Industry News

Energy Club NT are proud to be a supporting partner of this years Indigenous Economic Development Summit being held in Darwin 15-17 May.

The Hon. Selena Uibo MLA, Minister for Aboriginal Affairs, Education and Workforce Training, NT Government has been confirmed to speak at the upcoming Indigenous Economic Development Summit (15-17 May | Darwin)

Joining her will be over 30 of the most experienced and influential thought leaders from Government, industry, land councils and the wider Indigenous community. The summit will showcase some of the most effective strategies to expand the Indigenous business sector and advance economic opportunities.

Key topics to be covered include:

• ·         Government initiatives to advance Indigenous economic development: Hon Warren Snowdon MP, Eddie Fry and various Federal and State departments will explore policies and plans to boost the Indigenous business sector and increasing Indigenous engagement and participation through government procurement processes.
  
• ·         Case studies on successful Indigenous start-ups and enterprise: Leverage lessons from successful entrepreneurs and discover effective strategies to build capability in Aboriginal businesses.
  
• ·         Strategies to boost Indigenous employment and build impactful partnerships: In-depth discussions on how organisations can increase Indigenous employment and create strong partnerships with government and Aboriginal corporations to deliver better outcomes for Indigenous communities.
  
• ·         Initiatives to boost economic development on local Aboriginal land: National Native Title Council and various land authorities across NT, WA, QLD and VIC will discuss boosting Indigenous industry development and commercial land development on local Aboriginal land.

Visit http://www.ied.aventedge.com/ for more information or register now here: http://elm.aventedge.com/ied-reg

Progress towards developing a highly-regulated onshore gas industry: Petroleum Act Amendment Bill 2018 passes and new CSIRO Methane Monitoring Report released

Significant progress implementing the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory is continuing, with amendments to petroleum legislation passed in Parliament last week and the release of CSIRO’s second interim methane monitoring report for the Beetaloo Sub-Basin.


Passing of the Petroleum Legislation Amendment Bill 2018

Petroleum Legislation Amendment Bill 2018 addresses a number of key recommendations including:

• Creating provisions for judicial review, with any person now able to have proceedings heard in the Supreme Court to challenge the lawfulness of particular decisions or determinations under the Petroleum Act 1984 and Petroleum (Environment) Regulations 2016 if they believe the legal process was not followed correctly.
• Ensuring gas companies applying for an exploration permit or production licences must be a “fit and proper person”, with past history and performance taken into consideration.
• Enforcing adherence to mandatory Codes of Practice under the Petroleum (Environment) Regulations 2016.

The mandatory Codes of Practice will be vital to the strong regulatory regime being implemented, addressing well integrity, well decommissioning and abandonment, methane monitoring, surface activities and wastewater management.

These amendments, along with the implementation of other recommendations summarised in table 16.1 of the Final Report of the Scientific Inquiry into Hydraulic Fracturing, will allow exploration to commence this year.

Release of CSIRO’s Ground Survey Monitoring Baseline Emissions in the Beetaloo Sub-basin

CSIRO has published a second interim report following its second round of monitoring of baseline methane emissions in the Beetaloo Sub-basin.

The Inquiry recommended that baseline monitoring of methane be undertaken ahead of the granting of exploration approvals for unconventional gas under recommendation 9.3. The NT Government commissioned the CSIRO through the Gas Industry Social and Environmental Research Alliance (GISERA) to conduct baseline methane monitoring in the Beetaloo Sub-basin.

The CSIRO’s second interim report presented data from surveys conducted over a nine-day period during the fire season between the 6 and 15 November 2018. The first published report presented data from surveys undertaken earlier in the dry season. Additional surveys were conducted during the wet season in early 2019, with findings to be presented in a third report in the coming months.

The surveys of atmospheric methane concentrations within the Beetaloo Sub-basin region were conducted using two gas analysers mounted in a four-wheel-drive vehicle. Vehicle surveys covered approximately 5,300 km on trafficable roads and tracks during the nine-day survey period.

Most of the survey areas include pastoral land, crown land and exploration leases. Where accessible, targeted surveys made during the first survey were repeated at 10 of the 11 plugged and abandoned or suspended petroleum wells, and 16 of the 21 water bores visited during the first survey, and three additional water bores.

The interim report found that overall the majority of methane concentrations recorded during the surveys were within the range of 1.77 to 1.85 parts per million (ppm) with a median value of 1.81 ppm, which is very close to normal background concentrations expected in rural or natural areas, of about 1.8 ppm. This was similar to the results from the first survey.

Isolated pockets of slightly elevated methane concentrations were observed in some areas; the sources of these were identified as grazing cattle, urban areas, pipeline infrastructure and local fires. The observations were expected given these activities are known to generate emissions and were within expected ranges, being very low above background levels.

To read CSIRO’s latest Baseline Methane Monitoring Interim Report click here.

To access detailed information about key legislative and administrative changes, and the implementation of each specific recommendation, visit www.hydraulicfracturing.nt.gov.au

You can download Actions by Recommendation for a full overview of the implementation process.

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

SHELL may move into power retailing in Australia suggesting plans for a “substantial” electricity business at a Bloomberg event in Sydney yesterday, with a focus on renewables as the Dutch oil major sees increasing electrification of the power sector.

The plans are part of its switch to lower carbon energy, though it apparently still sees a future for gas in industry and across the developing world.  

"For us to remain relevant, if we are no good at low-carbon power, we will lose our customer face business. That would be a shame because we are really good at it," global head of gas and new energy Maarten Wetselaar said, according to media reports.  

"It will depend a bit on the opportunity set in Australia and how quickly we want to have all the pieces of the puzzle together, but I'd be very disappointed if we don't have an integrated power business in Australia in the course of a decade, and if we're going to have it, it might as well be substantial." 

"We think there is value to be had on the generation side, the solar farms, wind farms and storage solutions, and the ways with which gas can plug the gaps. 

"You add in the customer side …and trading in the middle…. and you can make value in all three bits and then you make some value by connecting all three," he said.  

He suggested in two decades time houses would be fully electrified for all heating and cooling purposes and said "the provision of electrons" to retail, commercial and industrial customers was part of Shell's longer term strategy.  

Earlier Shell announced it was purchasing Germany's sonnen, a battery company. 

In February at a Melbourne Mining Club speech Shell Australia chair Zoe Yujnovich also announced plans for a 120 megawatt solar plant for its operations.  

"On the drawing board have well-advanced plans for our first solar project − a 120-megawatt solar plant consisting of about 400,000 solar panels," she said. 

Sonnen, meanwhile, put Germany's largest virtual battery into operation, based on a network of home electricity storage systems, though what the oiler paid was not disclosed. 

 Source: Energy News Bulletin

Read more here.

The third meeting of the Onshore Shale Gas Community and Business Reference Group (Reference Group) took place in Darwin on 12 March 2019. 

Established to provide a forum for government to seek advice and share information, the Reference Group discussed the suite of regulatory changes introduced to date, further changes to come, and the overall progress of implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

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

• an Industry Development presentation, including an overview of lessons learnt throughout the development of the shale gas industry in Pennsylvania, USA – presented by Director Tom Murphy from the Penn State Marcellus Center for Outreach and Research (MCOR), via videolink;
• an update on planned exploration activities for the 2019 dry season, and an insight into how the new regulatory regime has impacted industry – delivered by Origin and Santos Industry representatives;

The Reference Group discussed the current status of regulatory changes and key reforms and noted that significant progress has been made to date. 

Having already provided input into the Quarterly Progress Report to December 2018, the Reference Group discussed key priorities for Government for the rest of 2019 as well as upcoming public consultation and engagement activities.

The Reference Group will meet again in May 2019. 

A communique from the meeting has been published and will be available here

The CBRG meets 4 times per year and includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government. 

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

To read more about the legislative changes that have been progressed to date, please visit Community Bulletin 12 

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

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

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

Contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Office Minister Natasha Fyles

Parliament continues in the Northern Territory this week, with Parliament set to debate the Petroleum Legislation Amendment Bill 2018. The Bill includes reforms needed to implement recommendations from the Pepper Enquiry, which will go towards allowing a well-regulated hydraulic fracturing industry to develop.

Parliament will also debate the Electoral Legislation Amendment Bill 2018, which delivers on the Government’s election promise to return to full preferential voting for Northern Territory elections.

Two bills will be introduced and passed on urgency this week, to make important technical amendments to current legislation.

The Criminal Code Further Amendment Bill 2019 will address a shortcoming in legislation that could affect the prosecution of historic child abuse cases.

The Youth Justice Act Amendments Bill 2019 will clarify and tighten the existing framework for managing safety and security risks within youth detention centres.

Other Bills for introduction during sittings this week are:

• The Youth Justice and Related Legislation Amendment Bill 2019

• The Care and Protection of Children Amendment Bill 2019

• The National Disability Insurance Scheme (Authorisations) Bill 2019

Quotes from Leader of Government Business, Natasha Fyles:

“The Territory Labor Government continues to deliver for Territorians by introducing a number of Bills that will create jobs and generational change, and help us build safer, fairer and stronger communities.

“A fair and just legal system is important for all Territorians, and the Criminal Code Further Amendment Bill 2019 will help us better achieve that for victims of historic child sex abuse cases.”

Media Contact: Leanne Hudson 0427 687 079

Office Minister Paul Kirby

The Annual Geoscience Exploration Seminar (AGES) kicks off in Alice Springs today with the highest amount of registrations since 2013, underpinning increased confidence in the Territory’s resources sector.  

The Territory’s premier mineral and petroleum exploration event, the two-day AGES gathering has already received registrations from around 250 people, making it the best attended AGES conference in six years.

More than 50 exploration companies from around Australia and globally are sending delegates to AGES, including some that are looking at investing for the first time in the Northern Territory.

Minister for Primary Industry and Resources, Paul Kirby said the Territory’s exploration sector is growing, driven by strong exploration for commodities such as zinc, copper, gold and lithium, and AGES was an opportunity for the industry to share information on exploration results and new discoveries.

The seminar comes off the back of some encouraging new data released by the Australian Bureau of Statistics (ABS) showing that:

• The Territory’s mineral exploration expenditure in the 2018 calendar year was $123.2 million – up 35 per cent on 2017.

• The NT’s December 2018 quarterly mineral exploration expenditure of nearly $40 million was the strongest quarter of exploration in the Territory since the mining boom days of 2012.

The ABS stats build on the Territory’s already strong results from financial year 2017/18 where the value of mineral production in the NT reached a record $4.49 billion – a 24 per cent increase on the previous year and the first time the value of the Territory’s mining sector has passed the $4 billion mark.

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

“Our Government will continue to support the Territory’s resources sector – driving investment into the Territory, creating local business opportunities, and delivering local jobs.

 “Under the Territory Labor Government, there is confidence in the resources sector – with record values of mineral production in the Territory, increasing minerals exploration activity and certainty for the future of onshore gas exploration.”

Media Contact: Carl Pfeiffer 0417 910 720

 

One of Eureka’s water treatment facilities MGX Minerals and Eureka Resources are planning a joint venture to extract lithium from water produced at non-conventional oil and gas sites in eastern US.

he pair signed a letter of intent to form an exclusive JV, planning to use MGX's "rapid lithium extraction technology" at Eureka's treatment plants to recover the battery material ingredient. 

Eureka said it converted 10,000 barrels a day of "produced water", from oil and gas operators in the Marcellus and Utica shale formations, into valuable co-products including fresh water and high-purity sodium chloride. 

"Through this joint venture, Eureka will begin extracting lithium as well," the companies said. 

MGX president and CEO Jared Lazerson said the JV would not only look to install an initial rapid recovery system immediately but viewed it as "the first step in executing the strategic vision of petrolithium". 

"The extraction of lithium from oil and gas well sources is a broad paradigm shift for the energy sector," he said.

Source: Energy News Bulletin

Read more here.

JUNIOR producer Jadestone Energy has released its 2019 guidance ahead of announcing its full year results, and expects its overall production rates to triple thanks to its recent acquisition of the Montara oil field in offshore Western Australia.

Jadestone secured 100% of Montara from PTTTEP recently, adding it to the Stag field in northwest Western Australia and its pre-development and exploration assets in Vietnam and parts of Southeast Asia.  

Average Montara production over the last month reached a rate of 15,369 barrels of oil per day, following some flush production from Montara's restart and continued natural flow from the Skua-11 and Swift-2 wells.  

Average unit production from both Montara and Stag costs between US$21-24 per barrel, the junior reported.  

Jadestone estimates this year oil output across its producing assets will average between 13,500-15,500bopd. 

"Following our acquisition of the Montara asset, offshore Australia, we have tripled production, all of it high quality and premium-priced oil from offshore Australia, and are making good progress on a significant development project in Vietnam, which we expect to sanction this year," Jadestone CEO Paul Blakeley said.  

"As we increase our influence and control over the Montara asset, in preparation for taking over operatorship, we are identifying more opportunities to generate value for shareholders, including innovative ways to add reserves and resources, while optimising both production rates and operating costs."

 Source: Energy News Bulletin

Read more here.

The second quarterly update on implementation is now available to view online.

This second report provides detail on the status of implementation as at 31 December 2018. The staged approach to implementation of the recommendations is provided in a narrative format under the six reform areas listed in the Implementation Plan:

• Strengthening Regulation
  
• Ensuring Accountable Industry Practice
  
• Safeguarding Water and the Environment
  
• Respecting Community and Culture
  
• Maximising Regional Benefits and Local Opportunities
  
• Planning for Industry
  

To read the second quarterly report and updates on the implementation of all recommendations, please visit Hydraulic Fracturing Progress.

The Independent Officer overseeing the implementation of the recommendations, Dr David Ritchie, has provided comment on the progress of implementation of the recommendations outlined in the quarterly report. Read Dr Ritchie’s advice here

The third Onshore Shale Gas Community and Business Reference Group (CBRG) meeting will be held in March 2019. The meeting will include:

• Web Presentation by Marcellus Center for Outreach & Research, USA, about lessons from the industry development in the USA;
• Presentation by industry representatives about exploration plans for 2019; and
• Progress report on implementation of recommendations, detailed briefing and feedback on policy issues

The CBRG meets 4 times per year and includes representatives from the community, environmental groups, local business, the gas industry, land councils and local government.

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

A copy of the communique for the third CBRG meeting will be available online following the meeting. Read the communiques of previous meetings here

To read more about the legislative changes that have been progressed to date, please visit Community Bulletin 12

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

To read the Implementation Plan or access additional information regarding the progress of implementation, please visit hydraulicfracturing.nt.gov.au To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au

Contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

Minister Paul Kirby

Applications are open for the latest round of collaborative grants for exploration drilling and geophysics in the Northern Territory, an NT Government initiative which will help to create jobs and provide economic benefits.

The Geophysics and Drilling Collaborations program provides collaborative funding of 50 per cent for up to $125,000 per project of the total costs for drilling and geophysical programs by industry. The projects must be in areas of the NT where there is a lack of geological information.

The collaborative grants program is part of the Northern Territory Government’s $26 million Resourcing the Territory initiative, which includes geoscience and industry stimulus programs to maximise resources exploration in the NT.

With an aim to address gaps in the critical understanding of the geology of the NT, the collaborative grants program will encourage projects that may open up new areas for exploration and ensure the data is made available to the wider exploration community.

Now up to its 12th round of collaborative grants, 2018 saw a record number of applicants received for the program, with 15 projects from 12 different companies potentially receiving more than $1 million in funding.

The Geophysics and Drilling Collaboration project funding is for programs to be undertaken during 2019, and applications will close on 15 April 2019. Guidelines and assessment criteria can be found at www.minerals.nt.gov.au/collaborations.

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

“The Territory Labor Government’s number one priority is jobs.

 “Initiatives like this increase the Territory’s profile as a resources investment destination and will bring in investment and exploration expenditure.

“Research shows the economic return on programs like this is ten times more than what the NT Government spends on the initiatives themselves.”

Media Contact: Carl Pfeiffer 0417 910 720