WORK has been progressing in recent weeks to advance Sun Cable’s Australian-ASEAN Power Link super project in the Northern Territory, designed to export huge amounts of renewable electricity from Australia to Singapore and Indonesia via subsea cable.

The project has backing from tech billionaire Mike Cannon-Brookes and from Andrew Forrest's energy company Squadron, which is also part of consortium called Australian Industrial Energy which is progressing an LNG import terminal in New South Wales. 

The project involves generating three gigawatts of electricity from a 15,000 hectare solar array near Tennant Creek, supported by battery storage, which will then be transported via a 3800km high voltage direct cable to provide one-fifth of Singapore's electricity supply. 

Last week Perth-based Guardian Geomatics was awarded a cable route survey contract by Sun Cable Pty, with plans to use offshore vessel "Offshore Solution" to deliver work starting later this year. 

"Guardian Geomatics are always on the lookout for opportunities to improve our footprint and sustainability - this project is a step in the right direction and something we are very proud of," Guardian Geomatics commercial director Steve Duffield said.  

"Sun Cable is thrilled to have engaged Guardian Geomatics to undertake this critical survey work," Sun Cable CEO David Griffin said. 

Meanwhile, Sun Cable is progressing early contract work for its Middle Arm battery project, ultimately designed to firm up supply from the Power Link. 

Project design is scheduled to start in the third quarter of  this year, with the battery expected to be commissioned and online by the second quarter of 2022. 

The proposed site will be east of the existing Weddell Power Station, with an installed capacity of 50MW scalable to 500MW. 

The project is designed to initially provide active power and ancillary services to the Darwin-Katherine Integrated System.

Source: Energy News Bulletin

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OPERATOR Neptune Energy yesterday announced it is pressing on with its planned exploration of the Petrel oil and gas field in the Bonaparte Basin offshore northern Australia.

Neptune holds a 54% interest in the project alongside Australia's second largest gas producer Santos (40.25%) and Beach Energy (5.75%). 

Late yesterday Neptune told shareholders it had successfully completed the first step in its exploration campaign, namely a 3D seismic survey across two permits north of Western Australia and the Northern Territory. 

The Petrel field is the largest of three gas fields being considered for development by Santos, Beach and Neptune. The other smaller fields include the Tern and Frigate fields which are both wholly owned by Santos. 

The three fields were to be developed by Santos and GDF Suez using a floating LNG facility but those plans were shelved in mid-2014 after oil prices plummeted. However when Neptune came to the party, hopes for the development returned. 

"The seismic survey was the first significant investment in this part of the Bonaparte basin in more than five years and it continues to present exciting future growth opportunities for Neptune offshore Australia," managing director Janet Hann said.

Seismic acquirer Polarcus was contracted to carry out the survey in 2019. The survey was undertaken across NT/P84 and WA-454-P in water depths between approximately 73m to 107m.

Neptune has received some of the initial findings from the seismic, but data processing is expected to be completed later this year.O

Source: Energy News Bulletin

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Leading energy infrastructure company Jemena has joined forces with Saltbush Social Enterprises, part of the Karen Sheldon Group, to deliver a new Indigenous Workforce Mentoring Program: Pipeline to Success.

Jemena’s Managing Director, Frank Tudor said: “This program has been specifically developed for disadvantaged Indigenous job seekers in the Northern Territory’s Barkly region. It aims to equip participants with mentoring and leadership skills so they can support other members of the community into part-time and full-time employment.”

“Through our Northern Gas Pipeline project, we saw many local people participate in learning and development opportunities which ultimately enabled them to contribute to the successful construction of the $800 million gas pipeline. The Pipeline to Success initiative builds on this model and our hope is that through this program we will contribute to the broader economy of the Barkly region, while also identifying and mentoring a talent pool which is potentially capable of working on the Northern Gas Pipeline in the future.”

Mr Tudor congratulated the program’s inaugural mentor, Becky Limerick of the Wakaya people.

“We are delighted Becky has completed six months of training in which she learned about attendance, communication, team work and computer skills. We’re thrilled to hear Becky is already mentoring others and promoting the benefits of this course to her community.

“Becky’s positive experience has paved the way for the program to expand and two more members of the local Indigenous community are now participating.” Mr Tudor said.  

Mr Tudor said Saltbush Social Enterprises was selected to deliver the program after Karen Sheldon Training, part of the Saltbush group, co-delivered Jemena’s Gas Operator Training Program as part of the delivery of the Northern Gas Pipeline.

“Jemena has a long history of connecting with the local community and is building a legacy of support. This latest initiative will enable local Indigenous people to develop employment skills and career opportunities through mentoring. The program will provide an environment in which local people can receive training and receive skills-based learning while respecting their culture,” said Karen.

Image 1: (left to right) student mentor Becky Limerick with Claire Keen

Image 2: (left to right) Jemena MD Frank Tudor, Karen Sheldon Group MD Karen Sheldon and Jemena Corporate Development Manager NT, Brendan Bourke.

About Jemena

Jemena is an $11.5 billion company that owns and manages some of Australia's most significant gas and electricity assets. These include:

·                     the Jemena Gas Network servicing 1.4 million customers around NSW

·                     the Eastern Gas Pipeline which delivers gas from Victoria's Gippsland basin to the ACT, Sydney and regional NSW

·                     the Darling Downs Pipeline Network in south-east Queensland supplying Darling Downs Power Station and APLNG’s export pipeline

·                     the Queensland Gas Pipeline which supplies Gladstone and Rockhampton

·                     Jemena's Victorian electricity network which delivers electricity to over 350,000 homes and businesses in northern and western Melbourne

·                     the Northern Gas Pipeline between Tennant Creek in Northern Territory to Mount Isa in Queensland.

Jemena also part-owns the ActewAGL electricity and gas distribution networks in the ACT and United Energy, which supplies electricity to more than 600,000 customers across south-eastern Melbourne and the Mornington Peninsula.

For more about Jemena, visit www.jemena.com.au

About Saltbush Social Enterprises

Saltbush is a not-for-profit organisation developed in response to the urgent need for opportunities that create prosperity parity for First Australians in the Northern Territory. Saltbush provides and supports genuine opportunities for self-determination and prosperity parity for all Aboriginal Territorians through their employment services, intensive mentoring, counselling and Supported Bail Accommodation.

For more about Saltbush Social Enterprises, visit www.saltbushnt.org.au

About the Karen Sheldon Group

All Karen Sheldon Group enterprises focus on the shared vision of prosperity parity for all Territorians. The focus is on providing Indigenous employment and training opportunities that assist jobseekers transition from welfare dependence towards sustainable employment, careers and small business opportunities.

THERE is no silver bullet to Australia’s current domestic economic woes, but federal minister Karen Andrews today reiterated the federal government’s intentions to remove environmental red tape and put the pedal to the floor for future oil and gas development.

In a speech to the National Press Club today the minister for Industry, Science and Technology Andrews acknowledged the severe hit business had taken to investment due to the coronavirus pandemic. 

While the minister's carefully curated oration focussed on building the manufacturing sector, gas and energy were a key component to her remarks. 

Andrews said energy and technology was a "national priority" and would underpin Australia's manufacturing sector and domestic economic recovery. 

She said she was working "closely" with resources minister Keith Pitt and energy minister Angus Taylor to ensure affordable gas prices for the manufacturing industry and flagged a comeback of affordable steel production and exports as an underlying area of domestic economic recovery. 

"I am at the consumer end. For Australian manufactures I want to make sure they get the best energy prices they can."

Specifically, Andrews flagged a revival of Australia's steel manufacturing sector, despite a global oversupply of steel. 

This would rely on affordable electricity and gas prices, and the government is not yet considering hydrogen, according to Andrews. 

Hydrogen-led ‘green steel' is one idea put forward by centrist think tank the Grattan Institute to drive Australian green jobs and manufacturing while replacing those lost from retirement of coal mines. 

"We need to ensure our steel manufacturers are getting the best energy costs. Energy is a critical input to them. I encourage them to look at how they are going to minimise their energy costs, but hydrogen [is still in early stages]" Andrews said. 

The minister said she understood business was investing heavily in the future energy source, but Australia was a "resource rich nation" and the government was already looking at "how and if" hydrogen could become an export further down the track. 

"Hydrogen is something we are investigating… but it is something a number of years away and it won't be in place for several years to come." 

Instead, Andrews is betting on natural gas being the primary feedstock for manufacturers. 

The minister used her speech to spruik the government's plans to further reduce the price of gas in wholesale markets, saying "cheaper gas" and "reduced cumbersome red tape" would benefit business and improve access to export markets by making products like steel cheaper. 

Source: Energy News Bulletin

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Background

• The NT Onshore Gas Support Industry – Statement of Capacity is now available in hardcopy
• This report supports the NT Gas Service and Supply Plan which was released in March (link here: https://business.nt.gov.au/publications/strategies/gas-service-and-supply-plan)
• The Service and Supply Plan aims to maximise opportunities for NT service and supply businesses in the oil and gas sector, and will help businesses adapt to the dual impacts of the oil price shock and COVID-19.
• The Plan has three key focus areas:

1)    Strengthen the commitment to local content by gas operators and contractors
2)    Grow local workforce and business capability
3)    Strategically develop the service and supply ecosystem

• This Statement of Capacity is a significant step towards delivering opportunities for the NT service and supply sector.

Key Messages

• The NT Onshore Gas Industry Statement of Capacity:
• • Is a forward-looking assessment of the potential demands of an onshore shale gas industry in the NT,
  • identifies the capacity of the NT service and supply sector to meet the needs of a future NT shale gas industry, and
  • identifies gaps in capacity and opportunities for NT businesses to work proactively to prepare for a future onshore shale gas industry.
• A corresponding offshore industry statement of capacity will be released shortly, which has measured actual operational spend on the LNG projects serviced out of Darwin Harbour and the potential for NT companies to compete for a greater slice of the service and supply pie.
• The Northern Territory Government remains committed to achieving its visions for a world-class gas production, manufacturing and services hub by 2030.

For more information, contact:

Sean Reddan

Principal Industry Development Officer, DTBI

 sean.reddan@nt.gov.au

m: +61 436 613 179 

Empire Energy also in talks to secure drilling rig for delayed exploration well as it prepares to resume operations in Australia's Northern Territory.

Australian junior Empire Energy has received a boost for its Northern Territory exploration prospects, with Netherland, Sewell & Associates, Inc (NSAI) carrying out an independent assessment of its Beetaloo sub-basin and McArthur basin acreage.

The assessment by NSAI places the best estimate prospective gas resources across Empire’s acreage at nearly 13.5 trillion cubic feet and placed the overall best estimate prospective resource volume at nearly 2.3 billion barrels of oil equivalent.

“This is a substantial resource for a company of our size. The results of Empire’s recent 2D seismic program have enabled NSAI to evaluate prospects in EP187 which have a best estimate prospective gas resource of over 2.3 Tcf in the Velkerri Shale and 14 million barrels of oil equivalent in the liquids rich Kyalla shale,” Empire managing director Alex Underwood said.

“This represents a near doubling of Empire’s Velkerri shale independent prospective resource estimate and is the first time that the Kyalla shale has been independently assessed as a prospective resource in our properties. The plays evaluated by NSAI in our McArthur basin properties have substantial resource potential.”

Empire added on Monday that it was working with the Northern Territory and the Northern Land Council to resume its work programme activities in the Northern Territory, which had been hampered by the Covid-19 pandemic. 

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THE FEDERAL government has passed key legislation covering many areas of the upstream oil and gas industry, ranging from regulatory powers and levies, to the future of carbon capture and storage developments.

All amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 proposed by the government were finally accepted this week, after many months of debate. 

Separate amendments by Centre Alliance senator Rex Patrick failed, as did an amendment by Greens senator and anti-oil and gas campaigner Sarah Hanson-Young. 

The former wanted to see an amendment to stop multiple extensions to exploration permits for companies holding acreage in Commonwealth waters in the Great Australian Bight while the latter wished to see a moratorium imposed on any future drilling or exploration. 

The government's legislation came in a series of Bills, one focused on the role of the national regulator and oil and gas boundaries, and another paving the way forward for CCS and hydrogen exports, finally formally moving the role of overseeing offshore CO2 storage to the offshore oil and gas safety and environmental regulator NOPSEMA from the Department of Industry and Innovation. 

REGULATORY CHANGES TO NOPSEMA

The Senate voted in favour of overhauling offshore oil and gas regulations to give the national environment and safety watchdog a new, sharper, set of teeth. 

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has been given powers to enforce penalties and issue directions to operators in state waters, should an Oil Spill Emergency occur. 

Source: Energy News Bulletin

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PERTH-based GR Engineering told the market this morning its subsidiary Upstream Production Solutions had been awarded a longer-term contract from the federal government to watch over the Northern Endeavour FPSO offshore Western Australia.

The Northern Endeavour lies inert in the Commonwealth waters of the Timor Sea. The vessel is now in ‘lighthouse' mode and not producing from the Laminaria-Corallina oilfields after its owner Northern Oil and Gas Australia (NOGA) ran out of money and was declared bankrupt. 

The federal government intervened when NOGA went into liquidation, with more than $100 million owing, appointing UPS as the operator of the ageing vessel. UPS previously held the contract when the offshore regulator shut the vessel down over safety concerns, forcing NOGA into administration. 

Today UPS parent company GR Engineering announced it had been given a longer-term contract which will end on October 31 this year to effectively watch over the vessel.

"We are pleased to continue working with the Department and relevant regulatory bodies to safely operate and maintain the Northern Endeavour FPSO whilst it remains in a non-producing state under the Northern Endeavour Temporary Operations Program," GR Engineering managing director Geoff Jones said. 

The contract is expected to be worth approximately A$32 million with money coming directly from the public purse. 

NOGA's fiasco has been an embarrassment for the Australian oil and gas industry, and new federal resources minister Keith Pitt has not held back, labelling the situation a "wake-up call" to industry on his first day in Cabinet in February after he replaced Matt Canavan. 

Canavan, despite seeing himself as friend to both industry and all hydrocarbons great and small, was adamant tax payers should not bear the cost but rather industry should chip in, something which horrified peak lobby body APPEA. 

Source: Energy News Bulletin

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THE Northern Territory Labor government has thrown nearly $12 million at the oil and gas sector in the hope it can fast-track onshore exploration, and thus save the domestic economy.

Treasurer Nicole Manison today released the government's quarterly fiscal report, which showed a deficit of $540 million, and said she made "no apologies for doing whatever it takes to protect Territorians." 

As part of the government's recovery plan post COVID-19, it had brought forward $11.79 million worth of funding for oil and gas explorers and producers to encourage investment. 

The cash will be made available through the Strategic Regional Environmental Baseline Assessment program. 

Treasurer Manison said the costs would be "recouped through cost-recovery arrangement with industry."

"The March quarterly financial figures showed the government budget remained on track for the 2019/20 financial year until the COVID-19 global crisis emerged," Manison said. 

"In response to the COVID-19 pandemic Government took swift and decisive action to save lives and to save jobs.

Manison said the wad of money would provide "funding certainty" for the oil and gas industry. 

She also noted the government remained committed to implementing the Hydraulic Fracturing Recommendations from the scientific inquiry into fraccing which led to the lifting of the fraccing ban in the NT. 

According to the government's website it is only 41% complete in introducing promised fraccing regulations. 

The Michael Gunner-led Territory government has delayed its own budget, following the federal government's decision to suspend its own. The next NT budget will be in November this year. 

Source: Energy News Bulletin

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ENI may sell its Australian assets, according to sources speaking with the Australian Financial Review, with possible buyers including Beach Energy.

Beach does not have any Darwin or offshore Northern Territory assets, or a position in an LNG export facility but does have experience in offshore gas and domestic gas plants and already partners with Santos, which has a large share of Darwin LNG, which the Italian company has a minority stake in.  

Eni also has the undeveloped Evans Shoal field, which it took operatorship of in late 2017. 

Beach's last large purchase was Origin Energy's upstream vehicle Lattice Energy in 2017, and it has spent the past two years pursuing largely organic growth options. 

It farmed out a large stake of its offshore Otway position in Victoria in 2019 to OG Energy. 

APA Group is apparently another targeted buyer, though nothing was mentioned during the pipeliner's online investor briefing day last week. 

"Sources said Eni... and its bankers at Citi had pitched the portfolio as defensive in nature and said they were sheltered from global oil prices, which analysts expect to be low for months or years to come," the Fin said. 

All the Italian company's Australian assets are gas, including the Blacktip gas field which goes to Darwin's Yelcher gas plant and its 11% stake in DLNG and the declining Bayu Undan field which feeds it. 

Source: Energy News Bulletin

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