Industry News

Hydraulic Fracturing Implementation Progress Update Nov 2021 to Apr 2022

This progress update provides detail on the status of implementation from 1 November 2021 to 30 April 2022. The Inquiry made 135 recommendations, three of which were separated to assist implementation planning, resulting in 138 recommendations to be reported on.

As at 30 April 2022, 66 of the 138 total recommendations were 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 reporting period and next steps align 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.

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

Independent Oversight of the Tenth 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 Overseer to remain at arms-length from day-to-day decisions and processes relating to implementation.

Dr David Ritchie, has provided comment on the progress of implementation outlined in the latest six-monthly update.

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

Read Dr Ritchie’s full advice here.

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

What’s next?

Implementation of remaining recommendations is in progress and the NT Government continues to work on satisfactorily completing recommendations by the end of 2022.

Want to find out more?

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

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

ASX Announcement
Successful Commencement of Carpentaria-2H Hydraulic Stimulation

Empire Energy is pleased to advise that the fracture stimulation of Carpentaria-2H (“C-2H”) has commenced. C-2H is located in Empire’s 100% owned and operated EP187 Beetaloo Sub-basin acreage. The first of 25 planned stages across the horizontal section has been successfully pumped within the Velkerri B Shale.

To read the full ASX Announcement click here. 

Engineering firm Worley has won a contract from gas major Santos for professional services to support the Bayu-Undan carbon capture and storage project offshore northern Australia in the Timor Sea.

Santos first announced it would convert the Bayu-Undan field reservoirs into a CCS project in March this year.

The field will cease commercial production mid-next year and has capacity to store 10 million tonnes of CO2 per year. The project will take CO2 from the nearby Barossa project and potentially other fields. Barossa has a relatively high CO2 content at about 20%.

Santos has already committed to storing CO2 from other third parties including JERA, INPEX and Tokyo Gas.

Worley announced it had been awarded front-end engineering and design work for the project.

This includes the re-purposing of the Bayu-Undan facility and the offshore section of the gas export pipeline which will be converted into a CO2 injection pipeline.

Worley chief Chris Ashton said he was excited to strengthen the firm's relationship with Santos.

"This project is one of the ways we are helping our customers to decarbonise and re-purpose existing assets as we deliver a more sustainable world," Ashton said.

The FEED work will be executed from Worley's Perth office with support from global teams.

Source: Energy News Bulletin

Do you want to establish or expand your exporting capabilities?

Eligible Territory businesses can apply now for a Global Trade Scheme grant.

The program is divided into three streams, each offering different levels of support depending on where you are at in your export journey.

Each stream is based on a 50:50 co-contribution basis:

Stream 1

• Grants of up to $3,000 to assist businesses to become export ready.

Stream 2

• Grants of up to $10,000 to assist export-ready capable Territory companies to grow existing and enter new export markets.

Stream 3

• Grants of up to $50,000 to assist export-capable Territory companies to grow existing and enter new export markets through a cluster or industry association project.

Grants will remain open all year round or until grant funding is exhausted.

For more information and to apply: www.nt.gov.au/global-trade-scheme

Source: Department of Industry, Tourism and Trade

Wood has been awarded the role of Owner’s Team by the Australian Government, with responsibility for overseeing the first decommissioning phase of the Northern Endeavour Floating Production Storage and Offtake (FPSO) facility in the Timor Sea.

Working on behalf of the Australian Government, Wood will work closely with the Department of Industry, Science, Energy & Resources (DISER) and contractors to ensure the safe, efficient, and responsible initial phase of this critical decommissioning scope. This is the first time the government has selected a partner in this type of contract and will be key to building momentum in the country’s growing decommissioning market.

Ralph Ellis, Wood’s President of Operations across the Asia Pacific region, comments: “The responsible decommissioning of the Northern Endeavour FPSO is of great national interest, with safety, cost, and sustainability in sharp focus throughout.

“We are proud to have been selected by the Australian Government to represent their interests in the first phase of the field’s decommissioning journey. As Owner’s Team, we will leverage our unrivalled offshore decommissioning expertise garnered in mature basins across the world to support the successful delivery of this critical scope of work.

“We look forward to working closely with both DISER and the lead contractor on this important project.”

The Northern Endeavour is a 274m long FPSO, permanently moored between the Laminaria and Corallina oilfields, approximately 550km northwest of Darwin in the Timor Sea. Production began in 1999 and peaked at 170,000 barrels of oil per day.

Source: Wood

THE Northern Territory Utilities Commission has delivered a stark warning that blackouts could become common without investment in the ageing electricity grid.

Roughly 90% of the electricity generated in the Top End comes from the Blacktip gasfield operated by Eni. The problem is not supply, but infrastructure and the fast energy transition, the Commission warned.

Ageing poles and wires, and an unstable grid now being overwhelmed by solar power poses the biggest threat to stable electricity. 

The Commission found the displacement of gas and diesel generation by solar would only increase but the Territory's power systems were too small, isolated and lacking in diversity of technologies to cope.

The Territory government has ambitions to reach 50% renewable energy by 2030.

"System electricity consumption further decreased in 2020-21 partly due to increases in distributed PV, that is, residential and commercial rooftop solar PV systems," the electricity outlook report said.

"This trend is forecast to continue over the outlook period, although some new industrial loads are forecast to reduce the rate of decline."

Two years ago the Commission recommended the government mitigate emerging risks in the grid, however little has been done.

"Despite increased government and industry activity, particularly in terms of planning, the Commission considers limited progress has been made."

It warned that three generators at the Katherine Power Station would shutter soon, along with six large generators at Channel Island Power Station.

The Commission urged the government to accelerate market reform programs and invest in essential system services. 

"Based on the business-as-usual scenario, shortfalls are also forecast for generation

capacity and essential system services, leading to an increased risk of power outages," the Commission said.

"These shortfalls are expected as early as 2026-27 and 2027-28 in Alice Springs and Darwin‑Katherine, respectively."

Source: Energy News Bulletin

Funding available for unique solutions to address Territory workforce shortages

Territory business and industry experiencing critical workforce shortages can access support under the Flexible Workforce Solutions Fund.

This is a great opportunity to collaborate on projects and activities to help attract and retain the skilled workforce you need.

Grants of up to $200,000 are available to consortiums on a 25:75 co-contribution basis.

Eligible projects and activities include:

• regional industry workforce solutions
• seasonal workforce strategies
• leveraging new technology or innovation
• delivery of direct, in-country worker recruitment services

The Flexible Workforce Solutions Fund is an initiative under the Territory Governments $12.8 million Workforce Package which was established to address critical workforce shortages in the Territory.

Expressions of interest for the Flexible Workforce Solutions Fund are now open.

Businesses and peak industry bodies can submit their expression of interest via Grants NT.

As part of the registration process, proposed projects must also be submitted.

Expressions of Interest for round one funding will close on 15 August 2022.

For more information visit: www.nt.gov.au/workforce-solutions

Generation Licences issued and surrendered – Eni Australia Limited

The Commission has issued three generation licences to Eni Australia Limited (the agent). Each licence is held jointly with another licensee (the principal).

The first licence is held jointly with Eni New Energy Katherine Pty Ltd for the Katherine Solar power station. The second licence is held jointly with Eni New Energy Batchelor Pty Ltd for the Bachelor Solar Farm power station. The third licence is held jointly with Eni New Energy Manton Dam Pty Ltd for the Manton Dam Solar Farm power station.

The generation licences allow the licensees to generate electricity at the electricity generating plants described in the licences and to sell and retail the electricity to other electricity entities holding a retail or generation licence.

In addition to the above, the Commission received written notice from Eni Australia Limited on 17 May 2022 that it intended to surrender its generation licence, originally issued on 1 November 2018, subsequent to and subject to the issue of the new generation licences, which apply to the same power stations. The Commission accepted the request to surrender the licence and has removed the licence from the Commission’s register of licences on issue.

Source: Utilities Commission of Northern Territory

Utilities Commission 2022-23 Priorities released

The Commission has published its 2022-23 Priorities, which sets out what the Commission will focus on over the next financial year.

The Commission’s 2022-23 Priorities align with its Strategic Plan.

Source: Utilities Commission of the Northern Territory 

Gas will play a crucial role for decades as a stabiliser for the electricity grid in a cleaner energy future, according to a new 30-year roadmap by the national energy market regulator.

The Australian Petroleum Production & Exploration Association (APPEA) today said the Australian Energy Market Operator (AEMO) had confirmed the long and enduring value of natural gas partnering with renewables with the release of its 2022 Integrated System Plan (ISP).

APPEA Acting Chief Executive Damian Dwyer said the roadmap showed the key role of gas as the world decarbonises by citing the mid-2040s as a time when gas would back up electricity largely powered by renewable generation after the retirement of coal-fired power.

“As a sector strongly committed to economy-wide net zero by 2050, the oil and gas industry recognises the growth of renewables and the importance of multiple energy sources working together to ensure the power generation sector can continue to decarbonise,” Mr Dwyer said.

“The plan confirms the central role of gas in that future as a reliable and flexible stabliser for renewable power generation when the wind doesn’t blow and the sun doesn’t shine.

“Coal won’t get you to the goal and this plan details how gas will step up and take over from coal and also be a cleaner source of energy in the grid.”

Mr Dwyer said this firming role was exemplified in the Plan’s modelling showing how gas would be needed during low and high outputs of renewables during peak demand periods.

“Even at a period of high renewable output, AEMO says gas will be required to firm renewables during high demand just after sunset and through the night to cover wind variability,” he said.

Mr Dwyer said the need for rapid gas during recent energy system pressures – when coal outages combined with lower renewable generation – confirmed the importance of gas to electricity.

“Elsewhere outside the electricity market, gas will also play a critical role in the future supporting manufacturing businesses, making everyday products and as a feedstock to hydrogen,” he said.

Source: APPEA

To view this media release as a PDF, please click here