Industry News

FRACCING protest group Lock the Gate is accusing explorers in the Northern Territory of hiding their true motive for exploration activities, suggesting they are searching for oil and not gas in a misunderstanding of the term ‘liquids-rich’.

The protest group has condemned Origin Energy among other operators in the Beetaloo Basin, claiming that companies are hiding plans to frac shale oil and are misleading the public.  

The basis for this seems to be the descriptor ‘liquids-rich gas', which was not explicitly defined during the Rachel Pepper-led scientific inquiry into fraccing that lifted the moratorium last year but imposed 135 recommendations for its safe practice.  

"This is a case of resource companies and the NT (Michael) Gunner government pulling the wool over the eyes of NT residents," Lock the Gate coordinator Jesse Hancock said in a statement.   

"Fracking companies can call it by any name they want but it's shale oil, and oil presents a much greater risk to communities, especially in terms of transportation," Hancock said. 

The existence of oil in the Beetaloo is well known and there is little subterfuge around going it after - plenty want to -  but Lock the Gate has conflated gas plays with separate oil ones in this case.  

Origin told the Katherine Times that Lock the Gate have "simply misunderstood the phrase ‘liquids rich' gas." 

Origin plans to appraise the liquids rich Kyalla shale Velkerri shale formations for liquids rich gas this year and also has an interest in developing the Hayfield Sanstone oil and condensate play. 

The claims by Lock the Gate come as Federal resources minister Matt Canavan told reporters at a press conference in Darwin that the Beetaloo Basin remained the "best immediate prospect" for domestic oil production. 

Source: Energy News Bulletin

SHELL has chosen Wood and KBR to perform front-end engineering and design for the Crux field development and tieback to the floating LNG vessel the Prelude in the Brose Basin 475 kilometres northwest of Broome. 

Crux is 160 kilometres northeast of the Prelude field in the Browse Basin and has long been chosen by Shell and partners Seven Group Holdings and Osaka Gas as the primary source of backfill.  

The proposal comprises a not-normally-manned platform that will operate five production wells in 165m deep water that will be tied back to the FLNG vessel with a 165km pipeline.  

The facilities will dry the gas and export it via a new subsea pipeline. 

Wood and KBR will deliver the services over 18 months, with teams based in Perth, with support from Wood's Kuala Lumpur regional base.  

The teams will provide a single integrated FEED for the Crux topsides, jacket, export pipeline and subsea pipeline end manifold.  

"This contract win to deliver the next generation of offshore facilities for Shell Australia demonstrates our unrivalled subsea pipeline expertise and offshore engineering capabilities," Wood chief executive Robin Watson said.  

"Wood has extensive experience in delivering technically complex subsea engineering projects in Western Australia. We are committed to expanding our portfolio in the region, developing local content by investing in industry talent, resources and supply chain." 

"KBR is committed to adding value to our customers. That's why we are delighted to partner with Wood to bring together two industry leaders to deliver one world-class complimentary team whilst continuing our long relationship with Shell and Perth, Australia," KBR president and CEO Stuart Bradie said.

Source: Energy News Bulletin

APPOINTING a one-time antifracker as mining minister sends the wrong message to industry, according to federal Resources Minister Matt Canavan.

The appointment of former ETU organiser Paul Kirby as Territory mining minister last week raised eyebrows across the sector given his history as a strong opponent of fracking.

Senator Canavan said he was concerned by the “messaging” of the appointment.

“It comes back to the general principle that the general message coming out of this government is more regulation, more taxes, appointing ministers that don’t seem … to have a passion for the industry from day one,” he said.

“That cumulative effect does have an impact on investment.”

However he said he would give Mr Kirby the “courtesy of being able to prove he’s put that past behind him.”

“Everyone deserves a second chance in life, even people who’ve voted for the Greens,” Senator Canavan said.

Source: NT News

ITALIAN multinational oil and gas company ENI has entered the Australian Renewable Energy market with the purchase of Australia’s largest construction ready solar farm project near Katherine.

ENI said construction work on the solar farm was expected to start in the next few weeks, with an expected commercial operation date in the final quarter of this year.

The $40 million project will have about 75 ha of solar panels about 5km northwest from Katherine and create more than 100 jobs during construction. The project has already sealed a solar offtake deal with the NT Government owned utility Jacana Energy.

A power purchase agreement (PPA) was signed last year between Jacana Energy and Katherine Solar as part of a series of electricity market reforms to deliver lower cost and reliable power.

Considered one of the global supermajors, ENI has operations in 79 countries, and provides domestic gas to the Territory from its Blacktip gas field in the Bonaparte offshore basin off the northwestern coast of Australia.

It has a non-operated interest in the Bayu-Undan gas and condensate field and in the associated Darwin LNG plant. It is world’s 11th largest industrial company.

In a statement issued from Milan yesterday the company said the acquisition of the project from Katherine Solar Pty Ltd a joint venture between Australia’s Epuron and the UK-based Island Green Power will compliment the company’s existing assets in the region’s oil and gas sector.

“Once completed, the project will be the largest photovoltaic (PV) farm in the Northern Territory, consisting of the installation of 33.7 MWp (Mega Watt peak) PV panels, as well as a battery storage system with a capacity of 5.7 MVA/2.9MWh (Mega Volt Ampere and Mega Watt hour),” ENI said.

ENI said Epuron will have an active role in managing the solar farm once it is operational. Epuron already owns and operates solar power stations in the NT at Alice Springs, Yulara, Kalkarindji, Ti Tree and Lake Nash/Alpurrurulam.

“This project will contribute to the Northern Territory’s government goal to procure 50 per cent of its energy from renewable sources by 2030. Once operational, the PV farm will avoid around 63.000 tonnes/year of CO2 equivalent emissions,” ENI said.

Power from thousands of photovoltaic panels would feed into an upgraded substation in Katherine.

This will then flow through the Darwin network supplying 25 megawatts of green power.

Source: NT News

Minister Paul Kirby's Office

Consent to commission means AGI Tanami can now test the pipeline by introducing gas at the pressure under which it will operate. Once testing is successfully completed and independently verified, the pipeline will be able to go into full operational mode.

The Tanami Gas Pipeline will provide gas to Newmont’s Granites gold mine located approximately 550km north-west of Alice Springs in the Tanami Desert. Historically the mining operations have had to rely on diesel to operate, which meant a pause in production if roads became impassable and diesel could not get through.

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

“The Territory Labor Government supports the delivery of job-creating infrastructure, so I am pleased to approve the next stage of works for the Tanami Gas Pipeline.

“Newmont’s Territory mining operations are some of the most successful gold operations in Australia. This pipeline will provide year-round, cleaner power – supporting existing jobs and creating the potential for more jobs.

“The Territory Labor Government will continue to focus on attracting private sector investment across the Territory, and on getting job-creating projects out of the ground as quickly as possible.

Media Contact: Leanne Hudson 0427 687 079

Office of Minister Paul Kirby

The program for the Territory’s premier exploration event has been released, and this year’s Annual Geoscience Exploration Seminar (AGES) includes nine companies presenting on their successful exploration programs in the Territory. 

AGES, which takes place in Alice Springs, promotes the growth of our job-creating resources sector by bringing together people from across the industry to share their expert knowledge, network, and learn about the very latest technology and discoveries in the Territory’s resources exploration.

Highlights of the program include:

• Presentations on new findings and data from the NT Government’s record four-year, $26 million Resourcing the Territory exploration initiative

• Discussions on data from major collaborative programs between the NT Geological Survey, Geoscience Australia and CSIRO

• The latest updates on promising new base metal discoveries in the Aileron Province and the developing lithium deposits of the Bynoe field

• Presentations on the geology and oil and gas potential of the Amadeus Basin

• New insights into gold mineralisation and exploration success from the NT’s three main gold provinces

• A pre-conference showcase by Geoscience Australia on new datasets acquired over the Tennant Creek-Mount Isa region as part of the Exploring for the Future program.

AGES also incorporates the Mining Services Expo, which showcases NT businesses and promotes Territory local contractors. The event will take place at the Alice Springs Convention Centre on 19-20 March, 2019. To find out more visit www.ages.nt.gov.au

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

“Our Government knows Territorians want safe, well-paid, local jobs. By supporting a strong and well-regulated resources sector, including through events like AGES, our Government is focused on delivering those jobs for Territorians.

“We have invested record funding into the resources exploration sector – $26 million over four years through our Resourcing the Territory initiative – creating more jobs for Territorians and more work for Territory businesses.

“This year’s AGES will provide the most up-to-date information on the Territory’s resources potential to investors and explorers, demonstrating why the Territory is a great place to invest and do business.

“AGES is also a chance for industry to hear about resources success stories, and the program this year includes presentations on successful findings in a range of commodities, including gold, lithium, cobalt, copper, oil and gas.

“Territory businesses that service the mining sector benefit from AGES too, as the Mining Services Expo runs alongside the main event, allowing them to showcase their capabilities to explorers and miners.”

Media Contact: Leanne Hudson 0427 687 079

New Minister for Primary Industries and Resources appointed

Minister Paul Kirby was appointed the new Minister for Primary Industries and Resources by the Chief Minister on 31 January this year.

The Chief Minister said Minister Kirby has years of experience working with the oil and gas industry and has worked closely with Territory businesses since being elected to the Northern Territory Parliament in 2016.

The Chief Minister also announced that he would assume the Business and Innovation portfolio.

To view the full media release regarding the new Northern Territory Government Ministry please visit  http://www.newsroom.nt.gov.au/mediaRelease/28641

More information

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au

To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Looking for an interesting perspective on the gas vs renewables debate? Grab a cuppa and read more at The Conversation.

THE Australian Gas Infrastructure Group’s CEO Ben Wilson told Energy News he views hydrogen as a rare bright spot of bipartisan energy policy, with both the Opposition Labor and Coalition government supporting the development of a hydrogen industry in Australia. 

Wilson welcomed Labor's announcement yesterday of $1.14 billion for development of a broad hydrogen industry, with $1 billion going to the Clean Energy Finance Corporation.  

"We very much see this as a national strategy and welcome the momentum it brings," he said. 

"We're very keen on hydrogen as a business, and COAG (the Council of Australian Governments) has been very supportive."  

"I really see hydrogen as a candidate for bipartisan support," he said.  

Last year the government announced $50 million of funding to a brown coal-to-hydrogen project in Victoria led by Kawasaki Heavy Industries worth an ultimate $498 million that aims to develop hydrogen that can be liquefied and shipped to Japan.  

The CO2 left over from the conversion process would then be injected deep underground in a carbon capture and storage process.  

Aside from mentions of ‘renewable' and clean industries and some funding for electrolysers Labor hasn't suggested whether its hydrogen will be ‘green' - made from water split into its parts via solar powered electrolysers - or ‘blue' - made from methane or coal and subject to disapproval from some environmentalists.  

It also hasn't made a statement on the Victorian La Trobe Valley project.  

Echoing the national energy guarantee proposed by then-energy minister Josh Frydenberg Wilson said "a technology neutral approach" to hydrogen was needed. 

"We need emissions targets with affordability and I don't think we should be picking winners. 

"We're very excited about green hydrogen but if you can produce it with carbon capture and storage then why not, if it's viable and can be successful and supports jobs in the La Trobe Valley."

Source: Energy News Bulletin

Read more here.

LABOR’S National Hydrogen Plan hopes to make Australia a world leader “in the burgeoning hydrogen industry – boosting jobs, exports, fuel security and reducing pollution in our energy, transport and industrial sectors”, the party said today in a pre-election pitch to Queensland voters.

Announced by a hi-vis-clad Bill Shorten, the plan has been roundly applauded by both the petroleum industry's lobby body, APPEA, and some environmental groups that have been critical of projects that link coal and hydrogen.  

The $1.14 billion plan is wide ranging and will use existing LNG infrastructure in Gladstone, with plans to shore up transport and export, provide cleaner energy, and possibly up to 16,000 jobs.  

If it wins the as-yet undeclared election Labor plans to invest $3 million to establish the National Hydrogen Innovation Hub in Gladstone. 

Labor cites an International Energy Agency figure of a global hydrogen market worth US$215 billion by 2022.  

Hydrogen is not naturally occurring on Earth, it has be made from something, and there are two types.  

‘Blue' hydrogen is made from coal, or methane, the latter via a steam methane reforming process already used widely in the US. Hydrogen made from coal creates more carbon dioxide, which must then be dealt with via carbon capture and storage in order to ameliorate emissions.   

Green hydrogen uses electrolysers - which are still expensive equipment - fuelled by renewable power to split water into its component parts.  

"From transforming transport, to providing secure, affordable and clean energy for industry, the potential of an Australian hydrogen industry is massive," Labor's one page outline said.  

Source: Energy News Bulletin

Read more here.