Industry News

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

Australia’s LNG sector ready for the future: Report 

A new Government report encouraging trade and investment in Australia’s liquefied natural gas sector confirms our reputation as a reliable and responsible supplier of energy and resources.

The Liquefied Natural Gas (LNG) Commodity Report, part of Australia’s Global Resources Strategy, highlights Australia’s comparative trade and investment advantages between now and 2050.  

Minister for Resources and Water Keith Pitt said the Australian Government is committed to delivering the strongest and most business-friendly investment environment for the Australian resources sector.

“Australia offers a strong, stable and transparent regulatory environment as well as research and development incentives to support innovation,” Minister Pitt said.

“Our proximity to Asia and high quality resources have seen us become the supplier of choice in global supply chains.

“We will seek to consolidate and strengthen this position in the decades to come.”

Minister Pitt said the report found that Australia, one of the world’s largest LNG suppliers, is a secure and competitive destination for developing LNG projects.

“Investors can have confidence in Australia’s stable regulatory settings when making long-term investments,” Minister Pitt said.

The report identifies India and Bangladesh as major emerging LNG markets for Australia.

The Government is backing the LNG trade and investment potential between Australia, India and Bangladesh through a new South Asian LNG Partnership. Australia will invest $11.3 million over 10 years in the Partnership, which will build relationships across the LNG supply chain between participating countries.

The report is available on the Department of Industry, Science, Energy and Resources website.

ENDS

Media contacts: Matt Dunstan 0411 535 072

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

23 February 2022

Minister for Resources and Water Keith Pitt has announced the Coalition Government has entered three grant agreements worth a combined $19.4 million to support gas exploration in the Northern Territory’s Beetaloo Sub-Basin.

Minister Pitt said under the Beetaloo Cooperative Drilling Program, the grants will support exploration company Imperial Oil & Gas to continue drilling three petroleum exploration wells.

Minister Pitt said this is an important step following the conclusion of the recent Federal Court action.

“The Government is committed to a gas-led recovery and we are now getting on with the job of opening up the Beetaloo as part of the Strategic Basins Plan and these grants will  assist in that important process,” Minister Pitt said.

“Australian gas is in high demand domestically and internationally and it’s important that we work to get new gas production online.”

“In an uncertain world, the reliability of Australian resources to our trading partners cannot be understated.

“As the ACCC confirmed recently, it is imperative, and to the benefit of all Australians, that new gas developments are opened up as soon as possible to ensure continuing domestic supply to homes and businesses across the country,” Minister Pitt said.

“Activists trying to stop or delay crucial gas projects threaten future energy security both here in Australia and in countries around the world that rely on our LNG exports.

“The Beetaloo Sub-basin has the potential to be a world class gas resource, that could create thousands of jobs and bolster domestic and international gas supply.

“Development and investment in the Beetaloo could be a game-changer for the Northern Territory, creating up to 6,000 jobs by 2040, supporting industrial diversification and providing stable tax and royalty streams for years to come,” Minister Pitt said.

“Our resources and energy sector is vitally important to the Australian economy and is forecast to generate a record $379 billion in exports this financial year.

“The taxes and royalties that are generated from the resources sector allow state and federal governments to provide the health, education and other essential services all Australians rely on."

ENDS

Media contact: Matt Dunstan 0411 535 072

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