depleted.

Installation of the battery energy storage system was funded by the Northern Territory Government and commissioned in March 2021.

The SETuP program is largest isolated off-grid solar program in remote communities and has enabled significant savings on diesel and transport costs.

Quotes attributable to Minister for Renewables, Nicole Manison:

“Titjikala is a great remote renewable energy success story – providing safe, reliable and environmentally friendly power to the community.

“The Territory Labor Government wants a future powered by renewable energy, creating green jobs and driving down emissions.

“With our abundant solar resources, we can create permanent and stable energy solutions that decarbonise our regional and remote areas.”

Source: NT Government