Industry 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

The Northern Territory Government continues to pave the way in improving our roads and transport infrastructure with the most significant investment in the Territory’s history.  

Budget 2023 showcases our 2023-24 road and transport infrastructure program, which runs in partnership with the Australian Government. It will see an investment of $2.24 billion for roads, aerodromes, jetties and barge landings.

Some of the key upgrading and sealing of roads includes:

- Gas industry roads - $214.8 million

- Tanami Road - $178.1 million

- Central Arnhem Road $165.6 million

- Buntine Highway - $114 million

- Carpentaria Highway - $90.4 million

- Tiwi Islands road -$69.3 million

- Kakadu National Park roads - $67.3 million

- Port Keats Road $60.2 million

- Outback Way - $42 million

- Arnhem Highway - $10.7 million

Budget 2023 will also continue to invest in the delivery of the Berrimah Road and Tiger Brennan Overpass with a commitment of $108 million.

The new $415 million NT Strategic Roads Package was announced in 2022, with the Australian Government committing $332 million and the Northern Territory Government contributing $83 million. Works are commencing with a tender already released for construction of the Santa Teresa Road early package. This funding will also see the Mereenie Loop sealed and access to Maningrida, Ramingining and the Milingimbi mainland barge ramps improved.

Sealing Territory roads is a priority for our Government to unlock economic opportunities, whether that’s for pastoralists, miners, tourists or for locals. We want all Territorians to travel safely on our roads.

Quote attributable to Treasurer and Minister for Infrastructure, Planning & Logistics, Eva Lawler:

“Better roads across the Territory means a better economy, it means safer trips to work, and it means more reliable access for regional communities.

“The Territory is leading the way in the roads and transport infrastructure sector and this is backed up by the continuous support from the Commonwealth.

“This is a significant announcement which will enable major growth right across the Territory and is another step towards our goal of a $40 billion economy by 2030.” 

Source: NT Government Newsroom

Highlights

Implementation of the Pepper Inquiry recommendations provides Tamboran certainty to progress development of Beetaloo Basin assets

• The Northern Territory Government’s implementation of all 135 recommendations under the 2018 Scientific Inquiry into Hydraulic Fracturing in the Northern Territory provides Tamboran with confidence to progress its investment in the Beetaloo Basin.

• Development of the Beetaloo Basin is expected to deliver Territorians low reservoir carbon dioxide gas to provide affordable energy at a time where Australian families are experiencing cost of living pressures.

• Significant royalties from onshore gas in the Beetaloo are expected to flow to Traditional Owners and Northern Territory Government.

• Northern Territory Deputy Chief Minister and Minister for Mining and Industry, Nicole Manison and Tamboran’s Managing Director, Joel Riddle, will host a media event in Darwin at 11:00am AEST on Friday 5 May 2023 to welcome the arrival of the Helmerich & Payne (H&P) super spec FlexRig® Flex 3 rig in Australia.

• Refer to media statement on page 3 - Arrival of Helmerich & Payne’s FlexRig® drilling rig in Australia to deliver a step change in drilling efficiency in the Beetaloo Basin

For full ASX announcement and media statement, click here

Source: Tamboran Resources

NT Government finalises Beetaloo regulatory framework providing green light to move to production approvals. 

Alex Underwood, Empire's Managing Director, commented on today's release:   

"We welcome this historic announcement by NT Chief Minister Fyles and Resources Minister Manison. After an extensive process of review and reform, industry participants and their investors now have certainty on how the NT Government will regulate this vital industry.

Empire is committed to meeting the highest operational and environmental standards and collaborating with government, traditional owners, other landholders and the broader community to ensure the benefits of the development of the Beetaloo’s natural resources will be shared across the Northern Territory and in other areas that support that development.

Gas is a critical enabler of the energy transition and an irreplaceable feedstock for many products on which we rely in our modern lives. The Beetaloo’s low CO2 gas will play an important role in providing the NT, Australia and the Asian region energy security for decades.

Building on the encouraging results of our exploration activity over the last four years, we look forward to submitting applications for all required approvals to enable us to move into gas production and the delivery of much-needed new gas supply to the Australian domestic market, and subsequently to increase LNG exports, already the NT’s largest source of foreign income and a significant contributor to Federal Government revenues."

Please click here to read the full announcement.

Santos today announces it has signed four Memoranda of Understanding (MOU) for the proposed storage of carbon dioxide (CO2) emissions from third parties to underpin the initial development of the Bayu-Undan carbon capture and storage (CCS) project, where front end engineering design work is nearing completion.

The four non-binding MOUs for CO2 supply to Bayu-Undan CCS have been executed with potential upstream gas and LNG projects offshore the Northern Territory and in Darwin, and an energy and industrial conglomerate in Korea.

The MOUs indicate demand for CO2 storage at Bayu-Undan CCS could be in excess of 10 million tonnes per annum (Mtpa).

Bayu-Undan CCS ex-Darwin will be a relatively low-cost carbon solution, with costs expected to be well within the Australian Government’s proposed price cap on Australian Carbon Credit Units.

Bayu-Undan CCS has the potential to reduce the absolute emissions and emissions intensity of Australian gas and LNG projects, as well as of other industries in the Northern Territory, by providing safe and permanent CO2 storage in depleted gas reservoirs that previously held gas and condensate in place for tens of millions of years.

Importantly, Bayu-Undan CCS provides a potential Scope 3 emissions solution for Australia’s exports to Asia, with large customers in countries such as Korea looking to capture energy and industrial emissions and ship CO2 to Australia for safe, permanent sequestration deep underground.

While the Bayu-Undan CCS project is located offshore Timor-Leste, Darwin is set to be an important regional hub for CO2 capture, transfer and storage to Bayu-Undan as well as to other potential CCS locations offshore the Northern Territory, which are still in the exploration and feasibility stages.

The International Energy Agency in its recent Australia 2023 Energy Policy Review said, “Australia is well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and support regional emissions reductions.” (Emphasis added)

Santos Managing Director and CEO Kevin Gallagher said Timor-Leste is also well-positioned as a future provider of carbon management services. Santos working with both the Timor-Leste and Australian Governments to bring the Bayu-Undan CCS project to fruition and realise its potential as an important regional decarbonisation project benefiting both nations and our regional trade and investment partners.

Parties to the MOUs will now work cooperatively toward securing binding commitments, including one party looking the opportunity for international CO2 transfer and carbon management services.

Santos Managing Director and CEO Kevin Gallagher said the execution of the MOUs demonstrates the strong demand for Santos’ proposed CCS projects.

“Increased deployment of CCS is critical to achieve the world’s climate goals and executing these MOUs demonstrates the strong underlying demand for CCS and the broad acceptance of CCS as a decarbonisation strategy,” Mr Gallagher said.

The Global CCS Institute’s 2022 update on the status of CCS globally reported earlier this year that, “As of September 2022, the total capacity of CCS projects in development was 244 Mtpa of CO2 – an increase of 44 per cent over the past 12 months.”

Their update confirmed there are now 30 operational CCS projects around the world, storing over 42 million tonnes of CO2 per year.

Mr Gallagher said, “With Bayu-Undan CCS having a proposed pipeline capacity of 10 MTPA from Darwin, these MOUs indicate demand in excess of that capacity.

“With CO2 transport and storage demand only likely to grow, we will continue to work with the Timor-Leste and Australian governments to urgently progress the necessary regulatory and fiscal frameworks and approvals required to support the development of Bayu-Undan CCS.”

The Bayu-Undan CCS project is situated within Santos’ Darwin and Bayu-Undan Hub, part of Santos’ three hub CCS strategy that includes the Moomba CCS project which is under construction and 60 per cent complete. First injection at Moomba CCS is scheduled for 2024.

A final investment decision for Bayu-Undan CCS is targeted for 2025.

For full announcement, click here.

Source: Santos.com