Industry News

Code of Practice released

The Code of Practice has been released, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry. 

The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

The draft Code was out for public comment earlier this year.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including:

• Well operations
  
• Surface activities
  
• Wastewater management
  
• Methane emissions
  

The release of the Code of Practice supports the delivery of the 135 recommendations in the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Read the Code of Practice here

To read the latest from the NTG Newsroom, please visit NTG Newsroom

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

The Territory Labor Government has finalised the Code of Practice, further strengthening protections for the environment and delivering an accountable and transparent onshore gas industry, which will support Territory jobs.

The Northern Territory Government is implementing all 135 recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing. The establishment of the Code means the majority of the recommendations required for exploration to commence this year have been implemented.

The Code was developed by the Northern Territory Government, working closely with the CSIRO, and peer reviewed by scientific experts from around the world.

A total of 29 substantive public submissions were received while the draft Code was available for public comment.

In response to public submissions, the Code has been revised to make it clear that enclosed tanks are required to be used to store wastewater. The Code has also been made clearer regarding wastewater treatment, evaporation, transport and disposal requirements.

The Code mandates enforceable standards and requirements for the onshore gas industry on key issues, including: 

• Well operations

• Surface activities

• Wastewater management; and

• Methane emissions.

Development of the Territory’s onshore petroleum industry has the potential to generate significant investment in the local economy and create local jobs.

Following the approval of environment management plans, civil works are commencing in the Beetaloo basin, in accordance with the Code of Practice. Copies of approved environment management plans will be available to be viewed here: https://denr.nt.gov.au/environment-information/onshore-gas-in-the-northern-territory/environment-management-plan

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

“With this new Code of Practice, our Government is delivering strong and clear regulation to protect the environment, give certainty for investment, and meet community demands.

“Our Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable.

“We expect to see exploration this dry season – so long as the companies have met all the requirements that they need to meet.”

Quotes from the Minister for Environment and Natural Resources, Eva Lawler:

“The Territory’s natural environment is one of our best assets and a huge part of what makes living here so special. Protecting the environment creates jobs — good environmental policy, is smart economic policy.

“We are restoring trust and certainty through the implementation of a robust, clear and transparent set of rules and guidelines for how the environment must be protected.”

“These reforms will strengthen governance and accountability for environmental decisions, providing greater certainty for business and the community.”

Media contacts: Carl Pfeiffer 0417 910 720 (Minister Kirby), Ellie Clancy 0436 646 689 (Minister Lawler).

Shell, along with its Joint Venture Partners INPEX, KOGAS and OPIC, today announced that the first shipment of Liquefied Natural Gas has sailed from Shell’s Prelude Floating Liquefied Natural Gas (FLNG) facility located 475kms North East of Broome in Western Australia. This shipment will be delivered by the Valencia Knutsen to customers in Asia.

Maarten Wetselaar, Integrated Gas and New Energies Director said: “Today’s first shipment of LNG departed from Prelude FLNG, safely. Everyone involved should be very proud of the work taken to reach this important milestone.

“Prelude forms an integral part of our global portfolio and plays an important role in meeting the growing demand for more and cleaner energy for our customers around the world.”

Zoe Yujnovich, Chairman Shell Australia said: “Prelude FLNG combines human endeavour and ingenuity from across the globe and here in Australia. We are proud to work with our local communities, suppliers and partners to ensure its safe, reliable operations into the future.”

www.shell.com.au/prelude

A message from Smart Energy NT:

SmartEnergy NT Action Alliance

3pm- 6.00pm Thursday June 20

ABB, 54 Export Drive East Arm Berrimah

If you would like to attend please go to Sticky Tickets to register. www.stickytickets.com.au/87616

We are please to advise that in conjunction with Environment Centre NT we will be having the public launch of the Beyond Zero Emissions Report: "The 10 Gigawatt Vision: How renewable energy can power jobs and investment in the Northern Territory", Speakers Eytan Lenko and Vanessa Petrie - BZE. Following the presentation we will be forming the four groups listed below to work on projects to achieve our goals.

SmartEnergy NT Policy Group will be formed to explore ways to achieve our goals and then create policy suggestions and form alliances with like minded groups such as RepowerNT. This Group will be led by Alan Langworthy who was the chair of the Roadmap to Renewables committee.

SmartEnergy NT Technical Group will be created to search the world for technical solutions to create stronger grids and microgrids with the goal of producing technology the will assist us in the NT and give us the opportunity to export the technology elsewhere in Australia and overseas.

We are fortunate to have a wonderful facility which specialises in Microgrids for ABB right here in Darwin with research and testing facilities which are world glass. This group will be led by Juergen Zimmermann from ABB who is a passionate Territorian who has the strong technical knowledge to lead this group.

SmartEnergy NT Hydrogen Group will be formed in response to the strong interest shown following our event on April 10 when the Chief Scientist for Australia, DR Alan Finkel, spoke on the medium and long term opportunities for hydrogen in the NT.

With Japan and Korea already committed to becoming Hydrogen economies and our gas already being exported to these countries the NT is in an ideal position to produce Green Hydrogen (fully renewable generated) to these countries and others. On the local scene it was agreed there are opportunities to develop ‘inspirational’ and development Hydrogen project here now. This could be particularly so where high cost diesel is the present way to generate power.

Repower NT Working Group to advocate for the recommendations within the BZE report and to work with the 3 other groups to create a powerful voice for the 10 Gigawatt Vision.

Join Now – Everyone Welcome – Help make a difference

You can now join the SmartEnergy NT Action Alliance and become part of the solution to develop practical ways to build our solar and Smart Energy footprint. This will allow business and consumers to reduce their power cost and facilitate smarter ways to integrate solar energy with the grid. You can join the SmartEnergy NT Action Alliance for as little as $100 by going to https://smartenergynt.com.au/membership/

For further information please call Geoff Goodrich on 0419 906524 or email geoff.goodrich@smartenergynt.com.au

INDONESIA’s government and Japan’s Inpex Corp have finally come to an agreement over the Abadi gas field in the offshore Masela block, making way for potential development of the project some two decades after the field was first discovered.

In a statement on Monday, the Indonesian Ministry of Energy and Mineral Resources said it had come to the historic agreement with Inpex earlier this month and had agreed on a final plan of development framework.

Both parties succeeded in achieving the "win-win solution" through a profit-sharing scheme, in which the government received at least 50%.

"Finally Inpex and SKK Migas agreed on the main points of the development of the Masela block… this discussion has been going on for 18 years," Minister for Energy Ignasius Jonan said. 

"The investment value is between US$18-US$20 billion with fair distribution for the Republic of Indonesia and contractors."

Capital expenditure on the deepwater Masela discovery is expected to reach US$20 billion.

Development of the field will involve a floating facility with a processing capacity of up to 6.8 million tonnes of LNG per annum.

Read more here

Source: Energy News Bulletin

SOCIAL license to operate was again a theme of last week’s APPEA conference and this year the industry organisation seems to have moved a little further along the way, with a new marketing division and a CEO happy to engage with activists. 

To that end new APPEA CEO Andrew McConville, who replaced Malcolm Roberts two months ago, told Energy News he is "absolutely happy to" meet with activists groups, including the anti-fraccing group and stalwart onshore industry critic the Lock the Gate Alliance, which sent a small coterie of protesters to the first day of the conference.  

"Whether that's an olive branch or a handshake…  but to sit down with these guys and have a conversation," he said.  

"It's not just enough anymore for APPEA to be a policy organisation. We have to engage in the right way with the voices that might be different to ours."  

Lock the Gate has driven strong opposition to Santos' Narrabri CSG project in New South Wales. Santos' managing director Kevin Gallagher used much of his address spruikng Narrabri to a packed room full of the sympathetic, suggesting again the proejct could supply 50% of the state's gas needs, with much of that going to manufacturers.  

The organisation this morning accused Strike Energy of covertly planning to frac its West Erregulla-2 well in the Perth Basin, despite the company repeatedly reiterating it was after conventional gas, hoping to prove up the Waitsia trend discovered by AWE's huge 2017 Perth Basin find in its own acreage.  

"If you take Lock the Gate, they obviously have concerns about land access," McConville told Energy News.  

"We have  a framework… we've recently agreed on some principles with the National Farmers Federation, which is supported by Agforce  and New South Wales farmers and others."  

"Is that something where we can sit down and say, well ok, how far apart are we?  That would be a good example with an outcome that might be negotiated."

Read more here

Source: Energy News Bulletin

Onshore Shale Gas Community and Business Reference Group tenure extended by Chief Minister

The Onshore Shale Gas Community and Business Reference Group (Reference Group) met in Darwin last week to consider the suite of regulatory reforms and provide feedback on the overall progress to date of the implementation of recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Initially appointed for a period of 12 months, the Reference Group performs a vital role in providing a platform through which key stakeholders can communicate their views about the implementation framework and its subsequent execution directly to the Government.

Meeting four times a year, the 17 member Reference Group includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government.

Acknowledging the important role the Reference Group plays in ensuring implementation plan progress aligns with community and industry expectations, the Chief Minister has extended the term of the Reference Group for a further 12 months, inviting all members to continue in their current capacity as a Member until June 2020. The next meeting will be held in August 2019.

A number of speakers gave presentations to the group, including:

• The Independent Officer overseeing implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing, provided his assessment of the progress of the Implementation Plan, acknowledging the significant regulatory reform achieved to date, including transfer of regulatory responsibility under the Petroleum Act 1984 from the Minister of Primary Industry  and Resources to the Minister of the Environment and Natural Resources;
• Department of Primary Industry and Resources provided an update on the implementation of Recommendation 14.4, Declared Reserved blocks under the Petroleum Act 1984. The Consultation Paper: Proposed reserved blocks (no-go zones) for petroleum activities in the Northern Territory may be accessed here. Have your say on proposed no go zones here
• Department of Environment and Energy (Commonwealth Government) discussed the Commonwealth approach to environmental assessments under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act).

A communique from the meeting has been published and is available here

The chair of the CBRG can be contacted via email at Cbreference.group@nt.gov.au

A booklet, Preparing for Exploration: Changes to the Regulation of the Northern Territory’s Onshore Petroleum Industry is available here

Read Dr Ritchie’s letter to the Chief Minister on implementation progress here

For more information or to track implementation progress of the recommendations made by the Inquiry, visit www.hydraulicfracturing.nt.gov.au

DARWIN – ConocoPhillips Australia, as operator of Darwin LNG, today announced that it will invest in an innovative battery project projected to reduce the facility’s carbon emissions from power generation by 20 percent.

The battery will enable the existing turbines to run at maximum efficiency and remove the need to run an additional turbine, saving thousands of tonnes of fuel gas and reducing maintenance costs.

Darwin LNG will become the world’s first LNG plant to install a battery to reduce emissions, providing a template for other LNG facilities.

ConocoPhillips Australia West President Chris Wilson said the project continues Darwin LNG’s record of innovation and leadership in carbon management.

“The battery has significant potential to integrate with other opportunities currently being considered by Darwin LNG to increase energy efficiency and reduce emissions such as alternative energy generation,” Wilson said.

“DLNG has been an industry leader in environmental performance and carbon management for over a decade through its role establishing the West Arnhem Land Fire Abatement project (WALFA), pioneer of the savannah-burning offset industry now central to Australia’s emission reduction efforts.

“WALFA remains one of Australia’s largest offset projects and has been emulated by more than 80 other programs, offsetting more than 2 million tonnes of CO2e emissions whilst improving biodiversity outcomes, creating Indigenous jobs and protecting ancient cultural sites from intense wildfire.”

Wilson also noted that ConocoPhillips’ leadership on managing climate-related risks is highlighted by a global commitment to reduce greenhouse gas intensity of operations by 5 to15 percent by 2030.

The Darwin LNG Joint Venture comprises ConocoPhillips (56.9 percent and operator), Santos (11.5 percent), INPEX (11.4 percent), Eni (11.0 percent), JERA (6.1 percent) and Tokyo Gas (3.1 percent). 

READ FULL MEDIA RELEASE HERE

Contact Michael Marren +61477 739 478 Michael.A.Marren@conocophillips.com

Changes to the Regulation of the Northern Territory’s Onshore Gas Industry
 
The Northern Territory Government has implemented changes to the regulation of the onshore petroleum industry to protect the environment, ensure accountable industry practice and provide transparency and clarity in the decision making process. Download detailed information here

Key changes have been implemented in accordance with recommendations set out in the independent Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry) and include;

• The Northern Territory Minister for Environment and Natural Resources is now responsible for the regulation of environmental management of the onshore petroleum industry
  
• Water use for onshore petroleum industry activities is now regulated through the Water Act 1992 with specific requirements for petroleum activities
  
• A legally enforceable Code of Practice clearly defines standards and requirements of petroleum industry operations
  
• Publication of draft Environment Management Plans (EMP) for public comment for the drilling of petroleum wells and hydraulic fracturing prior to consideration by the Minister.
  

New elements of the assessment of EMPs include:

• Publication of EMPs for drilling petroleum wells and hydraulic fracturing for public comment
  
• Alignment with the new Code of Practice
  
• Disclosure of hydraulic fracturing chemicals used, flowback fluid and produced water composition
  
• Baseline weed assessment and weed management plans in place
  
• Northern Territory Sacred Sites Act 1989 authority certificates for protection of sacred sites required before an EMP can be approved
  
• Baseline groundwater and methane monitoring to be completed before drilling and hydraulic fracturing can commence
  
• Mandatory assessment of potential cumulative effects.
  

There are also important changes to laws to increase the transparency around decision making, in addition to EMPs published for public comment, including that public comments will be taken into consideration by the Minister in her decision making. Public comments, and a statement of reasons will now be published on the Department of Environment and Natural Resources website, should an EMP be approved.

The Territory Labor Government will keep almost half of the Territory free from hydraulic fracturing exploration or production activities as part of its commitment to protect our natural environment and create jobs.   

Proposed No-Go Zones Consultation Paper 

As part of recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, areas exempt from petroleum activity, called no-go zones, will cover 48.44 per cent (654,900km2) of the Territory.

The Inquiry determined, through its research and consultation, there should be areas that are off limits to any petroleum exploration or production activities, due to these areas’ unique values and their important role in providing environmental, social, health and cultural benefits to surrounding communities.

In identifying these areas the Territory Government has taken into consideration a number of existing factors such as granted exploration permits, Aboriginal Land and current land use.

The Territory Government will consult with Traditional Owners through the relevant Land Councils to determine whether or not they would like to declare areas within Aboriginal Land as reserve blocks.

By consulting we are ensuring that these areas not only meet the recommendations of the Inquiry, but they also meet the expectations of Territorians. 

Territorians can now have their say on the proposed areas to be declared a reserved block via the website haveyoursay.nt.gov.au

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

“The Territory Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable.”

“Our Government respects the rights of Traditional Owners under the Aboriginal Land Rights Act to determine what activity occurs on their land.

“We are delivering stronger regulation and at the same time creating certainty for companies planning for onshore gas exploration this dry season.”

Media Contact: Cameron Angus 0404 021 192