Industry News

THE Australian Renewable Energy Agency has committed just under A$1 million to Yara Pilbara Fertlisers to support a feasibility study to produce renewable hydrogen and ammonia.

The study, conducted by Yara in collaboration with Engie, will look into creating hydrogen using electrolysis via solar PV at an industrial scale at Yara's existing ammonia facility in the Pilbara.  

The renewable hydrogen produced is expected to displace 30,000 tonners per year of hydrogen currently created from fossil fuels, according to ARENA.  

The blended hydrogen will then be converted to ammonia with a lower carbon footprint and sold for further processing into domestic and international markets.  

The study will also investigate using seawater for electrolysis. 

Yara hopes in the long term it will be able to produce all of its hydrogen and ammonia with renewables and hopes the study will be the first step on achieving commercial-scale production for export.  

"Yara's project will offer great insight into how Australia's current ammonia producers can transition away from the use of fossil fuels towards renewable alternatives for producing hydrogen while continuing to leverage the substantial export capabilities that those companies have already established," ARENA CEO Darren Miller said.  

"ARENA's support will assist in completing the feasibility study so that we can fully understand the opportunity for generating renewable hydrogen for use in our Pilbara facilities," Yara International executive vice president Production Tove Andersaid said.  

ARENA has committed roughly $50 million toward hydrogen initiatives so far, spread between research and development projects and feasibility and pilot projects. 

Source: Energy News Bulletin

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UPSTREAM Production Services has seen its maintenance service contract with Italy’s Eni for its Blacktip gas field and Yelcherr gas plant extended by two years. 

UPS has held the contract for three years for the platform in the Bonaparte Basin in the Timor Sea and gas plant near Darwin.  

The scope of services includes the administration and execution of maintenance activities and associated support in relation to the unmanned Blacktip wellhead platform and onshore Yelcherr gas plant for domestic use.  

"Upstream  has a well-established track record in the supply of safe and efficient operations and maintenance services in Australia," managing director Geoff Jones aid.  

"We are excited to have been given the opportunity to continue to support Eni Australia on this regionally significant project in the Northern Territory." 

Source: Energy News Bulletin

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TIMOR Resources has secured a US$30 million finance facility via a convertible note structure from Lakehouse Group to progress its onshore drilling plans for  Timor-Leste’s  first onshore well in 44 years. 

Timor Resources, whose parent company is engineering firm Nepean, plans a 10 well campaign to run for 426 days, with five wells this year in one permit it operates under a production sharing contract arrangement with the Dili government and five more in its other permit in early 2021.  

The first spuds on the first of May.  

Wells Karau, Kumbilli, Laisaipi, Lafaek and Raiketin will be drilled in Permit A.  

Eastern Drilling has the drill contract and will use a 1000 Loadcraft rig, made in the US.  

Weatherford is providing the wireline, and explosives, along with other subcontractors from Indonesia coming onshore Timor-Leste for the first time 

The company will free carry national oiler Timor Gap for its 50% share of the full exploration costs over four years valued at US$55 million, and if successful will be seeking field development finance after the drill campaign, possibly again looking to Lakehouse which has over US$1 billion in funds under management.  

The company has two onshore permits in the south close to Suai where the nation plans to eventually develop an LNG export terminal to commercialise gas from its Greater Sunrise fields. 

The unnamed drill rig is currently en-route from the US with an expected arrival date of March. Once onshore, rig training for the 45-strong Timorese workforce will begin. 

"Timor Resources is very optimistic of an oil discovery. Any drilling in the new democratic nation of Timor-Leste will be a country-first," it said today.  

"All historical drilling was completed before any seismic was undertaken. There are two historical wells that had oil discoveries in the permit but were not developed for geopolitical reasons."

Source: Energy News Bulletin

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SANTOS is lobbying all levels of government for its carbon capture and storage pilot program in the Cooper Basin that would eventually see 1.7 million tonnes of CO2 injected underground each year, from an initial 300,000t during phase one. 

It also released its third climate change report which says the oiler has "a long term aspiration of achieving net-zero emissions by 2050" and which offered more detail and colour on its CCS plans.  

Santos managing director Kevin Gallagher said carbon capture is "crucial technology for achieving the world's climate goals… it's a large scale permanent abatement solution".  

There are currently 40 million tonnes per annum of CCS projects in operation globally.  

Australia could be a world leader in CCS and hydrogen production - for which CCS is a necessity if it is to be made from methane or coal - provided policy settings are favourable.  

Santos is planning a front-end engineering and design entry mid-year for an end-of-year final investment decision for phase one of its planned CCS project.  

During a conference call after its full-year earnings were released Gallagher, now a CCS convert, said as the cost of carbon goes up the costs of its carbon sequestration program will go down.  

"We're working hard with all levels of government to encourage the accreditation of sequestration projects for carbon credits in Australia," he said. 

Santos' climate change report, which leans heavily on International Energy Agency data, said its emissions are in line with all three scenarios from the agency's latest climate report, suggests a glowing future for Aussie CCS, provided support is offered.  

Its report states "government policy in the form of tradeable credits, financing vehicles and investment incentives will be needed".  

With this support in place the Cooper and Eromanga basins have potential to store over 20MMtpa of CO2 for 50 years and could also capture emission from power generation, steel, cement and chemicals, Santos said.  

Overall "Australia has an estimated storage capacity of enable injection at a rate of 300MMtpa for at least 100 years," it said. 

The Cooper Basin is ideal given the depleted reservoirs and Santos' long history of working there. It has already drilled two wells to test the project.  

Source: Energy News Bulletin

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SHELL confirmed to Energy News this afternoon its floating LNG vessel the Prelude is out of action but would not give a date for when production would restart. 

"Work continues to restore full operations on Prelude. Our focus remains on a facility that is safe, robust and reliable and we are working to restart production with that in mind," an email said.  

The offshore regulator previously said to this publication that "Shell has advised that the facility will remain shut-down for at least three weeks from last Wednesday, 12 February".  

The National Offshore Petroleum Safety and Environmental Management Authority issued Shell a safety notice January 22 but did not shut the vessel down. Shell took the decision in early February and told Energy News then it was unrelated to the notice.  

Mechanincal issues and power shutdowns apparently drove the production halt.  

Energy News understands half the crew remain stood down with only 180 currently on the vessel.

Source: Energy News Bulletin

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From Minister Kirby's office

The Territory’s exploration sector is experiencing strong growth in exploration activity for commodities such as gold, zinc, copper and lithium.

The upcoming Annual Geoscience Exploration Seminar (AGES) conference provides existing and potential explorers and friends of the industry an opportunity to come together and discuss the latest discoveries and future opportunities for the sector.

AGES is the Territory’s premier mineral and petroleum exploration event held annually, that regularly attracts over 200 delegates.

The 2020 conference is a Territory Government flagship event, highlighting the latest geological results from the Northern Territory Geological Survey’s (NTGS) programs under the Resourcing the Territory Labor Governments initiative.

Celebrating its 21st anniversary in 2020, key program highlights include:

• The first release of data from the new 840 km Barkly seismic survey acquired in collaboration with Geoscience Australia;
• new data on the age, structure and correlations of the South Nicholson Basin;
• The interpretation of the NTGS Tanami airborne magnetic survey; and
• insights into the undercover copper-gold and base metal mineral potential of the ‘East Tennant’ region in the Barkly Tableland and the Rover field SW of Tennant Creek.

To register to attend, or to view the complete conference program for the 2020 Annual Geoscience Exploration Seminar, visit the AGES website.

Quotes from Minister for Primary Industry and Resources, Paul Kirby:

“The Territory Labor Government knows that jobs in regional communities are critical to Territorians, and a healthy exploration sector can play a key role in supporting regional economies in centres such as Tennant Creek and Alice Springs.

“The growth in exploration activity in the Territory proves that the resources sector has an exciting future, a future which the Territory Labor Government supports through the sustainable development of the resources sector and delivering jobs for locals.

“This year attendees can expect to hear about the Territory Labor Government’s NT Geological Survey’s programs under the Resourcing the Territory initiative which is a crucial part of exploration and production success in the minerals sector in the NT.”

Media Contact: Tom Ryan (0436 951 084)

OPERATION of the world’s largest offshore facility, Shell’s embattled Prelude floating LNG vessel, has descended into chaos with back up power generation failing, cardboard potties issued to replace regular toilet facilities and a fleet of helicopters called in to reduce crew numbers.

Only last week Shell chief executive Ben van Buerden told analysts the Prelude was evidence of how new assets would improve the gas giant's cash flow in 2020. 

"Once we reach steady-state operations, we expect one carrier a week to offload LNG, LPG or condensate," he said. 

A week later achieving consistent nameplate output from perhaps the most complex offshore facility ever built looks some time off.  

Prelude has had consistent problems with its steam-driven power generation facility and on Sunday experienced another electrical trip. This time the backup diesel generators failed to power up which "impacted certain amenities onboard" according to a Shell spokesperson. 

This impact included the toilets. Temporary toilets were assembled on every level of the Prelude's living quarters and instructions issued to crew: "People are to defecate into cardboard bedpans and place the pan in a plastic bag and seal it securely." Crew with lesser needs were allowed to continue to urinate in "toilets that are not full." 

Otherwise, bottles and buckets were recommended. 

Tuesday's crew newsletter seen by Energy News that detailed the new sanitary arrangements also advised of the arrival of five helicopters that morning to take crew off to reduce the total number of people on board.  

Shell use Sikorsky S-92 helicopters from CHC Helicopter to service the Prelude, each with the ability to ferry 19 passengers. It is understood that 70 crew were taken off. 

The Shell spokesperson said production had been suspended and work was underway to restore full operations and the issues with crew amenities were being resolved. 

"We have made the proactive decision to temporarily reduce the number of people on board," he said.

Source: Energy News Bulletin

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THE flagship vessel of troubled Northern Oil and Gas Australia is now sitting unmanned in the Timor Sea after the last of its crew was taken off over the weekend, the day after a creditors’ meeting to consider if the company should be liquidated was delayed.

A spokesperson from the Commonwealth regulator, the National Offshore Petroleum Safety and Environmental Management Authority, told Energy News de-staffing the Northern Endeavour floating storage production and offloading vessel was allowed under the vessel's approved safety case and the move had reduced immediate safety risks to zero. 

"The facility is now unmanned, in ‘lighthouse' mode, with navigational aids operational, the wells suspended, and other controls being applied," the spokesperson said. 

"While the facility is not producing and with the wells suspended, any immediate environmental risks are reduced." 

The FPSO had been run with a small skeleton crew since production was shut in last year.  

NOPSEMA's spokesperson said crew removal may occur for maintenance reasons, to avoid cyclone disturbance in the area, or for other emergency management reasons.  

"For cyclone avoidance, facilities typically de-man for the period that is necessary for weather conditions to subside and facility crew to be safely transported to the facility," he said. 

For other reasons, such as this case, the spokesperson said the period would vary and was determined by the operator in accordance with the safety case.

Source: Energy News Bulletin

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AUSTRALIA’S trade relations with one of North Asia’s powerhouse economies, South Korea, are often forgotten in favour of China, Japan and even Indonesia, especially after 2019’s hard won bilateral free trade agreement.

However until recently the nation was the Australia's second-largest LNG export market and is now third, while Australian exports are projected to rise in the mid-term as Seoul plans to retire more coal-fired power. 

Now, Australia's ambassador to South Korea James Choi believes hydrogen cooperation is the way forward, seeing synergies with the LNG export industry much the same way Japan is looking to leverage its decades of trade ties as part of its own long term hydrogen economy plans.  

Earlier this year now-departed resources minister Matt Canavan signed a cooperative agreement with his Japanese counterpart to work more closely on developing a hydrogen economy working on both R&D and multilateral legislation and cooperative efforts.  

However such cooperation doesn't yet exist between Australia and South Korea but Australia's National Hydrogen Strategy released in late 2019 is bullish on the potential for Australia to make billions supplying large Asian economies. 

"A cautiously optimistic scenario could see an Australian hydrogen industry generate about 7600 jobs and add about $11 billion a year in additional GDP by 2050 If global markets develop faster, it could mean another ten thousand jobs and at least $26 billion a year in GDP," a preface to the strategy said.  

"Australia's got abundant gas and renewable energy. … I see hydrogen as the next phase of Australia's very important energy partnership with the Republic of Korea," Choi told the Korea Herald this week. 

Source: Energy News Bulletin

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WHILE much of the attention last week was focussed on the gas part of Scott Morrison’s A$2 billion energy deal with New South Wales, parts of the agreement had a much greener tinge, outlining the underwriting of interconnectors between the states and the establishment of a pilot renewable energy zone.

The federal government, according to last week's statement by the PM, will underwrite the HumeLink and Queensland-NSW interconnectors to strengthen grid reliability, one of the key priorities listed by the Australian Electrical Market Operator's analysis on the grid.  

The $2 billion will also include NSW-based emissions reductions initiatives utilising $960 million in federal funding, both being divvied out into a mix of grants and loans, matched by just over $1 billion of direct funding from NSW.  

"Our agreement with the Commonwealth today will ensure we continue to strengthen and diversify our energy sector here in New South Wales - securing traditional energy sources whilst growing renewable energy investment across the state," NSW premier Gladys Berejiklian said.  

The deal will also provide financial support for the establishment of the nation's first pilot renewable energy zone in the Central West for large-scale renewable projects. 

Source: Energy News Bulletin

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