Industry News

Hydraulic Fracturing Implementation Progress Update Nov 2020 to Apr 2021

This progress update provides detail on the status of implementation from 1 May 2021 to 31 October 2021. There are 135 recommendations in total, however three of the recommendations were separated at the time of implementation planning, resulting in a total of 138 recommendations to be reported on.

As at 31 October 2021, 65 of the 138 total recommendations were fully completed. Updates to the implementation status of individual recommendations can be found by clicking on the relevant recommendations.

Highlights from the progress achieved in the six month reporting period and next steps align to the following four key areas of implementation and reform and are summarised below:

• The Strategic Regional Environmental Baseline Assessment (SREBA) for the Beetaloo Sub-Basin
• Regulation and Assessment
• Completing implementation of the Inquiry recommendations
• Information management and community engagement.

Updates on implementation of recommendations from the Final Report of the Scientific Inquiry into Hydraulic Fracturing are available on the Hydraulic Fracturing website.

1. SREBA
2. Regulation and Assessment
3. Completing implementation of Inquiry recommendations
4. Information Management and Community Engagement

Independent Oversight of the Ninth Hydraulic Fracturing Implementation Progress Update

The role of the Independent Overseer is to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed. The nature of this role requires the Independent Officer to remain at arms-length from day-to-day decisions and processes relating to implementation.

The Chief Minister approved the extension of Dr Ritchie’s term as Independent Overseer until 31 December 2022 to see out through implementation of remaining recommendations.

Dr David Ritchie, has provided comment on the progress of implementation outlined in the latest six-monthly update.

Overall, Dr Ritchie found that implementation continues satisfactorily in accordance with the findings of the Inquiry.

Read Dr Ritchie’s full advice here

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

What’s next?

The NT Government is progressing from stage two to stage three of the Implementation Plan for most Hydraulic Fracturing Inquiry recommendations. Stage three recommendations are mostly larger projects that are anticipated to be delivered by December 2022. Progress updates will be announced through six-monthly community bulletins as Stage 3 of the Implementation Plan continues.

Want to find out more?

To find out about opportunities to engage in consultation or to keep up to date with status of implementation of each recommendations, sign up for regular updates on the website: hydraulicfracturing.nt.gov.au/contact or by email: hydraulic.fracturing@nt.gov.au

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 Territory Labor Government knows that investing in renewables delivers clean, affordable and reliable energy for Territorians, attracts new private investment and creates more local jobs.

Today, a major step has been made towards the Labor Government’s 50% Renewable Energy Target. The tender has been awarded for the 35MVA (megavolt amps) Darwin-Katherine Battery Energy Storage System (DK BESS) – a ‘big battery’ – for the Darwin-Katherine grid, which will deliver cost savings of around $9.8 million per year. The DK BESS is expected to pay for itself in approximately five years.

Global technology leader Hitachi Energy is committed to advancing a sustainable energy future for all. With customers in the utility, industry and infrastructure sectors and a 30-year history in the Territory, Hitachi Energy will deliver the major components of the $45 million DK BESS to be built and located at Territory Generation’s Channel Island Power Station. 

The Darwin-Katherine Electricity System provides energy to 150,000 Territorians, and one in six customers have roof top solar panels. Customers are using more of their own solar generation to power their homes and businesses during the day rather than using traditional generation.

The $45 million DK BESS is the first step towards reducing the use of gas generators for the Darwin-Katherine system. It will unlock further capacity for households to connect their rooftop PV or for industry to invest into lower cost solar systems for the commercial and industrial operations. The DK BESS will use Hitachi Energy’s virtual synchronous machine technology to replace the existing thermal generation. 

The revised battery specifications offer increased storage capacity capable of delivering energy and services for longer than the original design. The battery will be online continuously, replacing one gas-fired generating unit.

Major benefits of the DK BESS include:

• Significantly reduced carbon emissions for the Territory. Reducing the need for gas-fired spinning reserve can deliver both cost savings of around $9.8 million and emissions reductions of about 58,000 tonnes per annum.

• Replaces a Frame 6 generating unit in providing contingency generation for power system events.

• Inertia from the battery will increase stability and reliability of the power supply. Fluctuations caused by the intermittency of solar energy can be managed quickly and efficiently.

Ongoing jobs and further training opportunities will be provided with the establishment of the DK BESS, supporting 25 local jobs during the build. 

Producing a BESS for the Darwin-Katherine electricity grid is a major part of the recently announced Territory Labor Government Darwin-Katherine Electricity System Plan, and fits into the Governments ‘Ready’ stage of the plan. It is also a cornerstone investment of Territory Generation’s Fleet Transition.

Construction will commence in 2022 with the DK BESS expected to be operational in 2023. 

Quotes from Chief Minister, Michael Gunner:

“We’ve backed renewables and so have Territorians - they know renewables deliver cleaner, cheaper and secure power.

“The cutting-edge technology in our Battery Energy Storage System will reinforce the Northern Territory as the solar capital and comeback capital of Australia. The BESS will store power and be the backbone of the Darwin to Katherine Electricity grid which keeps the lights on for 150,000 Territorians. 

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

Quotes from Minister for Renewables and Energy, Eva Lawler:

“The awarding of the BESS tender is a huge step forward in our plan for 50% renewables by 2030 – it is the cornerstone of our Darwin-Katherine System Plan.

“We want Territorians to have access to the latest and best technology as we build a stronger and more resilient power system for Territory households and businesses. Our electricity will be reliable and stable, while also being affordable for Territorians. 

“Renewables are the way forward, this is why we are investing in the BESS and hydrogen powered generators so we can have clean and efficient energy which helps us reach our renewables and net zero emission targets.”

Quotes from Territory Generation CEO, Gerhard Laubscher:

“Territory Generation is proud to be delivering on the Government’s Darwin-Katherine Electricity System Plan by installing the first of the region’s high specification security batteries.

“The Darwin-Katherine battery is a cornerstone of Territory Generation’s Fleet Transition. It is key to unlocking flexibility in our fleet to better manage the increasing impacts of solar on the system.”

Quotes from Hitachi Energy in Australia, Country Managing Director, Bernard Norton:

“Together with the Northern Territory Government and Territory Generation, we are enabling the Territory to meet ambitious renewable energy targets, by harnessing abundant solar resources, and move towards a carbon-neutral energy future.

“Hitachi Energy’s battery energy storage solution will be part of an intelligent electrical ecosystem and ensure full utilisation of solar energy generation and less reliance on fossil fuels.

“This battery energy storage system will allow greater penetration of renewable energy in the Territory, helping to ensure a sustainable, flexible and secure energy system for today’s generations and those to come.”.”

Source: NTG Newsroom

Eva Lawler 

Minister for Renewables and Energy

Central Australia Hydrogen Project Awarded Major Project Status

An off-grid hydrogen project in Central Australia is building momentum, with the Northern Territory Government announcing it has gained Major Project Status.

The Desert Bloom Hydrogen project is a staged commercial-scale green hydrogen operation. It has the potential to grow to a $15 billion project, and deliver around 410,000 tonnes per annum of hydrogen for domestic and international export markets.

Water is a precious resource and a sustainable water source is critical to development of renewable hydrogen projects in the Territory. This technology provides an innovative solution for securing a sustainable water source for the production of renewable hydrogen in Central Australia. The technology works by capturing water from the atmosphere in arid environments

The project is backed by Sanguine Impact Investment, which has committed $1 billion required for the project’s initial stages, and to provide the capital to roll out the full project.

Depending on how the project rollout is sequenced, it is expected that at its peak, more than 1,000 full-time jobs will be required for construction, both in Darwin and on-site in multiple locations, and more than 120 full-time jobs will be created to operate and maintain the project. 

Construction for the first stage of the project will require approximately 100 full-time construction jobs, and 6 full-time jobs for ongoing operations.

The next steps of this project include the Territory Government working with Desert Bloom Hydrogen to develop the staged project to its potential export scale, including identifying suitable land in Central Australia to harness solar energy and ensuring adherence to standard best practice regulatory processes and approvals.

Awarding of Major Project Status follows the company’s 12 week trial in the Barkly earlier this year.

The Government’s Northern Territory Hydrogen Masterplan outlines the Territory’s competitive advantages and how the Territory will leverage these advantages to be a centre of hydrogen technology research, production and use in Australia.

Desert Bloom Hydrogen’s proponent, Aqua Aerem, an innovative Australian and internationally owned company that is closely aligned with the nation’s push to drive new technology and accelerate the development of the domestic hydrogen industry. The project’s scale and ambition matches that of the Territory Government. 

 

Quotes from Chief Minister Michael Gunner:

“Being the comeback capital means creating more jobs in more places in the Territory – and Desert Bloom now marks the Territory’s first Hydrogen Major Project. 

“We are supporting a world-leading renewable hydrogen project, in technology that captures water from the atmosphere in arid environments. 

“With one of the best solar resources in the world – and the development of projects like Desert Bloom – the Territory will play a leading role in the emerging renewable hydrogen market.”

 

Quotes from Minister for Renewables and Energy, Eva Lawler:

“The Territory Labor Government supports hydrogen technology in the Territory. With its potential to expand to a $15 billion project, Desert Bloom  will further champion renewable hydrogen investment as part of the Territory’s transition to renewables – this is laid out in our Hydrogen Masterplan.

“The Desert Bloom Hydrogen technology provides an innovative approach to secure a sustainable water supply, which is an essential in the development of renewable hydrogen and will be particularly valuable in arid areas.

“As renewable hydrogen technologies are continuously evolving, having projects like this in the Territory is further cementing the Territory as a renewables super hub, while also creating long term jobs in the process.”

 

Quotes from Aqua Aerem CEO Gerard Reiter:

“This is proven technology that is ready to produce green hydrogen at commercial scale by 2023 with no impact on our water supplies. Desert Bloom will produce 410,000 metric tons of green hydrogen annually for export and domestic use when at full scale.

“The NT is the perfect place for this project, with the best solar conditions in the world, existing infrastructure that can be repurposed for hydrogen, and a strategic location close to the big Asian demand centres. On top of that, the NT Government has a big vision for a hydrogen-powered jobs boom that we are proud to be part of.”

 

Quote from Major Project Commissioner Jason Schoolmeester:

“Desert Bloom Hydrogen presents an exciting opportunity to accelerate the Territory’s hydrogen industry - production, supply and service, and research and training. 

“The provision of renewable power to our regional industries including mining and agribusinesses, will provide a competitive advantage in a world that is increasingly focused on sustainable supply chains.”

Source: NTG Newsroom

The Federal Government has announced five new areas in Australia’s waters will be made available for exploring offshore greenhouse gas storage opportunities. 

Minister for Resources and Water, Keith Pitt, said the bidding round opened on the 6 December for the 2021 Offshore Greenhouse Gas Storage Acreage Release, which is centred around prospective locations offshore Northern Territory and Western Australia.

“This is Australia’s first greenhouse gas acreage release since 2014 and it provides a pathway for future carbon capture and storage projects,” Mr Pitt said. 

“The Government is committed to reducing emissions through the use of technology, not taxes or impositions on business, while also ensuring that our industries remain strong.

“Australia has the capacity to continue to be an energy export leader, at the same time as providing a regional hub for the storage of greenhouse gas.”

Mr Pitt said that carbon capture, use and storage is one of the priority technologies the Federal Government is developing, and that the proximity to gas fields and existing infrastructure provides opportunities for industry partnership and collaboration, further industrial development and the creation of jobs.

“All 2021 Offshore Greenhouse Gas Storage Acreage Release areas are based on industry nominations and were subject to public consultation. The government is responding positively to real industry demand for CCS – a technology that we are supporting,” Mr Pitt said. 

Work program bids are to be submitted to the National Offshore Petroleum Titles Administrator between Friday 4 March 2022 to Thursday 10 March 2022.

Maps for the 2021 Offshore Greenhouse Gas Acreage Release, public consultation comments and information on the bidding process can be found here. 

Source: https://utilitymagazine.com.au/

Santos today announced it had signed a binding Sale and Purchase Agreement (SPA) to sell a 12.5 per cent interest in the Barossa project to an Australian subsidiary of JERA Co., Inc. (JERA).

The effective date of the sale of the Barossa interest is 31 March 2020 and completion is expected in the first half of 2022. Upon completion, JERA will reimburse Santos for its share of capital expenditure on the project from the effective date to completion, with the total consideration due to Santos at completion expected to be approximately US$300 million.

JERA is an existing partner in Darwin LNG with a 6.1 per cent interest. The signing of the SPA further builds partner alignment between the Darwin LNG and Barossa joint ventures for the development and processing of Barossa gas through the Darwin LNG facilities.

The Barossa project took a final investment decision in March 2021 and is progressing on schedule and budget for first LNG in the first half of 2025. The project comprises a floating production, storage and offloading (FPSO) vessel, subsea production wells, supporting subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin LNG pipeline.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was delighted to sign the agreement with JERA and welcome them as a partner in the Barossa project.

“JERA is a long-standing partner and customer at Darwin LNG. We are delighted to have finalised our agreement with JERA consistent with the terms of the Letter of Intent that was agreed shortly after the announcement of the acquisition of ConocoPhillips’ interests in Barossa. I welcome JERA as a partner in the Barossa project and look forward to continuing to build on the important long-term relationship between our two companies.”

“Barossa is one of the lowest cost, new LNG supply projects in the world and will provide Santos and our partners with a competitive advantage in a tightening global LNG market.”

“Santos is also progressing the carbon capture and storage (CCS) opportunity at Bayu-Undan in the Timor Sea, which could provide a CCS hub for projects in the region, including Barossa,” Mr Gallagher said.

JERA Corporate Vice President and Managing Executive Officer Yukio Kani said Barossa is a good LNG investment in Australia for the company at this time.

“JERA is keen to partner with quality Australian and international partners like Santos and SK E&S, and our investment decision-making processes reflect decades of experience in the international LNG market,” he said.

Mr Kani said “Barossa works well as part of our strategy to secure ongoing and reliable LNG supplies and the agreement reflected the ongoing global importance of LNG as a transitional fuel. In addition, JERA will also work with its partners to study the development of zero-emission projects and to evaluate CCS projects. Through these initiatives, JERA will evaluate opportunities for the reduction of CO2 emissions from the Barossa project with the partners.”

At completion, which is subject to customary consents, regulatory approvals and JERA entering into binding financing arrangements, the participants in the Barossa project will be Santos (50 per cent and operator), SK E&S (37.5 per cent) and JERA (12.5 per cent).

The participants in Darwin LNG are Santos (43.4 per cent and operator), SK E&S (25 per cent), INPEX (11.4 per cent), Eni (11 per cent), JERA (6.1 per cent) and Tokyo Gas (3.1 per cent).

Download:

Santos agrees sale of 12.5% interest in Barossa project to JERA

Source: https://www.santos.com/news/

Empire Energy has completed the drilling of the CarpentariaI-2H vertical section to a total depth of 1835 m by Silver City Rig 40, located in the Northern Territory’s Beetaloo Basin.

Across the four stacked Velkerri Foundation pay zones, the well has encouraged thick liquids rich gas shales.

Strong gas also shows across the target formations and live gas bleeding from core samples.

Interpretation of well logs shows a strong correlation in thickness and rock characteristics of the four stacked shale targets to the Carpentaria-1 location.

Target shales are 240 m deeper compared to Carpentaria-1, which is consistent with pre-drill seismic interpretation.

Empire’s managing director Alex Underwood said the company was delighted with the drilling results.

“Results reinforce our modelling of strong continuity of the Velkerri’s liquids rich gas target shales with a strong match with the Carpentaria-1 location 11km away, albeit 240m deeper at Carpentaria-2,” Underwood said.

“Increased depth is likely to support increased flow rates while maintaining a cost advantage over deeper drilling.”

Underwood said the drilling for the horizontal section of Carpentaria-2H has started.

“[It is] our first ever horizontal well, targeting the Velkerri B shale, which was the strongest contributor to gas production of the four target formation in the Carpentaria-1 vertical flow test,” he said.

Empire is targeting the Middle Velkerri B shale in the next round of drilling.

The announcement follows the recent increase in flow rates for the company’s CarpentariaI-1 well in the same permit area.

CarpentariaI-2H will be suspended over the wet season after the drilling, casing and cementing of the horizontal section, which will be underway in the coming weeks.

Source: Oil & Gas Today

Beetaloo Regional Reference Group - Meeting Four Communique

Date: Tuesday, 16 November 2021

Attendees: nominated representatives of Northern Land Council, Sturt Plateau Best Practice Group, Barkly Regional Council, NT Farmers Association, Department of Environment, Parks and Water Security (DEPWS) staff, and Department of Chief Minister staff.

Apologies: Sunrise Health, Territory Resource Services Association, Territory Natural Resource Management, Katherine Town Council and Roper Gulf Regional Council.

Purpose

The Beetaloo Regional Reference Group (BRRG) is a consultative forum for community views regarding, and providing input into, the Strategic Regional Environmental and Baseline Assessment (SREBA) studies within the Beetaloo Region.

Presentations from SREBA study teams

• Social, cultural and economic studies
• Terrestrial ecosystems
• Methane and greenhouse gas studies
• Aquatic ecosystems.

Discussion on presentations

• Consultation should occur on the Data Management Strategy development and implementation. Dedicated meeting to be scheduled by the chair when a draft strategy is available.
• SCE workshops should be held in the region (Katherine at least). UQ to investigate options for this.

Progress and updates

• Draft environmental health scope of works currently under review by specialists from key organisations.
• Cancellation of face-to-face meetings will be replaced where possible by virtual, phone and email communication.
• Online SREBA update will be held on 30 November 2021. Recording of this update to be broken into segments and shared on the web.

Other business

Meeting schedule for 2022 to be determined out of session.

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

Central Petroleum has signed a new ‘firm’ gas supply agreement (GSA) for up to 3.15 pjs of gas to the Northern Territory’s Power and Water Corporation (PWC).

This is via a back-to-back GSA with Macquarie Mereenie (MM) and is a four-year contract.

The back-to-back GSA with MM is in support of a master GSA which has been initially entered between MM and PWC as the end customer.

The company’s gas plans to be combined with existing gas supply owned by MM, which includes NZOG and Cue.

As a result, a total 12.6 pls to PWC will be supplied.

With take-or-pay provisions, the GSA is a fixed price subject to annual CPI escalation.

Following the 2021 Mereenie development campaign, the GSA commercialises a portion of the increased production purchased online.

The 2021 campaign administered two new production wells to be drilled and four existing wells to be recompleted.

Central will be conducting joint marketing authorisation by The Australian Competition and Consumer Commission (ACCC) soon.

The company plans to facilitate larger amounts being supplied from the MM field with the joint marketing.

Under the GSA, ex-field pricing exhibits strong market conditions, thus Central is expecting this will have a positive impact on the company’s average portfolio gas price throughout the next 4 years.

As Central will deliver gas directly into the Amadeus Gas Pipeline from either the Mereenie or Palm Valley delivery points, no gas transportation is required under the GSA.

This follows the announcement in September that New Zealand Oil & Gas (NZOG) has agreed purchased interests in Central Petroleum in three producing Northern Territory assets.

From 2022, Central is continuing marketing additional gas for sale.

Source: Oil & Gas Today

Tamboran Resources and Santos have completed the CY2021 drilling program of the Tanumbirini 3H (T3H) well in EP 161 in the Beetaloo Sub-basin.

The Beetaloo Sub-basin is located within the Greater McArthur Basin in the Northern territory.

T3H has been cased and cemented successfully, whist the Easternwell Rig 106 has been demobilised and moved off the Beetaloo Sub-basin.

Tamboran managing director and CEO Joel Riddle said the program was managed safely, with no incidents occurring.

“[This is] a testament to the excellent leadership and unwavering commitment to health, safety and environment by the rig crew,” Riddle said.

Riddle said the EP 161 joint venture will now test the productivity of each well.

“[This is] with approximately 10 stages of fracture stimulations per well in the target formation of the Mid-Velkerri ‘B’,” he said.

“Initial flow test results are expected in December 2021.”

“Key learnings” as well as knowledge have been provided by the The CY2021 drilling program in EP 161, Riddle added.

“We intend to incorporate [these learnings] into the drilling of the 100 per cent owned and operated Maverick 1H, located in EP 136, during CY2022,” he said.

Tamboran Resources Limited is a natural gas company planning to have a constructive role in the global energy transition to a lower carbon future.

The company is accomplishing this through the development of low Co2 unconventional natural gas resources in the Beetaloo Sub-basin.

The announcement comes after Tamboran secured $20 million from founder, chairman and chief executive of US Permian Basin independent Parsley Energy Bryan Sheffield.

Santos is Australia’s second-largest independent oil and gas producer.

Source: Oil & Gas Today

Falcon Oil & Gas releases it's preliminary petrophysical interpretation of the Velkerri-76 wireline logs.

View full announcement