Industry News

Altrad Services has been awarded a contract from INPEX to perform coating and insulation work at Ichthys LNG onshore processing facilities at Bladin Point in Darwin.

The scope of services under the contract includes work pack preparation, planning, coordination, supervision, provision of access and execution of coating and insulation works.

The contract is four four years and provides the opportunity for local employment for more than 150 persons.

“Altrad Services is proud to have supported Ichthys LNG since 2019 and this contract award reinforces its strong relationship with INPEX and testament to Altrad’s high quality, safety and execution capabilities,” a spokesperson for Altrad said.

Altrad chief executive for Asia Pacific Neil Sadler said the company was delighted to support safe operations and local employment at Ichthys LNG through the painting and insulation contract.

“This important award highlights Altrad’s performance, people and market-leading capability,” Sadler said.

“We value and embrace the collaborative approach of INPEX’s management, their prioritisation of safety, innovation, diversity and their determination to provide sustainable opportunities for the local community.

“This approach has fostered an amazing team culture on-site over the past two years and we look forward to continuing our support of INPEX-led Ichthys LNG to benefit both parties and the local Darwin community.”

Source: Oil & Gas Today

Community Bulletin #49

Social, Cultural and Economic SREBA Studies Scope of Works approved by Minister for Environment

The Strategic Regional Environmental and Baseline Assessment (SREBA) Social, Cultural and Economic Study (SCE Study) was a key recommendation from the Hydraulic Fracturing Independent Inquiry. It is an important piece of work that continues to be a priority for Government as implementation of remaining recommendations progresses.

During 2021, The University of Queensland (UQ) met with local organisations in Darwin and Katherine to develop a Scope of Works (SoW) for the SCE Study. The design of the SoW was then approved by UQs accredited Human Research Ethics Committee to ensure that the project is conducted properly and remains independent.

Approximately 40 key stakeholder groups, including land councils, Aboriginal Areas Protection Authority, NT Government departments, regional councils, industry and business organisations, Native Title holders, pastoralists, interest and environment groups were engaged in the development of the SoW regarding boundaries, draft indicators and themes, data collection and engagement preferences.

The SoW has been approved by the Minister for the Environment.

As outlined in the SoW, the SCE Studies will incorporate on-country engagement and appropriate participatory methods informed by stakeholder engagement to establish baseline data and then bring together information from the baseline studies to inform the strategic regional assessment.

UQ will now formally commence engagement as part of Stage 2 of this project in the Beetaloo region. Engagement will take place where possible, noting this will require a flexible approach due to COVID-19 restrictions and with the wishes and safety of the communities in mind. Where it is not possible to meet with people and organisations in person, meetings will be held online or once it is safe to travel.

Upon finalisation, the SCE Study will complete ten recommendations from the Hydraulic Fracturing Inquiry.

Find the SCE Study SoW and a summarised fact sheet about the Study here

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 situation around coronavirus (COVID-19) continues to evolve and this information is correct as at 4.30pm, Friday 18 February 2022.

The NT Chief Health Officer has today removed the requirement for Interstate arrivals to the Territory to complete a Border Entry Form.

The change is effective immediately and brings the Territory into line with all mainland jurisdictions outside of Western Australia.

As the Territory transitions to living with COVID it is important its resources continue to be directed where they are of most use. 

With high vaccination rates in the Territory and across the country it has become an unnecessary use of resources to require all travellers to complete a border entry form to enter the Territory.

To slow the spread of COVID-19 in our community and reduce the rate of transmission, a number of public health measures remain in place across the NT:

• A Territory-wide indoor mask mandate
• It is highly recommended that all people aged 12 years and over wear a mask outdoors when physical distancing cannot be applied
• The Territory Vaccine Pass
• The Australian Government has introduced biosecurity zones to restrict movement between remote communities in the Territory.

Read more about biosecurity zones https://coronavirus.nt.gov.au/travel

Source: NT Government, Department of Industry, Tourism and Trade

Announcing Desert Spring Octopus

The World’s Largest Indigenous Owned Renewable Energy Company

Today, 17 February 2022, Northern Territory Indigenous Business Network (NTIBN), together with Octopus Australia, an Australian domiciled and part Australian owned member of the Octopus Group UK and Desert Springs Renewables, a 100% owned Indigenous company, is proud to announce the formation of the world’s largest majority Indigenous-owned renewable energy company, known as Desert Springs Octopus.

Through Desert Springs Octopus, we will open up renewable energy and other infrastructure opportunities for First Nations Australians specifically targeting Northern Australia.

Desert Springs Octopus, which is majority owned and led by Indigenous Australians, will lean on the global expertise of Octopus in renewable investments and development to stimulate significant economic growth in First Nations Australia.

Excerpt from NTIBN media release

16 February 2022

Joint media release with Minister for Industry, Energy and Emissions Reduction the Hon Angus Taylor MP and Treasurer the Hon Josh Frydenberg MP

Tight global gas markets have reinforced the importance of continued investment in Australia’s gas resources to avoid the supply shortfalls and high prices being experienced internationally. 

The Australian Competition and Consumer Commission’s (ACCC) latest Gas Inquiry Interim Report found that while domestic gas contract prices rose slightly between March and August 2021, Australia avoided the up to 230 per cent price increases seen overseas in the Asian LNG spot market.

The ACCC notes that timely investment and advancement of gas basins and infrastructure is critical to avoid an earlier than previously forecast gas supply shortfall in the south. 

Southern states are likely to be reliant on gas from the north to avoid a shortfall on certain days later this year. This is predominately due to a reduction in forecast production in the Gippsland and Cooper Basins. 

Consistent with the Government’s 2021 National Gas Infrastructure Plan, the ACCC notes that over the long term the development of basins such as the Beetaloo (NT), North Bowen (QLD), Galilee (QLD) and Gunnedah (Narrabri, NSW) would help to alleviate the shortfall. 

The report also notes that although low emissions alternatives may assist supply in the medium to longer term, technologies like hydrogen will not assist any sooner than 2030. 

Treasurer Josh Frydenberg said the ACCC acknowledged the Government’s measures to bring forward new domestic supply and to protect Australian households and businesses from the kinds of price and supply issues being experienced in other countries.

“The ongoing supply of affordable gas is crucial to helping Australia’s economy as it rebounds from the impact of the COVID pandemic,” Treasurer Frydenberg said.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said domestic gas contract prices remained internationally competitive at around $6.70–$9.60 a gigajoule, while Asian LNG spot prices increased steeply over the reporting period.

“Australia has been fortunate to escape the devastating price impacts seen in Europe due to their energy crisis. Accelerating the gas-fired recovery is essential to ensure this does not happen here,” Minister Taylor said. 

“While the report notes some positive signs for infrastructure investment in expanding south-bound capacity, the Government will continue to assist industry where needed through our Future Gas Infrastructure Investment Framework.

“It is clear from the ACCC that underinvestment in the gas sector cannot continue. 

“This report is a stark warning that we cannot allow activism to slow gas projects. Without unlocking gas, we will feel the price pressures being experienced overseas.

“A Labor-Green partnership is a real threat to future gas supplies and gas prices.”

The ACCC also notes that Government-led initiatives such as the Energy Ministers’ pipeline reforms, and the voluntary Code of Conduct will help to constrain market power, improve price transparency and provide benefits for gas users. 

Minister for Resources and Water Keith Pitt said the interim report highlighted the need to further develop Australia’s vast gas resources, with the ACCC flagging a tightening east coast domestic supply-demand balance in 2022. 

“The Government recognises the importance of regularly looking for new opportunities to improve gas supply in the east coast market,” Minister Pitt said.

“This Government understands the importance of opening gas developments in Australia. We have committed to release new Strategic Basin Plans to unlock supply. Plans for the Beetaloo Basin and the Galilee and North Bowen basins have been released, and we are working on the Cooper and Adavale Basins’ Plan.

“The ACCC notes the uncertain supply outlook emphasises the importance of the Heads of Agreement signed with major producers, which continues to ensure competitive gas supply into the domestic market. The ACCC will continue to closely monitor LNG producer compliance with the Heads of Agreement.”

“I also fully endorse the ACCC’s strong encouragement of state governments to not adopt blanket moratoria or bans on gas development – these reckless bans cannot come at the cost of our energy security.

“It should be a concern to all Australians that this is exactly what The Greens have proposed in a Bill put before Parliament as part of their deal to support Labor if they hold the balance of power in a hung parliament.”

The ACCC report is focussed on the east coast gas market and is available on the ACCC website.

Media contacts:

Minister Taylor's office 02 6277 7120

Minister Pitt's office 02 6277 7180

Following the release of their social and economic impact assessment (led by ACIL Allen) in September 2021 which shared an independent report forecasting a bright decade ahead for the Northern Territory.  INPEX shares their mid-term strategy 'INPEX Vision @ 2022', outlining their plans in the Northern Territory for gas expansion and an additional LNG train by 2030 along with milestones for investment in carbon, capture and storage, renewable energy, and hydrogen.

To view their full strategy follow the link below:

https://www.inpex.co.jp/english/company/pdf/inpex_vision_2022.pdf

CENTRAL Petroleum is farming down three Amadeus Basin permits to the private Peak Helium, which will free carry the former for two sub-salt helium exploration wells.

Santos retains its existing share of all the permits. 

It marks a return to onshore helium exploration for Santos, which remains operator, whose Bayu Undan field that sends gas to the Darwin LNG plant is set to close in 2023. It is Australia's only commercial source of helium. 

Australia's sub-salt basins have always been seen as prospective for helium and more recently native hydrogen, given the thick seals trap the tiny molecules in a way other formations do not. 

One will target the 2014 hydrogen find at Mt Kitty by Santos, which never flowed commercial rates of the gas but was considered one of Australia's first native hydrogen finds. Mt Kitty also recorded a 9% helium concentration. Anything over 2% is considered extremely high. 

Bayu Undan, conversely, is only 0.1% but its LNG-sized scale makes it commercial. 

"The exploration program will also target naturally occurring or "gold" hydrogen which makes up a relatively high 11.5% of the gas found at Mt Kitty-1," Central said today. 

Gold is the newest colour added to the expanding hydrogen rainbow. Green is made with water and renewable energy, blue with natural gas and carbon capture and storage for the resulting CO2. Pink is made using nuclear power and water. Grey, black and brown all use hydrocarbons with no solution for the CO2 except to allow it into the atmosphere. 

Gold, or native hydrogen, is relatively new but geologists are now working overtime to identify sources. The first discovery was in Mali some years ago. The barrier to hydrogen is the same as helium: the natural gas that makes up the majority of the resource must also have a way to be commercialised. 

The other well will be at the Magee of Mahler prospect. Central also plans to move back its long-shuttered Dukas well, which has been chasing a helium resource in the same area since 2018 before mechanical issues led to a permanent shut in around 2019.

Central will farm down 31% of EP82, excluding the Dingo Satellite area, leaving it with 29%. It will also farm down 10% of EP112, dropping from 45% to 35% and 6% of EP125, with its interest to drop from 30% to 24% Mt Kitty is in EP125. 

Free carry costs will be capped at $20 million per well, with an effective date of October 1 2021, for two wells both targeting natural gas, helium and hydrogen in the sub-salt structures of the basin. 

"Santos has confirmed that it has entered into farmout arrangements with Peak covering their interests in EP82, EP112 and EP125, as well as their interests in EP105, EP(A)111 and EP(A)124," Central said today. 

"Central also has interests in the latter three blocks but these are not included in Central's farmout to Peak. There will be no change in Santos' role as operator under the farmout arrangements."

Drilling begins next year. 

"The investment by Peak sets a benchmark for the value of this acreage and demonstrates the potential of our sub-salt prospects for natural gas, high value helium and "gold" hydrogen," Central CEO Leon Devaney said today.

Source: Energy News Bulletin

Central Petroleum has entered into a farmout agreement with Peak Helium for various interests within the southern Amadeus Basin. 

Under the farmout, Peak will fund Central to drill two new sub-salt exploration wells: one at Mt Kitty and the other at either Magee or the nearby Mahler prospect. 

Combined with the planned Dukas exploration well, a total of three sub-alt exploration wells will now be prioritised for drilling in the Amadeus Basin. 

Central chief executive and managing director Leon Devaney said that the agreement for Peak was a “great catalyst” for a major near-term exploration drilling campaign. 

“We have clear joint venture alignment and full funding for the Mt Kitty and Magee/Mahler sub-salt exploration wells based n current drilling cost estimates,” said Devaney.

“We welcome Peak as a new joint venture partner, with this transaction marking a major step forward for further exploration in the southern Amadeus Basin.” 

Devaney added that the investment by Peak sets a benchmark for the value of the acreage, demonstrating the potential sub-salt prospects for natural gas, helium and hydrogen. 

Previous drilling in all three prospects has confirmed the presence of helium, hydrogen, and gaseous hydrocarbons.

Peak will earn a partial transfer of Central’s interests in the three permits. As such, the company will acquire 31 per cent in EP82, 10 per cent in EP112, and 6 per cent in EP125. 

Santos, operator of the three permits, has also entered farmout agreements with Peak, whereby the latter will acquire 20 per cent of Santos’ interests in EP82, 25 per cent in EP112, and 50 per cent in EP125. 

Santos will continue as operator in all three permits, and drilling is scheduled to commence in 2023.

Source: Oil & Gas Today 

8 February 2022

The Territory town of Jabiru has been powered by 100 per cent solar for the first time.

The milestone follows the completion of construction and as part of the final commissioning of the new Jabiru Hybrid Renewable Power Station this week.

The new hybrid power station will secure reliable and affordable electricity for Jabiru residents and businesses.

It will also provide Jabiru with at least 50 per cent renewable energy over the long-term using a hybrid model of solar generation, battery and diesel power, and its operation will see the equivalent of 1600 cars being removed off the road each year.

This model meets the Territory Labor Government’s target of 50 per cent renewable energy by 2030.

The project is part of the Territory Labor Government’s $135.5 million dollar commitment to the Future of Jabiru and Kakadu package, and is the first project to be completed as part of the transition to a tourism and services hub.

The renewable hybrid project was constructed and is being operated by Energy Developments Pty Ltd (EDL), a global leader in remote renewables.

Construction of the Jabiru Hybrid Renewable Power Station created around 300 jobs for local Territorians, including the Djurrubu Rangers who were employed to assist with land clearing, and cultural and environmental management.

Territorians have also been employed as part of the operational phase.

Quotes from Chief Minister Michael Gunner:

“Jabiru is an iconic Territory town – the gateway to Kakadu National Park and the West Arnhem Region. 

“We are investing millions into Jabiru to transform it into the tourism and services hub we know it is well positioned to be.

“This new Power Station has helped create more jobs for locals, and it is paving the way for better and more reliable services for Territorians and businesses in Jabiru.

 

Quotes from Minister for Renewables and Energy Eva Lawler: 

“Today’s announcement follows the successful transition of Jabiru residents’ power over to the new Power Station.

“Territorians deserve access to the very best services, no matter where they live, and we welcome this important step in beginning to transfer power to the new station. We are investing millions into Jabiru to transform it into the tourism and services hub we know it will one day be, and we need the infrastructure to get it there.

“The Territory Labor Government has set a 50 per cent renewable energy target by 2030, and we are on track to meeting this.”

Quotes from EDL Chief Executive Officer James Harman:

“It has been a privilege to work with the Northern Territory Government and key local stakeholders to deliver this transformative project for Jabiru’s future.

“The Jabiru Hybrid Renewable Power Station is now providing the town with stable, reliable energy that is at least 50% renewable over the long term, enabling the community to realise their vision of being an ecologically sustainable tourism and cultural hub for the region.”

Source: NT Government Newsroom

6 February 2022

The Territory Government is undertaking detailed investigative work into the baseline data of the Beetaloo Sub-Basin.

This week the Territory Government has released a tender for Environmental Health studies under the Strategic Regional Environmental and Baseline Assessment (SREBA) program in the Beetaloo Sub-basin.

There are four individual projects to be completed under this section of work, including:

• Population health - to set a baseline of the current health status of the population in the region;
• Air quality – to establish a baseline of air quality at selected sites in the region and develop a methodology for a monitoring program;
• Soils – a review and gap analysis of the studies undertaken through the Geological and Environmental Baseline Assessment program and Gas Industry Social and Environment Research Alliance program, the Department of Environment, Parks and Water Security (DEPWS) data holdings and any other relevant work, to establish a soil health baseline and develop a monitoring program.
• Water quality – a review and gap analysis of the water quality studies undertaken through the GBA program, GISERA and the Strategic Regional Environmental and Baseline Assessment (SREBA) program Water Quality and Quantity studies

Environmental Health is one of the six study domains within the SREBA Framework that must be undertaken prior to the granting of any onshore petroleum production approvals, as per Recommendation 15.1 of the Scientific Inquiry into Hydraulic Fracturing.

The scoping study for the social, cultural and economic studies was recently completed and forms the SCE scope of works.

Consultations undertaken in this stage included more than 40 organisations participating in discussions. The next stages of the SCE study will incorporate on-country engagement.

Undertaking the SREBA is one of 135 recommendations from the final report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory the Government has committed to completing.

To view the report visit https://hydraulicfracturing.nt.gov.au/sreba/study-domains/social,-cultural-and-economic and tender visit  https://tendersonline.nt.gov.au/

Quotes from the Minister for Environment, Eva Lawler:

“The Territory Labor Government understands that a strong economy relies on a healthy environment and our unique environment needs a specific Territory approach.

“The release of the SREBA environmental health studies tender is a positive step forward in completing our SREBA. Territorians entrust this Government to fulfil their social obligations before allowing onshore processing. 

“The release of the SCE scope of works sets out the design and requirements for collecting the social, cultural and economic baseline data, and the release of the SREBA environmental health studies tender is a positive step forward in completing our SREBA.”

Eva Lawler

Minister for Environment

NTG Newsroom