Industry News

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

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