Industry News

Electricity Market Priority Reforms Program Papers Released

In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has today released policy position and consultation papers on priority electricity market reforms.

Addressing system security, reliability and efficiency; encouraging private investment and maximising the amount of renewable power in our network are the main focus points of the final position paper on dispatch and settlement, and consultation papers on essential system services and reliability reforms.

The Northern Territory Electricity Market Priority Reform Program has been designed to promote competition by facilitating private sector investment in lower cost and cleaner technologies.

Territory households and businesses will benefit from the anticipated downward pressure on electricity costs as a result of a more competitive and lower-cost industry.

The Territory’s power systems are evolving as we transition to solar.

The Priority Reform Program will assist government in delivering cleaner and cheaper power for Territorians by implementing reforms to:

• Dispatch – ensuring that the most cost-effective combination of generation (including thermal and renewable generators) is dispatched in the Darwin-Katherine system. This will be achieved by allocating the System Controller responsibility for scheduling generators based on up-to-date information about generator costs and availability.
• Settlement – facilitating private sector investment by making it easier for retailers and generators, including new renewables generators, to buy and sell electricity in the Darwin-Katherine system. This will be achieved by introducing financial settlement by the Market Operator.
• Essential System Services – ensuring the changing technical requirements for system security are met in the most cost-effective way by enabling their provision by the full range of capable technologies, including batteries and renewables generators.
• Reliability – ensuring system reliability meets customer expectations while also keeping costs are as low as possible.

Electricity industry stakeholders are being fully consulted on the details of the priority reforms.

Stakeholders are invited to participate in further stakeholder working group consultation on the essential system services and reliability consultation papers by making written submissions and attending stakeholder workshops.

Final position papers on the essential system services and reliability reforms are expected to be released by mid-2021.

The announcement of the Government’s priority electricity market reforms follows the Government’s announcement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.

Procurement of the BESS is progressing on track for delivery in the second half of 2022.

The Northern Territory Electricity Market Priority Reform Program position and consultation papers can be found at https://business.nt.gov.au/electricityreforms 

Quotes from Minister for Renewables and Energy, Eva Lawler:

“Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.

“These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.

“Electricity market reform is complex. Government has been carefully working through stakeholder feedback and design considerations to inform its priority electricity market reforms.”

 

Sun Cable and the Northern Territory Government (NTG) today signed a milestone agreement to facilitate the Australia-ASEAN Power Link (AAPL), that will see the Territory host one of the world’s largest renewable energy systems.

The project includes a solar and storage precinct near Elliott, in the Barkly Region, high voltage direct current (HVDC) transmission connecting the precinct to the Darwin-Katherine Interconnected System (DKIS) and proposed Middle Arm Battery and a HVDC submarine link to Singapore.

The 70-year, $22B project will create about 1500 jobs during construction and 350 jobs during operations, as well as $1B in exports.

Signing on behalf of the Northern Territory Government, Chief Minister Michael Gunner said:

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“This project will transform the Territory into a renewable energy powerhouse, and cement our position as Australia’s comeback capital,” the Chief Minister said.

Sun Cable CEO David Griffin said the AAPL project would generate and transmit dispatchable, competitively priced, renewable energy at scale.

“This will provide affordable, reliable energy to support industrial growth in Darwin, as well as supplying up to 20% of Singapore’s electricity needs,” he said.

“The Australia-ASEAN Power Link project will help the Northern Territory make deep cuts to its emissions intensity by decoupling economic growth from carbon pollution,” he said.

Benefits of the project include:

• a world-leading renewable energy transmission system;
• economic diversification for the Northern Territory;
• reliable, affordable dispatchable power;
• providing cost effective electricity supply to facilitate new manufacturing, minerals processing and data centre projects;

• a major boost to the Territory’s construction sector and a range of other services and suppliers;

• a substantial reduction in greenhouse gas emissions in the Northern Territory, Australia and the Indo-Pacific, helping the Territory achieve its goal of net zero carbon emissions by 2050;

• Sun Cable will establish a Renewable Energy Centre of Excellence in the Territory, drawing on existing local solar, electricity and infrastructure expertise to grow research and development of renewables.

Sun Cable today signed a Project Development Agreement with the Northern Territory Government that recognises the AAPL’s Major Project Status.

Sun Cable will prepare a Territory Benefits Plan, including an Aboriginal workforce development plan and local participation strategy to maximise local jobs and procurement.

The company has engaged Darwin company EcOz to prepare its Environmental Impact Statement for the project.

The project has drawn on the services of another dozen Territory companies, covering environmental services, ecological and geotechnical surveys, architecture, legal, strategic communication and maintenance.

The company expects AAPL’s financial close to be in late 2023, with first electricity to Darwin by 2026 and Singapore from 2027.

Media inquiries

Jane Munday, True North Strategic Communication on 08 8981 6445 or 0427 880 083

FORTESCUE Metals chairman Andrew ‘Twiggy’ Forrest has proclaimed the answer to the world’s warming climate and mounting energy needs is renewable hydrogen, which he believes could turn Australia into a green steel industrial power house. 

In a speech set to be delivered on Saturday as part of the Boyer Lecture series on the ABC, Forrest said the green hydrogen market could generate revenues at the very least of US$12 trillion by 2050 - bigger than any industry currently working.  

"And Australia with characteristic luck, is sitting on everything it needs to be the world leader - but only if it acts fast," he said.  

Source: Energy News Bulletin

Read more here

Origin has submitted a notification and initial report to the Northern Territory Government confirming the discovery of hydrocarbons at the Kyalla 117 N2-1H ST2 exploration well near Daly Waters, in the Beetaloo Sub-basin.

The notification of discovery is supported by preliminary production test data and petrophysical data. It follows recent work to introduce nitrogen to lift the fluids in the well, allowing it to flow unassisted for a measurable period.

The initial report, based on early well flow data, is positive and shows:

• Unassisted gas flow rates ranging between 0.4 and 0.6 million standard cubic feet per day (MMscf/d) over a seventeen-hour period.
• Flow back of hydraulic fracture stimulation water to surface with an average rate of between 400 – 600 barrels per day (bbl/d) over the same period.
• Initial observations indicate a liquid-rich gas composition with CO2 estimated at less than 1%. Condensate shows were also present.

Origin Executive General Manager Integrated Gas, Mark Schubert said, “We are encouraged by the early results from the well, which has met our primary objective to flow liquids rich gas from the Kyalla formation.

“To support the well to flow continually without assistance we will now put in place longer term measures to flow back sufficient hydraulic fracture stimulation water, enabling production testing to commence in the coming months during the dry season.

“This is the first well to be successfully drilled into the Kyalla formation and we continue to gather important knowledge and data that will inform and refine our ongoing exploration activity in the Beetaloo,” Mr Schubert said.

The notification of discovery and initial report are a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and satisfies the requirements of the NT Guidelines for reporting a petroleum discovery.

A further update will be provided when production testing has concluded, and detailed evaluation has been undertaken, expected to be in Q2 2021.

The Beetaloo Exploration Project is a joint venture with Falcon Oil & Gas Limited. For more about the project visit www.originbeetaloo.com.au.

THE FEDERAL government has announced a new A$217 million package to upgrade roads to make the Beetaloo Sub-basin more accessible for the oil and gas industry.

On Thursday, deputy prime minister Mick McCormack and minister for resources Keith Pitt unveiled the government's Northern Territory Gas Industry Roads Upgrades program. 

The program allocates $217 million of taxpayer funds to upgrade a corridor of roads including the Gorrie Dry Creek Road, Buchanan Highway, Western Creek Road, and other key paths to the Beetaloo region. 

The government said the infrastructure would create crucial supply chains to attract gas development. 

"The Basin has the potential to transform the Northern Territory's economy. The government's investment in roads and other supporting infrastructure will help unlock these benefits as well as supporting job opportunities for locals," Pitt said.

Source: Energy News Bulletin

Read more here

JUST a day after it was revealed Neoen plans to build a 500MW battery in NSW, Origin has one-upped them, announcing plans to build a 700MW battery at its Eraring Power Station.

In a press release Tuesday, Origin said it had issued an Expression of Interest to suitably qualified firms to supply and install the battery and had lodged a Connection Enquiry to grid operator Transgrid to connect the battery to the grid. 

"We recognise we have an important role to play in positioning Origin's electricity generation portfolio to support Australia's rapid transition to renewables," Origin executive general manager Greg Jarvis said. 

Source: Energy News Bulletin

Read more here

SHELL chief Ben van Beurden has outlined some of the company’s plans to reduce its carbon emissions ahead of the company unveiling its new strategy next month.

In an interview posted on Shell's website last week, Van Beurden noted the personal and financial pain caused by last year's COVID-19 pandemic and subsequent oil price crash, forcing the company to cut its dividend. 

"I had a knot in my stomach on the day we had to announce it, even though, at a senior level, we all agreed that this was the right thing to do," he said. 

 

Source: Energy News Bulletin

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MORE ageing Australian assets are off the table after Eni has pulled the sale of its fields and associated infrastructure, apparently citing lower than expected offers. 

This follows ExxonMobil's decision to cancel the planned sale of its Bass Strait assets offshore Victoria late last year, after putting them up for sale in September 2019.  

The US giant was again apparently unhappy with the prices offered. In 2016 it tried and failed to sell its stake, though even in June last year Australian chief Nathan Fay was gung ho on the asset sale.  

Eni holds the Blacktip gas field offshore the Northern Territory, stakes in the Bayu-Undan gas field operated by Santos, which sanctioned a three-well infill drilling program two days ago to prolong the life of the declining asset, and the Darwin LNG plant it feeds. 

Source: Energy News Bulletin

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SANTOS has sanctioned its US$235 million Bayu-Undan infill development drilling program to send more gas to the one train Darwin LNG facility.

Phase 3C is made up of three production wells, one subsea and two platform wells, to extend the life of the facility as sanction of the Barossa backfill field has been delayed to later this year, after an initial final investment decision date of 2020.  

The program will add over 20 million barrels of oil equivalent in gross reserves and will reduce the time the DLNG plant is offline, though the company did not say by now much.  

Source: Energy News Bulletin

Read more here

Community and Business Reference Group meet for the eighth time

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its eighth and final meeting in Darwin and via video conference on 8 December 2020.

Established to provide a forum for government to seek advice and share information, the Reference Group received updates on:

• HFI implementation six month progress update: for the period of 1 May to 31 October 2020
• CBRG term conclusion and ongoing oversight.

The Reference Group discussed the progress update with Northern Territory Government senior officers and Dr David Ritchie in attendance.

The Reference Group supported the view that the CBRG term would conclude on 31 December 2020 without seeking further extension. Engagement and oversight through final stage of inquiry implementation would continue directly with the Independent Overseer, Dr Ritchie and through existing and newly established working and reference groups.

For full details of the meeting read Communique 8