Industry News

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

29 June 2022

The Northern Territory Government has released the NT Infrastructure Strategy 2022 to 2030 and the NT Infrastructure Plan and Pipeline 2022 which build the foundations for a sustainable and diverse $40 billion economy by 2030.

Government’s vision is for infrastructure investment that enables growth of the Territory economy and population, and supports well-being and quality of life for all Territorians, underpinned by sustainability and resilience.

The Territory’s new Infrastructure Framework provides a clear direction and whole-of-government leadership for project planning, development and delivery, including:

• A refocused Strategy 2022 – 2030 to outline the Government’s vision;

• A new Audit Series to assess needs, analyse gaps and identify reforms;

• A refocused Plan Series to provide an enabling infrastructure roadmap; and

• A new Pipeline Series outlining funded projects that will be delivered in the short term to assist industry with workforce capability and capacity decisions.

The Framework, Strategy and Plan and Pipeline have been informed by consultation with Northern Territory and Australian government agencies, local government, land councils, industry representative bodies and the private sector.

Supporting this vision are the industry sectors that will grow our economy, and subsequently our population growth – emerging industries, agribusiness, tourism, lifestyle, resources and defence and national security sectors - and the enabling infrastructure ecosystems to support this growth, including transport and logistics, utilities, social infrastructure and land.

The Plan and Pipeline provides a detailed roadmap to the investments that will enact Government’s vision of a sustainable and diverse $40 billion economy by 2030.  It aligns with Infrastructure Australia’s national priorities and takes a place-based approach, which was strongly supported through consultation feedback. The Plan and Pipeline identifies projects, programs and proposals that will address challenges and capture opportunities in each of the regions throughout the Territory from a nationally significant perspective, Territory-wide view and from within the six distinct regions.

The new NT Infrastructure Audit will be completed in 2 phases. Phase 1 comprised a desktop study of existing material.

Phase 2 of the Audit will provide a gap analysis of existing baseline infrastructure and service level standards, identify reforms to harness opportunity and address challenges in the mid-term to 2030 and the longer term to 2050.

To view the Infrastructure Plan visit https://dipl.nt.gov.au/strategies 

Source: NT Government Newsroom

MOU signed with Jemena, securing access to the Northern Gas Pipeline for the proposed 100 TJ per day Maverick Pilot Development

Highlights 

• Tamboran and Jemena have signed a binding Memorandum of Understanding (MOU) to enable Tamboran to contract ~100 TJ per day of firm capacity through the Northern Gas Pipeline (NGP), subject to applying NGP Access Principles, under a long-term gas transportation agreement.

• The long-term transportation access agreement with Jemena will support the sanctioning of the proposed Maverick Pilot Development, planned for the end of calendar year 2023. 

• Over calendar years 2022 and 2023, Tamboran plans to drill three horizontal wells within EP 136. Based on a Netherland, Sewell and Associates, Inc (NSAI) maturation study, if successful, these wells could deliver approximately 1 trillion cubic feet (TCF) of 2C contingent resources, sufficient to support the proposed Maverick Pilot Development. Tamboran is targeting initial production from the development by the end of calendar year 2025. 

• Tamboran will now commence Front End Engineering and Design (FEED) studies to progress the proposed Maverick Pilot Development. 

• Tamboran will commence stakeholder engagement activities for the selected pipeline route and secure NGP access agreements with Jemena, planned to be completed during the second half of calendar year 2022. 

Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said:

“It is strategically important for Tamboran to secure access to the Jemena-owned Northern Gas Pipeline, an important piece of infrastructure and currently the only gas pipeline route connecting the Northern Territory to Australia’s East Coast gas market.

“The binding MOU contemplates Tamboran securing firm capacity on the NGP of approximately 100 terajoules per day, which will support the sanctioning of the proposed Maverick Pilot Development.

“If the planned three well drilling program within our EP 136 permit is successful, we expect to book approximately 1 TCF of 2C contingent gas resources, convertible to 2P gas reserves upon finalisation of a gas sales agreement, which will support the Maverick Pilot Development. Production is targeted to commence by the end of calendar year 2025, delivering much needed gas molecules to the East Coast.

“Tamboran will now fully fund FEED activities for the proposed Maverick Pilot Development, which will involve the potential to integrate renewable technologies, in line with our aspiration to be a Net Zero gas producer when production commences.

“Over the past two years, the Tamboran and Jemena teams have built a strong relationship, evaluating the most cost effective and efficient way to bring Tamboran’s low-carbon dioxide gas in the Beetaloo to Australia’s East Coast gas market.

“With the current state of the gas crisis on Australia’s East Coast, we are proud to play a part in the solution to not only deliver low-cost gas to Australian households, businesses and manufacturers, but also help reduce carbon dioxide emissions in the region where approximately 60 per cent of electricity generation is still from coal fired power.

“Development of the Beetaloo Sub-basin is expected to support Australia’s energy security and drive significant economic activity within the Northern Territory. This includes potential generation of billions of dollars in royalties to the Northern Territory Government and the creation of approximately 4,000 jobs in the region.

Source: Tamboran Resources

View full ASX Announcement here

ASX Announcement

Highlights

• Tamboran has commenced an 85-kilometre 2D seismic acquisition program within its 100 per cent owned and operated EP 136 acreage, as approved by the Northern Territory Government, with a valid Aboriginal Areas Protection Authority (AAPA) Authority Certificate (AC).

• The seismic program includes twelve seismic lines allowing for enhanced resolution of the Mid Velkerri ‘B shale’ formation within the ‘Core’ Beetaloo Sub-basin

• Approved civil works commenced in early June with the construction of access tracks, three well pads and a camp pad. The first control monitor water bore well is currently being drilled. 

• Civil works are expected to be completed ahead of drilling the Maverick 1H (M1H) well, which is targeted to commence drilling in the third quarter of calendar year 2022. 

Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said: “We have formally commenced our 2022 civil activities within our 100 per cent owned and operated EP 136 permit, within the ‘Core’ Beetaloo of the Northern Territory. The activities will be undertaken in accordance with the Environmental Management Plan, approved by the Minister for the Environment, and all associated approvals or instruments including an Exploration Agreement with Native Title Holders (as identified by the Northern Land Council) and an AAPA Authority Certificate.

“Despite unlawful attempts by the pastoral leaseholder to frustrate our approved exploration activities, civil works are expected to be completed ahead of the commencement of drilling the M1H well, which is presently on track for the third quarter of calendar year 2022.

“We believe the M1H well is one of the most exciting wells to be drilled in Australia during 2022. Drilling of the M1H well will be a significant milestone for the Company, as our first operated well, and for the future commercialisation of the Beetaloo Sub-basin. This occurs at a time when gas price volatility and price rises on Australia’s East Coast have reached record levels following years of under-investment in new gas supply.

“The hearing of appeal proceedings in the Northern Territory Supreme Court, brought by the foreign-owned pastoral leaseholder Rallen, concluded on 21 June 2022. The appeal followed the favourable decision in Northern Territory Civil and Administrative Tribunal that supported Tamboran’s planned activities. The Company is eagerly awaiting an outcome

“Rallen have subsequently applied for an injunction relating to Tamboran’s EP 136 activities within Tanumbirini Station. Notwithstanding the application, Tamboran’s approved activities within EP 136 are continuing and the Company will update the market if there are any material developments.” This ASX announcement was approved and authorised for release by the Disclosure Committee of Tamboran Resources Limited.

Source: Tamboran Resources

View full ASX Announcement here 

The $35 billion solar power export venture Sun Cable is primed to ramp up efforts to attract government and private backers to meet its target of a final investment decision by early 2024, after it was deemed “investment-ready” by Infrastructure Australia.

The move by the federal government’s infrastructure adviser opens up the ambitious project – involving exporting power from an outback solar farm in the Northern Territory through a 4200-kilometre cable to Singapore – to potential funding by government agencies. Those include the Northern Australia Infrastructure Facility and Clean Energy Finance Corporation, and potentially Export Finance Australia.

“Having passed through that third-party analysis is very helpful and puts us in a good starting position for discussions with NAIF and the CEFC,” said Sun Cable managing director David Griffin.

“Now that we have passed this milestone with IA we’re at the start of a process to ramp up our financing efforts, for equity and debt for the project. We will be needing support from a wide range of lending entities, and we will look to all those opportunities.”

Infrastructure Australia said the project, which is backed by billionaires Mike Cannon-Brookes and Andrew Forrest, “is strongly aligned with government priorities around development of northern Australia and transition to less carbon-intensive forms of energy”.

It pointed to “highly positive” public benefits from the project, including lower cost energy in the Northern Territory, establishing a new renewable energy export sector to South-East Asia, and spurring new economic activity to deliver the project and among industrial users.

It estimated that the project would cut the cost of electricity in Darwin by about 12 per cent, and improve quality of life by reducing greenhouse gas emissions. Those benefits were valued at $184 million and $3.15 billion, respectively.

The venture raised $210 million in a series B funding round earlier this year, but must raise multiples of that to reach financial close in early 2024. Macquarie Capital is advising on funding.

Infrastructure Australia noted the benefits estimate for the project “are premised on the proposal being largely developed on a commercial basis with private funding”, and said those are dependent on Sun Cable securing contracts for its output.

Mr Griffin pointed to “strong industrial demand” in Darwin for power, as well as interest from end users and others in Singapore.

“We are very happy with progress in both markets,” he told AFR Weekend.

The project involves the construction of a huge solar farm in the Barkly region backed up by batteries on site and near Darwin, and a high-voltage cable from the site through Indonesia and to Singapore.

It is estimated the project will deliver $8 billion in investment in Australia and $2 billion in annual export revenues, starting in 2028, roughly the same as the dairy industry today.

Construction is planned to start in 2024, with electricity to be supplied to Darwin in 2027 and full operations by 2029.

Northern Territory Chief Minister Natasha Fyles said the project would position the Territory as “a renewable energy powerhouse” and establish a new energy export industry.

Sun Cable has taken on several heavyweight advisers and partners to help advance the project, including PwC, engineering giant Bechtel, Hatch, risk adviser Marsh, and SMEC, a specialist engineering and design consultancy owned by the Singapore government’s Surbana Jurong Group.

Electricity from the venture is intended to displace imported gas for Singapore, reducing its reliance on a fuel for which prices have surged in recent months and which contributes to global warming when burnt.

Source: Financial Review