Industry News

Australia’s oil and gas industry has launched a new public awareness campaign, Natural Gas – Keeping The Country Running, highlighting the importance of natural gas to the nation.

The national campaign will highlight the many roles natural gas plays in society – creating products critical to everyday life, delivering substantial economic benefits, supporting tens of thousands of jobs and reducing emissions to help Australia reach net zero by 2050.

Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch said while most people knew gas fueled their barbecues, stoves and heaters, many were unaware of the critical role of gas in so many other aspects of their lives.

“Natural gas is keeping Australia running on the path to net zero,” Ms McCulloch said.

“This public awareness campaign will explain how gas is ensuring reliable energy for millions of Australian households and businesses while supporting renewables and emissions reductions.

“Gas is important to the Australian way of life in so many ways.

“Gas is a natural ally of renewables and is playing a growing role to keep the lights on as coal retires, backing up solar and wind as a stable and reliable source when renewables are unavailable.

“Gas supports tens of thousands of jobs in manufacturing and then there’s all the things in our homes made with the help of gas.

“If we removed gas-related products, so much of what we rely on everyday would disappear: beer bottles, the bricks that build our homes, glass in buildings, packaging and paper as well as fertilisers for agriculture.”

Natural gas facts can be found at the campaign website, futureofgas.com.au.

View the campaign video here.

Ms McCulloch said the campaign would run across all media platforms in every state of Australia.

“Gas has never had a more important role to play in our energy mix and this campaign will share the many ways in which gas is central to our economy and everyday lives,” she said.

“The Australian gas industry is committed to playing its part to ensure the best outcomes for Australia throughout the energy transformation.”

 Source: APPEA

Major EP187 contingent resources upgrade

LNG scale discovered resource delineated in EP187 

• Successful 2022 Beetaloo work program has resulted in the certification of an LNG scale resource as independently assessed by Netherland, Sewell & Associates, Inc. (“NSAI”) for Empire’s wholly owned and operated EP187

• Due to the high calorific value of the Empire’s EP187 gas, NSAI assessed sales volumes in PJ have a higher energy content than equivalent dry gas volumes.

For full ASX announcement, click here.

Atlassian co-founder Mike Cannon-Brookes and his investment partners have emerged as the owners Sun Cable after a near six-month sales process following the collapse of the company behind a vast solar energy project.

Sun Cable, which intends to construct a large solar plant in Australia’s north before shipping power to Singapore using an undersea cable, fell into administration in January after Mr Cannon-Brookes fell out with the company’s other major shareholder, Fortescue Metals chairman Andrew Forrest.

Mr Cannon-Brookes’ private investment vehicle, Grok Ventures, will acquire Sun Cable after winning a bidding process run by FTI Consulting. The investment is backed by Quinbrook Infrastructure Partners, as first flagged by The Australian Financial Review’s Street Talk column on Thursday.

Mr Cannon-Brookes said the agreement was a “big step in the right direction” for the project. “We’ve always believed in the possibilities Sun Cable presents in exporting our boundless sunshine, and what it could mean for Australia. It’s time to stretch our country’s ambition,” he said.

“We need to take big swings if we are going to be a renewable energy superpower. So swing we will.”

Grok and Quinbrook intend to spend several weeks undertaking more detailed work with Sun Cable management before outlining their development priorities for the project. Dr Forrest had intended not to proceed with the 4200-kilometre undersea transmission cable between Darwin and Singapore if he was successful in acquiring the company.

The company has been tipped to need $35 billion in project funding. The cable was the bone of contention between the two billionaires and sparked the public rift between them – as well as the administration.

Dr Forrest said he remained “unconvinced of the commercial viability of the Australia-Asia Powerlink”, adding that his company, Squadron Energy, “did not participate in the final binding bid process for Sun Cable”.

“Squadron decided the capital allocation did not align with Squadron’s strategic goals, as we are already working to deliver 30 per cent of the renewable energy required to meet the federal government’s target of 82 per cent renewables by 2030, and want to bring new green electrons into the grid as soon as possible,” Dr Forrest said. “We have decided to focus on the existing 20GW pipeline of assets as a much faster way to achieve those goals and take Australia closer to a carbon-free future.”

Dr Forrest added: “As an interested shareholder we look forward to better understanding the details of the deal.”

Grok had already scored an early win during the administration, putting forward a successful proposal to provide Sun Cable with $65 million in interim funding while the sales process played out.

FTI was advised by Moelis during the sale process.

David Scaysbrook, the managing director of Quinbrook, said: “With construction well under way on the largest solar-plus-storage projects ever undertaken in the US and the UK, [the fund] is well positioned to assist Grok to complete the development of what promises to be not only one of the largest renewables projects in Australia, but a project of global significance.”

Moelis, alongside Macquarie, had already been working with Sun Cable to find its $30 billion project funding. It had raised $210 million in March 2022 to keep it rolling through 2023, but a high cash burn meant it was forced to consider raising more money, creating disagreement between Mr Cannon-Brookes and Dr Forrest about how to proceed. Others who had invested last year included MYOB founder Craig Winkler, NextDC chief executive Craig Scroggie and Beyond Zero Emissions boss Eytan Lenko.

FTI said that, based on the pre-administration claims that are outstanding, the transaction is expected to allow for unsecured creditors of Sun Cable to be paid in full. The completion of the transaction is subject to the satisfaction of customary conditions and administrative matters.

Source: Australian Financial Review

Key points:

• Mike Cannon-Brookes and Andrew Forrest initially partnered on the solar farm plan

• Mr Cannon-Brookes's Grok Ventures wants to send much of its power to Singapore

• Mr Forrest's Squadron Energy says it's "unconvinced" that plan is viable 

Billionaire Mike Cannon-Brookes has claimed control of the controversial Sun Cable solar export project, winning a bidding war after falling out with his former project partner, Andrew Forrest.

The pair, who are among Australia's richest men, have been in a closed door bidding process to wrest control of what's been promoted as "the world's largest solar energy infrastructure network". 

Andrew Forrest's entity Squadron Energy said it made an initial offer for the Northern Territory project, but then withdrew from the final bidding process. 

Sun Cable's administrators said the company had now entered into a sale agreement with a consortium connected to Mr Cannon-Brookes's Grok Ventures.

The consortium also includes infrastructure investor Quinbrook.

Under their control, the project will pursue its original goal of exporting solar power from the outback of Australia to the island nation of Singapore. 

Mr Forrest said his company was "unconvinced of the commercial viability" of sending the power to Asia.

But, in a statement, Mr Cannon-Brookes said the outcome was "a big step in the right direction":

"We've always believed in the possibilities Sun Cable presents in exporting our boundless sunshine, and what it could mean for Australia. It's time to stretch our country's ambition. We need to take big swings if we are going to be a renewable energy superpower. So swing we will."

A joint statement from Grok and Quinbrook said Sun Cable had "the potential to be a nation-building project for Australia, generating and transmitting critical clean energy to Singapore and [supplying] renewable energy to new Northern Territory industries".

Sun Cable was put up for sale earlier this year, after a split between the two men, who were its biggest backers when it required an initial investment of $30 billion. 

The men had different visions over what to do with the 20-gigawatts of power the solar farm was expected to generate in the middle of the outback.

On Friday, Mr Forrest congratulated Mr Cannon-Brookes, and issued a statement saying:

"While Squadron Energy did not participate in the final binding bid process for Sun Cable, we are delighted that other investors like Grok are playing a role in tackling global warming, by replacing fossil fuel investment with green energy projects.

"Squadron decided the capital allocation did not align with Squadron's strategic goals, as we are already working to deliver 30 per cent of the renewable energy required to meet the federal government's target of 82% renewables by 2030 and want to bring new green electrons into the grid as soon as possible."

Harnessing the sun to help power Singapore

Sun Cable was formed in 2018 by a team of people based in Singapore and Australia, including current chief executive David Griffin.

In 2019, it revealed a plan to transform Australia, one of the world's biggest miners, into an exporter of renewable energy.

Sun Cable wanted to build a solar farm in outback Northern Territory, which would be large enough to be seen from space, with much of the renewable power it generated to be sent to Singapore.

To do this, Sun Cable wanted to install a large battery network and run a 4,200 kilometre undersea transmission line from a spot near Darwin to the gas-dependent island nation.

Initially, Mr Cannon-Brookes and Mr Forrest appeared to be united on the project's goal to export solar power to Singapore. But the partnership fractured earlier this year.

In a statement early this month, the Energy Market Authority of Singapore (EMA) told ABC News it was in "discussions" with Sun Cable and couldn't discuss them as they were commercially sensitive.

"No agreement has been signed with Sun Cable," a spokesperson said. "And EMA has not made any financial contribution to the project."

Final environmental approvals for the solar farm also haven't been given, and traditional owners need to be consulted about the 12,000 hectares of panels to be erected.

Why did two of Australia's richest men fall out over Sun Cable?

Earlier this year, Mr Forrest's private investment arm Squadron indicated it no longer supported Sun Cable's goal to export solar to Singapore, and would prefer to use the energy it generated for local projects, such as making hydrogen.

Mr Forrest has been a vocal proponent of hydrogen, including for generating so-called green steel.

After the split emerged, Sun Cable was put into administration and up for sale.

As well as Mr Cannon-Brookes's Grok Ventures and Mr Forrest's Squadron, the ABC understands there were several other entities bidding for control of the project.

Final bids closed on May 23.

What does this mean for local supply of solar?

Much of the focus on Sun Cable to date has been on its plan to export power to Singapore to supply up to 15 per cent of the island nation's energy needs.

However, it also planned to supply a chunk of solar energy to the Northern Territory, provisionally reported as around 800 megawatts.

Critical minerals company Tivan signed a non-binding deal with Sun Cable earlier this year, while it was still in administration, to take some of its solar energy in Darwin.

Tivan wants to mine critical minerals in Australia and process some of them at a development precinct proposed by the NT Government at a site in Middle Arm.

Tivan's executive chair Grant Wilson said it hoped to take 200-300MW of solar energy from Sun Cable to power its proposed Middle Arm site.

"We're happy to work with either party," Mr Wilson said ahead of the announcement, but added the deal may need to be re-negotiated if there was a change of management or board structure.

Mr Wilson said if Friday's decision meant they could not access Sun Cable's solar power, they would seek to get renewable energy elsewhere to offset production, and even floated the idea of accessing electricity from beleaguered NT solar farms not yet connected to the grid.

"It's a decision for Sun Cable. We just want to see the project go ahead," he said.

"Because Sun Cable is such a mega project, they're able to offer the lowest price [for the solar] because of the economies of scale."

Source: ABC News

Carpentaria-2H flow testing complete following continued strong gas rates

• Carpentaria-2H (“C-2H”) has produced a total of 323 Terajoules (“TJ”) (281 mmscf) over 127 days

• Gas composition has remained consistent with high calorific value and extremely low CO2

• This equates to a normalized rate of 2.75 TJ (2.4 mmscf) per day per 1,000 metres for the entire test period

• The post-soak 2023 IP30 is now confirmed at 3.5 TJ (3.0 mmscf) per day per 1,000 metres following updated gas composition analysis

• C-2H has been shut-in for availability as a future gas producer

• Carpentaria-3H (“C-3H”) will be reopened for flow testing once the soak period concludes

• Development planning for pilot project final investment decision continues. Multiple parties are expressing strong interest in purchasing Empire’s Beetaloo gas in both the pilot phase and full development phase

• NSAI updated resources report on track to be released prior to 30 May 2023 AGM

To view full ASX announcement, click here

Beetaloo Regional Reference Group – Meeting 8 communique Meeting date: Tuesday 16 May 2023 Attendees: nominated representatives of Northern Land Council, Katherine Town Council, and Department of Environment, Parks and Water Security (DEPWS) staff. Apologies: Sunrise Health, Territory Resource Services Association, Territory Natural Resource Management, Sturt Plateau Best Practice Group, NT Farmers Association, Barkly Regional Council, Roper Gulf Council. Purpose The Beetaloo Regional Reference Group (BRRG) is a consultative forum for communication with key regional stakeholders based in the Beetaloo for guiding and informing the Strategic Regional Environmental and Baseline Assessment (SREBA) studies within the Beetaloo Region. Progress and updates The SREBA was released to the public in April 2023. All SREBA reports and data are now available at depws.nt.gov.au/sreba SREBA teams are available to answer any questions and queries about the information and data. SREBA teams will continue to engage with stakeholders to share the findings of the studies until the end of June 2023. This was the final meeting of the BBRG. Topics of discussion Members discussed mechanisms for sharing SREBA information with stakeholders and its many applications. All the SREBA domain research presentations and recent webinar can be found here. We thank the members of the BRRG for their advice and participation.

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

The Northern Territory Government is working with industry to develop a carbon capture and storage common-user hub at Middle Arm.

The establishment of this hub will see emissions from current and future natural gas processing operations support the creation of new low emissions industries that use carbon dioxide and clean hydrogen as feedstocks.

A New CSIRO report highlights opportunity for carbon dioxide (CO₂₎ utilisation to support low-emission manufacturing in the Northern Territory, as part of the Northern Territory Low Emission Hub business case.

The Northern Territory could turn waste carbon dioxide into commodity products by integrating CO₂ utilisation technologies into local hub developments, according to a new report by Australia’s national science agency, CSIRO.

CO₂ utilisation is the process of using CO₂ captured from industrial emissions or directly from the atmosphere to manufacture products. The Opportunities for CO₂ Utilisation in the Northern Territory report explores five CO₂ utilisation opportunities that can enable low-emission manufacturing and generate value for the Territory’s economy. The report builds on CSIRO’s CO₂ Utilisation Roadmap, published in 2021.

The NT’s existing liquefied natural gas industry, export links with the Asia-Pacific region and high renewable electricity potential mean it is well positioned to create valuable CO₂-derived products and support industry’s decarbonisation efforts.

The report explores opportunities to manufacture methanol, jet fuel, urea, methane and mineral carbonates in the NT using captured CO₂.

The development of a hub with shared carbon capture utilisation and storage (CCUS) and hydrogen production infrastructure can support the deployment and scale-up of CO₂ utilisation opportunities.

A large scale CO2 storage hub will enable development of low emissions industries, advanced manufacturing industries, potential for a significant emissions management hub in the wider region, including south-east Asia.

To view the report visit https://www.csiro.au/ntco2report

Quotes attributed to Chief Minister Natasha Fyles:

“The Territory is rapidly emerging as a key player when it comes to the global supply chains, and new technologies needed for energy transition.

“We have always said the core component of the Middle Arm development is sustainability and will include renewable energy. We are creating new jobs for Territorians in existing and emerging sectors, including low-emissions energy, advanced manufacturing, and low-emissions minerals processing.

“The creation of a Carbon Capture and Storage industry in the Territory will allow us to develop more projects, as we work towards clean, green energy.”

Quotes attributed to the Minister for Mining and Industry, Nicole Manison:

“Our Government is working with CSIRO, INPEX, Santos and other big industry players to establish a carbon capture and storage common-user hub at Middle Arm.

“We are making sure we are creating an industry which will be able to provide crucial energy security to Australia and the region, into the future.

Carbon capture and storage is vital to achieving net zero emissions, which is why the Northern Territory Government has also commissioned “Carbon Capture and Storage Hub Study”, undertaken by the Global Carbon Capture and Storage Institute, in addition to this report.”

Quotes attributed to the CSIRO Dr Andrew Ross:

“The potential near and long-term role of Carbon Capture and Utilisation within a Northern Territory Low Emission Hub is an important input to understanding the interaction between different industries in the context of a low emissions industrial ecosystem”

Source: NT Government newsroom

The Territory Labor Government is investing in clean, affordable and reliable energy for Territorians.

A milestone has been reached for the Territory’s $45 million big battery – known as the Darwin-Katherine Battery Energy Storage System (DK BESS) – with the successful installation of all batteries and progression to the first stages of pre-commissioning.

Once commissioned, the 35MVA battery is intended to replace some gas-fired generation at the Channel Island Power Station and strengthen the Darwin-Katherine system to support increased solar. It will reduce Territory carbon emissions by about 58,000 tonnes a year. 

A major part of the Darwin-Katherine Electricity System Plan, the DK BESS is forecast to deliver cost savings of around $9.8 million per year, paying for itself in about five years from connection to the grid. 

Currently, all 192 batteries, each weighing 3.5 tonnes, have been installed at the DK BESS site adjacent to Channel Island. A temporary power supply has been established for pre-commissioning testing on the eight DK BESS Hitachi Energy modules, each comprising a bank of batteries, a set of inverters and a step-up transformer. Using the temporary power supply in combination with an AC/DC power converter, the battery modules will be charged and discharged to test all their functions before being connected to the 11kV switch room.  

Network connected commissioning of the big battery is scheduled to commence in late 2023 and it is expected to be fully commissioned and online in the 2023-24 financial year.  

Quotes attributable to Chief Minister, Natasha Fyles: 

“Renewable energy makes economic and environmental sense.

“The Territory Labor Government is investing in DK BESS as an important step towards achieving 50 per cent renewable power by 2030 and net zero emissions by 2050.    

“Ensuring Territorians have access to affordable electricity is a priority for our Government, as is driving that shift to renewable energy.”

Quotes attributable to Minister for Renewables and Energy, Selena Uibo: 

“We congratulate Territory Generation and Hitachi Energy upon the successful installation of all batteries and progression to pre-commissioning stage. 

“This battery energy storage system will put about 35MW into the Darwin system, which means we can reduce the gas turbines spinning and reduce the amount of fossil fuels being burnt.

“When operating the big battery is expected to support system security for about 150,000 homes between Darwin and Katherine and it will provide Territorians with greater system reliability and cleaner, green energy.”

Quotes attributable to Territory Generation CEO, Gerhard Laubscher:  

“The successful installation of all batteries and progression to pre-commissioning is a significant step forward for the DK BESS. 

“We recognise commissioning is a complex and time intensive process, and we are working closely with all stakeholders to support the fastest possible progression of these activities. 

“The DK BESS is key to unlocking flexibility in our generation fleet. Once commissioned, it will be online continuously, helping to stabilise the impacts of solar and support the integration of more into the Darwin-Katherine grid.” 

Quotes attributable to Hitachi Energy Country Managing Director, Bernard Norton:

“This is a significant milestone in the development of the advanced Hitachi Energy battery energy storage solution that will ensure full utilisation of solar energy generation and less reliance on fossil fuels across the Darwin-Katherine network.

“Through this partnership approach with Territory Generation, Hitachi Energy is helping to solve the challenge of integrating intermittent renewable energy generation and accelerating the transition towards a carbon-neutral energy future for all.”

Source: NT Government Newsroom

The Territory Labor Government is developing the highly prospective Beetaloo Sub-basin onshore gas resource in the Northern Territory, to provide energy security that will support the transition to renewable energy and relieve current supply shortages.

Deputy Chief Minister, Nicole Manison will attend the Australian Petroleum Production and Exploration Association (APPEA) conference in Adelaide to raise the profile of the Northern Territory as an attractive destination for investment.

This conference is a key opportunity to promote the development of the Northern Territory’s on-shore gas industry, and engage directly with key stakeholders to facilitate the growth of the Beetaloo in step with the Territory’s competitive advantages to create jobs.

This year the conference will highlight and discuss real solutions to address energy security, achieving net zero emissions and evolving technology for decarbonisation.

The Northern Territory’s Department of Industry, Tourism and Trade will lead a presentation on the Northern Territory’s Carbon Capture and Storage Hub, which includes a virtual reality experience of the Middle Arm Sustainable Development Precinct.

Quotes attributable to Deputy Chief Minister, Nicole Manison:

“The Northern Territory is on the cusp of a new economic era as we power towards a $40 billion economy by 2030, and our world class energy resources will help achieve this target.

We have significant potential to be a trusted, reliable gas supplier that will be central to secure and affordable energy both nationally and internationally, and the APPEA conference provides opportunities to develop the industry and increase investment in the Territory.

It is critical that we maintain and accelerate this growth as it has the potential to benefit all Territorians, and the Northern Territory Government will continue to ensure we are the best and easiest place to do business to give industry certainty moving forward.”

Source: NT Government Newsroom

Scientific Inquiry into Hydraulic Fracturing Final Implementation Report

Government has released its Final Implementation Report in response to the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Over the last 4 years, the Territory Government has been working to implement the 135 recommendations from Justice Rachel Pepper’s Scientific Inquiry into Hydraulic Fracturing by developing multiple safeguards for the regulation and monitoring of an onshore petroleum industry.

The Final Implementation Report and relevant supporting information can be found on the Onshore Gas website: Final Implementation Report.

This work has been overseen by an Independent Overseer, Dr David Ritchie, who was a member of the original Inquiry panel, operating at arm’s length from government.

Dr Ritchie has provided his final advice to Government on implementation. This advice can also be found on the Onshore Gas website: Independent oversight.

The role of Independent Overseer has now officially ceased at the completion of implementation.

A significant part of the Government’s response to ensuring evidence-based decision making has been the Strategic Regional Environmental and Baseline Assessment (SREBA), which is the most comprehensive series of regional scientific studies ever conducted in the Northern Territory. These studies can be found on the Department of Environment, Parks and Water Security website: SREBA Strategic Regional Environmental and Baseline Assessment.

NT Government will now move its focus from system reform to ongoing regulation, monitoring and evaluation of the onshore petroleum industry.

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