Industry News

Santos, as operator of the Barossa joint venture, today announced a final investment decision (FID) has been taken to proceed with the Darwin Pipeline Duplication Project, located offshore the Northern Territory.

The decision will extend the Barossa Gas Export Pipeline to the Santos-operated Darwin LNG (DLNG) facility and allow for the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate carbon capture and storage (CCS) options.

Gas from the Barossa field, located 300 kilometres north of Darwin, is intended to replace the current supply from the Bayu-Undan facility located in Timor-Leste. First gas production at DLNG using Barossa gas is targeted for the first half of 2025.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the DLNG Life Extension, Darwin Pipeline Duplication and Bayu-Undan CCS projects would promote sustainable development and jobs growth in the Northern Territory and Timor-Leste, while building momentum for a whole of region carbon reduction solution.

“Taking FID on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready,” Mr Gallagher said.

“The Bayu-Undan CCS project has the potential to capture and store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent of Australia’s carbon emissions each year from other projects, customers and other hard to abate industries and has the potential to be the largest CCS project in the world.”

Adding the Darwin Pipeline Duplication project is estimated to increase Santos’ share of capital expenditure for the Barossa project by approximately US$311 million.

The Barossa joint venture has agreed with the DLNG joint venture partners to terminate the toll arrangement for using the original Bayu-Undan to DLNG pipeline, reducing operating expenses for Barossa.

Work is scheduled to commence on the Darwin Pipeline Duplication project in 2023, subject to Commonwealth and NT regulatory approvals.

A final investment decision on Bayu-Undan CCS is targeted for 2023. Santos continues to work with Australian and Timor-Leste governments to establish regulatory frameworks to support future CCS operations.

Ends.

This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.

Source: Santos

The 2022 Offshore Petroleum Exploration Acreage Release has been announced by the Australian Government, with approximately 46,758 square kilometres of new acreage available for exploration.

The release in Commonwealth offshore waters comprises 10 areas across the Bonaparte, Browse, Carnarvon, and Gippsland basins off the coasts of the Northern Territory, Western Australia, Victoria, and the Ashmore and Cartier Islands.

Minister for Resources and Northern Australia Madeleine King said the 2022 petroleum acreage release would play an important role in securing future energy supplies.

“The annual release of areas for offshore petroleum exploration supports ongoing investment in the nation’s petroleum sector, which is vital for the economy and meeting the energy needs of Australians,” Minister King said.

“At the same time as we strive to reduce emissions it must be emphasised that continued exploration for oil and gas in Commonwealth waters is central to alleviating future domestic gas shortfalls.”

Gas will play a key role as a transition fuel as Australia works to reach net zero emissions by 2050.

“Australia’s energy sector also continues to support international energy security, particularly during the global turbulence caused largely by Russia’s invasion of Ukraine,” Minister King said.

The 2022 Offshore Petroleum Exploration Acreage Release focuses on known oil and gas provinces with accessible infrastructure. This will ensure major projects maintain steady supplies into the future and will lower costs of development in a capital constrained world.

All areas in the release are based on industry nominations and were subject to a public consultation process. All areas are available for work-program bidding. Bidding will close on Thursday 2 March 2023.

Maps for the release, public consultation comments and information on the bidding process can be found at the Department of Industry, Science and Resources’ 2022 Offshore Petroleum Exploration Acreage Release web page.

Source: Petroleum Australia 

Preserving Darwin Harbour’s environmental value for generations to come is an important part of meeting the sustainable objectives of the Middle Arm Sustainable Development Precinct.

The Northern Territory Government is working to transform Middle Arm into a sustainable ‘development ready’ industrial precinct.

The precinct will be a master planned area with a focus on low emission hydrocarbons, green hydrogen, advanced manufacturing, carbon capture and storage and minerals processing.

The Department of Infrastructure, Planning and Logistics (DIPL) is leading the planning and design process and environmental approvals. Protecting the environment is critical to planning and design.

The precinct is positioned to create jobs, grow manufacturing and strengthen our economy while adhering to robust sustainability principles.

The benefits of a master planned precinct include:

• co-locating similar industries in one place rather than spread around the harbour
• an overarching environmental performance framework
• shared infrastructure rather than each project duplicating
• better certainty for the community about potential development over the next 50 years
• assessing and managing cumulative impacts on the environment, culture, economy and society rather than incremental consideration project by project
• greater certainty for investors and proponents about what is appropriate and acceptable at Middle Arm
• strategic planning for the pipeline of jobs, procurement, social infrastructure and land release.

DIPL is committed to providing regular updates on the project and engaging with stakeholders and the community.

To find out more visit dipl.nt.gov/projects

Preparations for the Territory’s Big Battery are taking shape with earthworks complete and installation expected to commence later this year.

The $45m Channel Island power station battery project, known as Darwin-Katherine Battery Energy Storage System (DK BESS), is a big part of government plans to achieve 50 per cent renewable energy usage across the Territory by 2030 and zero emissions by 2050.

The 35MVA battery is expected to pay for itself within five years by delivering cost savings close to $10 million a year for both Territorians and the government.

The government says it will reduce emissions by about 58,000 tonnes a year.

The battery will stabilise the Northern Territory’s power grid.

Territory Generation chief executive Gerhard Laubscher said BESS promoted flexibility in the market.

“The Darwin-Katherine battery not only delivers on a portion of the government’s Darwin-Katherine Electricity System Plan but is also key to unlocking flexibility in our generation fleet to better manage the increasing impacts of solar on the system,” Mr Laubscher said.

Global technology leader Hitachi Energy has been ­selected to deliver the battery system.

Darwin-Katherine BESS will provide energy to 150,000 Territorians, about 15 per cent of whom have roof-top solar panels.

The BESS unlocks additional capacity for households to connect their rooftop PV or for industry to invest into lower cost solar systems for commercial and industrial operations.

Chief Minister Natasha Fyles said the Territory was Australia’s solar leader.

“The cutting-edge technology in our Battery Energy Storage System will reinforce the Northern Territory as the solar capital of Australia. It will store power and be the backbone of the Darwin to Katherine Electricity grid,” Ms Fyles said.

“The Territory Labor government is backing Territorians, solar and lower prices to get it done.”

Renewables and Energy Minister Selena Uibo said the Territory had a renewables ­future

“This is why we are investing now in the BESS and hydrogen powered generators so we can have clean and efficient energy to help reach our renewables and net zero emission targets,” she said.

In July, the NT Utilities Commission’s outlook report advised of increased risks of blackouts without urgent capital expenditure.

Source: NT News

INPEX Browse E&P Pty Ltd (“INPEX”) today announced it has been jointly awarded a greenhouse gas storage assessment permit (title G-7-AP) with TotalEnergies CCS Australia Pty Ltd and Woodside Energy Ltd, in a joint venture known as Bonaparte CCS Assessment.

The permit was awarded following Australia’s 2021 Offshore Greenhouse Gas Storage Acreage Release and is in the Bonaparte Basin off the northwestern coast of the Northern Territory of Australia – an area considered to be promising for geological storage of carbon dioxide in service of carbon capture and storage (CCS) activities. 

INPEX is pleased to pursue evaluation and appraisal work in cooperation with the Bonaparte CCS Assessment Joint Venture participants, holding a 53 per cent participating interest as Operator.

Supporting quotes

Minister for Resources and Minister for Northern Australia the Hon Madeleine King MP

• Since becoming Minister I have emphasised the role the resources sector will play in Australia’s transition to net zero. 
• The International Energy Agency has made it clear that the world won’t get to net zero by 2050 without CCUS. This offshore acreage has the potential to contribute to that important goal.

INPEX President Director Australia Hitoshi Okawa

• Acquiring this permit provides an exciting opportunity to prove up a large-scale carbon storage site in northern Australia, with the potential to become one of the largest CCS projects in the world.
• INPEX believes industry and government working together is a powerful enabler for responsible energy development. We are extremely appreciative of the Australian and Japanese governments’ support, as we work towards a cleaner energy future.
• We are proudly contributing to Australia’s lower carbon future, as mapped out in our INPEX Vision@2022 – and as Operator of both Bonaparte CCS Assessment and Ichthys joint ventures, INPEX is ideally placed to champion CCS activities in northern Australia.

TotalEnergies Senior Vice President Asia Pacific for Exploration & Production and Renewables Julien Pouget

• The award of this promising greenhouse gas storage assessment permit is fully in line with our strategy to provide more energy with lower emissions and our ambition to achieve net zero by 2050 together with society.
• As partner in both Ichthys LNG and Bonaparte CCS Assessment joint ventures, TotalEnergies is well positioned to contribute to a low carbon LNG production in Australia.

Woodside Energy CEO Meg O’Neill

• Woodside welcomes the award of the permit as an important milestone for the Joint Venture, as it assesses the CCS potential of the permit area.
• For Woodside, CCS will be an important addition to our portfolio of carbon management options, as we work towards our own aspiration of net zero by 2050.

About INPEX: INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and is currently involved in projects across
multiple continents, including Ichthys LNG in Australia as Operator. By making its energy business cleaner, while expanding its five net-zero business areas, INPEX aims to provide a stable supply of diverse and clean energy sources including natural gas, oil, hydrogen and renewables as a pioneer in energy transformation. For more information, visit www.inpex.co.jp/english/index.html or www.inpex.com.au/

About TotalEnergies: TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

About Woodside Energy: We provide energy which Australia and the world needs to heat and cool homes, keep lights on and enable industry. We have a reputation for safe and reliable operations. We aim to thrive through the energy transition by building a low-cost, lower-carbon, profitable, resilient and diversified portfolio. Our hydrocarbon business is complemented by a growing portfolio of hydrogen, ammonia and solar opportunities in Australia and internationally. Our new energy opportunities include the proposed hydrogen and ammonia projects H2Perth and H2TAS in Australia and the proposed hydrogen project H2OK in North America.

Source: INPEX

Phase 2 of the Northern Territory’s Global Worker Attraction Campaign called ‘Make it to the Top’ and is now live until 31 December.

The campaign targets skilled and semi-skilled workers aged between 18 and 45 in Australia, New Zealand, London, Singapore, Japan, South Korea, Switzerland, Italy, Vietnam, South Africa, Taiwan, Indonesia, Colombia, Brazil, Ireland and the Philippines.

The digital campaign is running across Seek, CareerOne, Facebook and Instagram.

The following industries will be targeted based off industry feedback and data received from Seek during phase 1 of our Global Worker Attraction Campaign:

• administration and office support
• community services and development
• construction
• education and training
• engineering
• healthcare and medical
• hospitality and tourism
• manufacturing, transport and logistics
• mining, resources and energy
• retails and consumer products
• trades and services.

How to get involved

Energy Club NT members can get involved by:

• loading their Territory jobs on Seek and CareerOne
• downloading assets from the worker attraction toolkit to entice skilled workers from interstate and overseas to move to the Territory
• including the hashtag #movetotheTerritory on their social media posts
• including theterritory.com.au on their job advertising, website and/or business signage so potential employees can learn more about living and working in the Territory.

Key links

Check out the worker attraction toolkit assets.

View the Global Worker Attraction Campaign on The Territory website.

For any queries, please email workforceattractionnt@nt.gov.au

Woodside Energy Group and INPEX have been awarded two of Australia’s first offshore greenhouse gas storage permits, with the titles regulator signing off on the initial applications this week. 

The permits are for a term of six years. 

Woodside's G-8-AP is in the Browse Basin and expires in August, 2028. It covers 3,476 square kilometres across 42 blocks and is between retention leases WA-28-R and WA-31-R. 

It lies directly on top of its Browse fields, which hold 10% CO2.

he project to send gas 900 kilometres to the North West Shelf facility to use as LNG backfill has been paused since 2020 but since the Russian invasion of Ukraine and changing world circumstances, has been back on the table. 

CEO Meg O'Neill told a press conference at the APPEA conference in May CCS would be a part of the project from the get go. 

The company must undertake subsurface geoscience and engineering studies by 2025 and a risk assessment for legacy wells in the area. It must acquire 250sq.km of new 3D seismic between 2025 and 2026 at an estimated cost of $6.5 million and complete well design and planning by 2028. 

INPEX takes its G-7-AP, which is in the Bonaparte Basin and expires in August 2028. It is spread across 27,500sq.km and covers 348 blocks.

INPEX is operator but shares the block with Woodside and France's TotalEnergies. In addition to seismic acquisition the partners must drill two appraisal wells in the six-year work program at a cost of an estimated $105 million by 2025. 

The total work program is estimated to cost $159 million and includes large amounts of geological and reservoir modelling. 

The permit is close to the Petrel Sub-basin, the Bayu-Undan fields, the Barossa field and INPEX's own Ichthys. 

The company has pledged to build a CCS hub in Darwin to capture emissions and also suggested it may join Santos' ambitious Bayu Undan proposition, which would use the depleted reservoirs to store up to 10 million tonnes a year of CO2 some 560 kilometres offshore Darwin. 

Source: Energy News Bulletin

Australia’s oil and gas industry says it will work constructively with the Federal Government on its emissions safeguard mechanism as part of the sector’s commitment to net zero by 2050.

The Australian Petroleum Production & Exploration Association (APPEA) today welcomed the release of the Safeguard Mechanism Reforms consultation paper.

APPEA Chief Executive Samantha McCulloch said: “The oil and gas industry is already spending billions of dollars on decarbonisation and renewable energy initiatives and is strongly committed to reducing greenhouse gas emissions economy-wide to net zero by 2050.

“Gas will be central to a cleaner energy future given its role stabilising renewables, replacing coal, supporting manufacturing, making everyday products and as a feedstock for hydrogen. The expertise of the industry will also be critical to deliver key decarbonisation technologies such as carbon capture and storage.

“We’ve always worked with regulators and governments throughout Australia on emissions reduction policy and frameworks and will do so again to ensure both reduced emissions and ongoing international competitiveness.”

It is important to acknowledge the Government’s commitment to provide tailored treatment for emissions-intensive, trade-exposed industries based on the principle of comparative impact.

Ms McCulloch said: “Australia’s LNG industry is one of the country’s most trade-exposed and operates in a highly competitive global market in which it’s one of the global leaders – with export earnings expected to hit another record of over $80 billion this financial year.

“The value of these exports to Australians was seen recently when the Queensland Budget forecast petroleum royalties to more than double – helping fund vital public services and infrastructure like hospitals and schools.

“The Federal Government’s commitment to provide tailored treatment to ensure that export-focused businesses are not competitively disadvantaged is important to help ensure the nation decarbonises while keeping our economy strong and resilient.”

Source: APPEA

ASX Announcement 

Tanumbirini 2H and 3H flow rates increase to 4.3 & 7.4 mmscfd following installation of production tubing (normalised to a 1,000-metre lateral)

The Tanumbirini 2H (T2H) and Tanumbirini 3H (T3H) wells in EP 161 (Santos 75% and operator, Tamboran 25%) are currently flowing at 40% and 150% higher eight-day average flow rates, respectively, when compared to corresponding rates in January 2022.

The T3H well peaked at 9.1 million standard cubic feet per day (mmscfd) and is flowing at an eight-day average rate of 4.4 mmscfd over a 600-metre horizontal section (normalised at 7.4 mmscfd over 1,000-metres).

The T2H well peaked at 4.0 mmscfd and has an eight-day average rate of 2.8 mmscfd over a 660-metre horizontal section (normalised at 4.3 mmscfd over 1,000-metres).

Flow rates from the T3H well are the highest sustained flows seen from any well in the Beetaloo Sub-basin to date, reflecting the high productivity of Tamboran’s deep ‘Core’ Beetaloo acreage.

These flow rates highlight the potential of Tamboran’s 100% owned and operated Maverick 1H (M1H) well, expected to commence drilling in September 2022, which has been designed with an optimised and modern US fracture simulation program.

The forward plan is to continue flow testing both the T2H and T3H wells to gather further information on the Mid-Velkerri “B Shale” formation

Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:

“These results provide us with much increased confidence in delivering commercial rates from the upcoming M1H well within our 100 per cent owned and operated EP 136 permit, which is expected to spud in early September 2022. The M1H well has been designed with optimised fracture stimulation, with learning taken from the drilling, stimulation and flow results from the T2H and T3H wells. This will incorporate an optimised 5 ½-inch production casing well design over a planned 1,000-metre (3,280 foot) horizontal section and will include up to 20 fracture stimulated stages

“The T2H and T3H wells will continue to be flow tested over the next few months and we look forward to providing additional details to the market following 30 days of production.”

Read full announcement here  

Source: Tamboran Resources

The Territory Labor Government and international renewable energy company, Total Eren, have today signed a Memorandum of Understanding (MoU), to develop a new green hydrogen project in Darwin.

The MoU frames how Government and Total Eren will work together to progress the Darwin H2 Hub.

The Darwin H2 Hub has the potential to create more than 2,000 jobs during construction and 175 ongoing during its operation and help to fast-track a net zero economy. 

Based in Darwin, the H2 Hub will be a renewable energy generation and hydrogen production plant which can assist domestic and international companies to decarbonise through the use of green hydrogen and to facilitate new industries in a net-zero economy.

Total Eren is a global renewable energy producer, headquartered in Paris with over 3.5 GW of wind and solar power plants and regional offices in the Asia-Pacific region located across Australia (Melbourne, Adelaide and Brisbane), Indonesia, Singapore, Philippines, South Korea, Cambodia and Vietnam.

Plans for the Darwin H2 Hub comprise of more than 2GW of solar PV generation on 4000ha of land providing energy for a 1GW hydrogen electrolyser to produce more than 80,000 tonnes of hydrogen per annum.

Green hydrogen is an important energy vector that will support the transition of economies worldwide as well as the Territory economy, this is why Budget 22 allocates $5.01 million over four years for accelerated hydrogen industry development.

 Quotes attributed to Chief Minister Natasha Fyles:

“This project is another great opportunity for the Territory to create jobs in this new clean energy sector and significantly contribute to the Territory’s drive to reduce greenhouse gas emissions.

“With our abundant solar resources and our strategic location to support exports into the Indo-Pacific, the production of green hydrogen is a key opportunity for the Territory to address the growing demand for this green energy globally.

“The signing of this MoU will help position the Territory as the next Australian home of renewable hydrogen production.”

“We are excited to partner with Total Eren on this significant renewable project”

Quotes from Total Eren Australia’s Managing Director, Kam Ho:

”Total Eren as a leader in renewable energy is excited to be present in the Northern Territory through the development of the proposed Darwin H2 Hub.

Our plan is to accelerate the development of the project to supply green hydrogen and also the opportunity to provide renewable energy which supports the decarbonisation plans for energy-intensive industries in the Territory. Total Eren appreciates the Territory’s support on the Darwin H2 Hub and we look forward to working in partnership with the Territory to realise our vision in a net-zero economy.”

Source: Northern Territory Government Newsroom